Whilst retail in general is bearing the brunt of the
downturn, fashion is feeling more pain than most. Here, Retail Assist's Product
Director, Nigel Illingworth, describes ways in which fashion retailers are
using technology to turn themselves into smarter businesses.
Whilst the world of fashion retailing is not alone in
needing to adapt to a tough trading climate, it suffers more than most from
external conditions. These include the demands of multiple season stockholding,
complex supply chains, competition from cheaper markets, and fickle customers
with less disposable income for discretionary purchases. We've seen these elements influence the way in which
fashion retailers behave towards their IT suppliers and use IT.
In the past, in house teams would be expected to
evolve a 5-year or even 10-year IT plan, which brought together commercial
vision and IT investment. Today, it's short-term tactics and results that
count, as retailers focus on 6-24 month developments that can make tangible
improvements.
When it comes to supplier relationships:
- Under-performing systems are no
longer tolerated and retailers look to squeeze greater efficiencies from
an existing core system.
- Gone are the days when a
systems change meant a long process, starting with an ITT. Today,
pressured retailers want rapid results: a better system or a better deal
from their suppliers.
- Suppliers are expected to come
up with flexible working and licensing models.
- Large-scale capital outlays
have disappeared, as leasing, rental and SaaS options become the norm.
- Timescales have been squeezed.
Lengthy implementations with long workshop programmes don't get signed off.
- Packaged solutions have ousted
bespoke developments. The former approach puts the main elements in place,
with minor customisation cost-efficient and often be done by users.
In terms of how IT is used today, the focus is
on 'quick win', justifiable changes that are easy to see, save money, and
enhance processes, customer service and stock management. Increasingly,
retailers use software solutions as the agent for improvement.
The customer experience:
- Whilst many brands boast about store
ordering, their processes are often cumbersome. The best amongst them
use their supply chain software to create a swift and slick process, whereby
items can be sent for home delivery or store pickup
- Linkage and loyalty come from connecting
with customers in new ways, such as via mobile phones, SMS texting and
e-magazines. All can build brand loyalty and demonstrate customer care
- IT solutions are helping
fashion retailers to learn a lesson from their supermarket peers and
improve flexible pricing and promotion.
Stock availability:
- Inter-branch transfers done manually are labour-intensive
and prone to inaccuracy. Today's IT systems look for overstocked or
wrongly-stocked stores and suggest moves. This rebalancing of in-store
stock means sales opportunities aren't lost.
- It's especially important in
fashion to phase stock deliveries. Having stock arriving ad hoc has
cost and space implications and negatively affects cash flow. Better inwards
tracking and control makes a real difference. Whilst this is often
done manually on paper or spreadsheets, savvy businesses use their supply
chain solution to give them control and a holistic view.
- It's important to impose
consistent standards for the whole business to use. Staff must be trained
to understand and follow processes for replenishment. Here, IT
can provide the backbone and prompt staff to take necessary actions.
