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Re-align supply management systems with requirements of retail
21
Apr '09
Drastic changes in the retail sector calls for strategic transformation in the retail sector. The sub-industry of retail is supply chain management. This is one area where fundamental and systematic changes need to take place, as this is a deep concept and is irredeemably flawed.

The main aim of supply chain is to deliver the products in the shortest possible period and at a lower cost. This has currently become one of the dysfunctional sectors. A retailer, on an average required 48 weeks to deliver a pair of jeans from initializing the concept to its store delivery.

This time is more comparatively over the delivery of an aircraft! Reason behind this time lag is the dysfunctional supply chain system.

Any attempt made to reduce the costs actually increases the cost of the garment. The supply chain with its associated dysfunctional cost sheet moves the customer in the opposite direction.

Every time the sourcing specialist reduces the supply chain costs, he is actually raising full service garment costs.
The full value cost system is simple, transparent and most importantly realigns the relationship between customer and supplier.

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Fibre2fashion News Desk - India

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