Retailers should opt for new supply chain configurations
24 Nov '09
2 min read
Advanced applications of Supply Chain Management (SCM) can be seen in the retail industry, especially in the apparel sector. In order to earn 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 on 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.
Mr. Vineet Kanaujia, GM (Marketing), Safexpress, a pioneer in establishment of a supply Chain management in India spoke to the News desk of Fibre2Fashion. He says, “We have been very actively contributing to the growth of apparel industry in India over the last decade. Safexpress essentially provides three lines of specialized services to its apparel clients including Express Distribution, Third Party Logistics (3PL) services and Supply Chain Consulting.
"We specialize in providing 'Value added supply chain services' to our customers. This gives us a clear edge over other supply chain & logistics players, and helps strengthen our leadership position in the industry”.
While elaborating about the services of his company, Mr. Kanaujia states, “We offer integrated supply chain solutions to our customers, by way of our Third Party Logistics (3PL) services. Specialized Value Added Supply Chain Services are provided by our company to our key apparel clients. These include services like Store-Ready Delivery, Packaging, Labeling and Reverse Logistics.
"Apparel companies can get numerous economic benefits by using 3PL services including elimination of infrastructure investment, risk hedging, better cash-flow, reduction of operating costs, exchange of fixed costs with variable costs, access to external resources along with world-class processes and technologies”.