The final steps of the supply chain journey, from the production line into the hands of paying customers, is coming under increasing focus in fashion retail.
While designer brands may dictate style trends, it is major high street retailers that are driving supply chain process improvement. New technology is helping retailers gain a deeper understanding of consumer behaviour, and The Business of Fashion claims that department stores are setting the standard for data collection and analysis.
Below, we examine three reasons large retailers and department stores are driving supply chain innovation across the garment industry.
They invest in supply chain processes
The success of any modern retailer relies on the continuous improvement of its supply chain process model, and department stores often have the budget to support technological innovation.
In a bid to gain market share, retailers are investing more in trying to understand their customers. Supply chain technology not only makes it possible for retailers to trace the complete path of any production line, but can also allow them to monitor consumer interactions and patterns of behaviour.
They work with multiple brands
Department stores manage the relationship between multiple brands and consumers, adding a degree of separation between the production line and its audience. This makes it much more difficult to control the supply chain process, and to compete with small retailers that have vertically integrated supply chains. The challenges that come with managing a diverse range of brands therefore fuel the demand for supply chain visibility and control.
Suppliers can also benefit from this transparency. The Business of Fashion revealed that many large retailers now charge fashion brands a fee if garments are not packaged exactly as requested. In cases where a lack of compliance leads to a hefty fine, it is essential there is clear communication between supply chain partners.
Segura’s supply chain technology provides garment retailers with a way to effectively manage and monitor their entire supply chain. Segura provides full EDI integration with existing Product Lifecycle Management (PLM) and Enterprise Resource Planning (ERP) solutions to access existing packaging and artwork specifications and track purchases from manufacture to delivery, both reducing the risk of miscommunication within the supply chain and increasing the transparency to the retailer.
They offer omni-channel retail
Online shopping continues to grow in popularity. UK department stores such as Debenhams and John Lewis enjoy a significant amount of online business, and a growing number of large retailers now have more stock online than on the shop floor.
Large retailers are also taking on the challenge of omni-channel retail, offering customers the ability to mix and match multiple sales and distribution channels. This requires the retailer to keep track of inventory spread across stores, warehouses and websites.
Both shopping trends increase the need for supply chain visibility and control, and software solutions are becoming a popular solution. ERP solutions can track business processes, such as distribution, shipping and sales. In contrast, PLM solutions provide a blueprint for a product’s construction, and Segura’s supply chain solution ensures that secondary suppliers fully adhere to this plan.
