Advanced applications of Supply Chain Management (SCM) can
be seen in the retail industry, especially in the apparel sector. It adds value
to the business by reducing the total costs spread across the trading process
by manipulating the speed and certainty of reply to the market. It enables the
industry to remain competitive both at the domestic and global markets.
To capture good profits, the apparel industry must bring
adequate change in its supply chain system. Managing the supply chain requires
a balancing act, meeting multiple needs. Retailers must focus in delivering
high service levels, and also keep low costs so as to remain competitive. Since
the supply chain involves a hefty expenditure, remodeling, or modifying their
existing networks will help the business to reduce their inventory costs, and
increase operating efficiencies thereby ultimately gain more profits.

In today's world of business, the environment has undergone
drastic changes, and has become more competitive than ever before. With the
increasing reach of media, and globalization of business, one countrys
products are available in other countries in a wink. SCM aids the organization
to evaluate their entire operation, and restructure it in such a way, that,
they can focus on its core competencies. It also aids the business in
outsourcing those processes, which is out of bounds of their core
competencies. Selecting the appropriate system of SCM will not only enhance
the companys market position, but also provide them with strategic decisions
in choosing the right partners, manpower and resources.