Powersourcers: Innovative Supply Chain Management Project

This project presents the Powersourcers business concept, an innovative supply chain management model designed to address challenges within the fast fashion industry. The model focuses on real-time information exchange between stakeholders, utilizing technologies like RFID and ERP systems to improve efficiency and customer satisfaction. It outlines key activities, partners, value propositions, and customer relationships, emphasizing the importance of social media and online documentation for promotion. The project includes a cash flow projection and highlights the model's potential to meet changing customer preferences, create value, and improve the overall success of fast-fashion retailing by collaborating with channel partners. The project concludes with a discussion on the demand from investors and potential returns, including increased profitability, higher growth rates, and improved reputation.

POWERSOURCERS
-INNOVATIVE SUPPLY CHAIN MANAGEMENT
NAME OF THE STUDENT
STUDENT ID
NAME OF THE UNIVERSITY

INTRODUCTION
The global market of fashion retailing
industry is facing significant challenges
in adapting to the new customer
demands.
The supply chain management along
with the logistics are considered to be
the main parts which are blocking the
follow of trends.
The fashion industry is significantly
subjected to the unforced or
unanticipated events like the inflation or
financial crisis (fernie & sparks, 2014).

NEED OF INNOVATION
 The major issue of recent time in the fashion industry is
the increment of the lead time in between the arrival of
the products to store from the manufacturing centres.
 The supply chain management of the fashion industries
are finding it significantly difficult to anticipate the
current trends and the complexity of predicting the
changes in the fashion style are the main barriers in
terms of acknowledging the consumer demands.
 The absence of perfect synchronization among the
customer demand and the supply chain activity are
also contributing to the list of obstacles in the adaption
of the fast fashion changes for the industry (caro &
martínez-de-albéniz, 2015).
 The adaption of fast fashion changes becomes difficult
if there is absence of effective stock and that is
instrumental in switching over of the customers to
some other brands.

DESCRIPTION OF THE
CONCEPT
 The inclusion of Powersourcers business
concept into the fast fashion industries is
significant in generating the on-time or real-
time information and that is highly helpful in
transferring important information to the
different stakeholders of the organization
(basu, 2017).
 The supply chain model will be significant in
allowing the collaboration of the suppliers,
manufacturers and the retailers in sourcing
the material with desired quality which will be
aligning with the customer needs (grefen et
al., 2017).
 The supply chain model will be significant in allowing
the collaboration of the suppliers, manufacturers,
warehouse team and the retailers in sourcing the material
with desired quality which will be aligning with the
customer needs (grefen et al., 2017).

OPERATION OF THE CONCEPT
 The interaction incorporates the generation of the
electronic data interchange or EDI interfaces or
specifically the radio frequency identification scanners
(RFID).
 The formation of the tags of the RFID will enable the
merchandise information to get stored and it and get
scanned.
 ERP is the responsible in exchanging the real time
information regarding the product flow from the
various units.
 The retailers need to install the point-of-sales systems
or POS along with the RFID tags in each of the
products displayed on the shopping centres or in the
warehouses as the integration of the proposed model
in to the fast fashion industry would significantly
require that.
 The movement of stocks will be registered by the
scanning the RFID tags and the barcodes by means of
the POS scanner.


PROPOSED BUSINESS MODEL
 Key activities- the business concept will help the
organizations to exchange the on-time or real time
information regarding the products in between the different
groups of stakeholders.
 Key partners-the service providers for the technology like
erp system, pos scanner, RFID tags along with the different
departments of the organization.
 Value proposition- the model will help the organizations to
incorporate the fast fashion retailing and will be instrumental
in uniting different departments of an organization with a
specified objective.
 Customer relationship- the model will enable the
customers to keep a track of the movement of their desired
product and along with that it will also enable the

PROPOSED BUSINESS MODEL
 Channels- social media and with the
written documents regarding the model.
 Resources- the technical advisers, the
employees of the different departments
along with the required machineries.
 Customer segment- all the manufacturing
centres of the business organizations along
with the shopping centres as well.
 Cost structure- the amount of fund
required for the different systems involved
in the model like ERP system, POS scanner,
RFID tags along with other technical
equipment and their installation.
 Revenue stream- sales and service

SOCIAL MEDIA
 The formation of a website and scope of
providing online documentation regarding
the various aspects of the mentioned supply
chain model and their justification will be
instrumental for the model.
 The promotions in the social media
platforms like facebook, instagram or the
youtube video presentation will be significant
for the model.
 The tech savvy people of current generation
will be able to know the new supply chain
model in a significantly easy manner by the
social media promotions and along with that
the model will be helpful for the customers to
keep a track on their purchases.

CASH FLOW PROJECTION
Year 1 Year 2
Operating activities
Net income $0 $0
Depreciation $8,440 $8,609
Accounts receivable $0 $0
Inventories $0 $0
Accounts payable $0 $0
Amortization 10,00,000 10,00,000
Other liabilities 50,000 50,000
Other operating cash flow items 1,50,000 1,50,000
Total operating activities $12,08,440 $12,08,609
Investing activities
Capital expenditures $0 $0
Acquisition of business 0 0
Sale of fixed assets ($14,09,568) ($14,37,759)
Other investing cash flow items 0 0
Total investing activities ($14,09,568) ($14,37,759)
Financing activities
Long-term debt/financing ($10,000) $0
Preferred stock 0 0
Total cash dividends paid 5,000 5,000
Common stock 0 0
Other financing cash flow items 0 0
Total financing activities ($5,000) $5,000
Cumulative cash flow ($2,06,128) ($2,24,151)

INCOME STATEMENT FOR LAST TWO YEARS
Year 1 Year 2
Gross revenue $50,63,000 $51,64,260
Cost of goods sold $3,00,000 $3,06,000
Gross margin $47,63,000 $48,58,260
Other revenue [source] $0 $0
Interest income $0 $0
Total revenue $47,63,000 $48,58,260
Sales and marketing $6,000 $6,120
Payroll and payroll taxes $50,000 $51,000
Depreciation $8,440 $8,609
Maintenance, repair, and overhaul $0 $0
Total operating expenses $64,440 $65,729
$46,98,560 $47,92,531
Interest expense on long-term debt $0 $0
$46,98,560 $47,92,531
Loss (gain) on sale of assets $0 $0
Other unusual expenses (income) $0 $0
$46,98,560 $47,92,531

POINTS FOR BUY
 The proposed model has the potential to meet the changes in
customer preferences.
 The proposed model has notable impact in providing innovative
solutions so that the clarity along the supply chain paradigm is
achieved.
 The model also helps the organizations in value creation with the
concept of end-to-end visibility of the product flow
 The Powersourcers model is instrumental in acknowledging the
gaps in the case of the customer satisfaction and in creation to
the success related to the fast-fashion retailing.
 The model has significant impact in collaborating the different
channel partners with precise focus on a prescribed objectives.

THE DEMAND FROM THE INVESTORS AND RETURN
Demand-
The required investment.
The required time span for the
return of the investment.
Return-
Increased amount profitability.
Higher growth rate.
Increment in the customers’
number.
Improvement in the reputation of
the organization

REFERENCES
Basu, R. (2017). Managing project supply chains. Routledge.
Caro, f., & Martínez-de-albéniz, V. (2015). Fast fashion: business model overview and research
opportunities. In retail supply chain management (pp. 237-264). Springer, boston, MA.
Fernie, j., & Sparks, L. (2014). Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Grefen, p., Rinderle, S., Dustdar, S., Fdhila, W., Mendling, J., & Schulte, S. (2017). Charting
process-based collaboration support in agile business networks. IEEE internet computing.