Supply Chain Management Challenges in Fashion Retail Report

Verified

Added on  2022/12/19

|24
|7339
|61
Report
AI Summary
This report delves into the major supply chain challenges confronting fashion retailers on a global scale, providing a comprehensive literature review. It identifies critical issues such as sourcing goods across international borders, inefficient merchandise planning, inaccurate consumer demand forecasting, the complexities of inventory management, difficulties in managing shipment schedules, port customs clearance problems, and challenges in the processing and allocation of goods. The report explores the underlying causes of these supply chain issues and proposes various strategies for their resolution, offering valuable insights for improving efficiency and mitigating risks within the fashion retail industry. The report covers topics such as discipline in sourcing, merchandise planning, demand forecasting, inventory holding, shipment schedules, port custom clearance, and processing and allocation of goods. The report also investigates the causes of these issues and provides strategies to resolve these challenges in supply chain management.
Document Page
Running head: SUPPLY CHAIN MANAGEMENT
Supply chain management
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
SUPPLY CHAIN MANAGEMENT 2
Table of Contents
Supply chain management...............................................................................................................1
Literature review..............................................................................................................................3
Introduction..................................................................................................................................3
Major supply chain challenges that fashion retailers are facing globally....................................3
- Discipline in the sourcing of goods from its vendors or suppliers across the international
borders......................................................................................................................................3
- Inefficient and untimely planning of the merchandise schedule............................................5
- Improper consumer demand forecasting................................................................................6
- Maintaining the optimum inventory holding to carter demand & supply..............................7
- Managing shipment schedules from forwarders/shippers abroad..........................................7
- Port custom clearance............................................................................................................8
- Processing of goods at the Central Distribution Channel (CDC)..........................................9
- Allocation of goods to the Regional Distribution Centres (RDC).......................................10
Causes of these issues................................................................................................................12
Strategies to resolve these issues...............................................................................................15
Conclusion.................................................................................................................................18
References......................................................................................................................................20
Document Page
SUPPLY CHAIN MANAGEMENT 3
Literature review
Introduction
This report presents the major supply chain challenges that fashion retailers are facing globally.
It also demonstrates the causes of issue in the supply chain. It also explains the strategies for
resolving these issues.
Major supply chain challenges that fashion retailers are facing globally
- Discipline in the sourcing of goods from its vendors or suppliers across the international
borders
According toFernie and Sparks (2018), if fashion retailers are planning to source the goods or
materials overseas then it should be aware of different unique issues that may arise. These may
involve complexities with the regulations, logistics, cultural differences, fluctuation in currency,
time zones, and customs and language. Fashion retailers should not assume that the same rule
would be applied in overseas as they do in the UK, specifically while dealing with country
outside the EU. It relies on suppliers market and it may come across different industrial and
technical standard that may or may not meet UK standards. Along with this, import or export
restrictions are varying at either end of transaction like tariffs and quotas, variation in the
currency exchange rate, complicated documentation needs for cross-border procedures as well
as, unstable political and economic climate and local and regional atmosphere.
In contrast to this, Chan Choi and Ho (2016) stated that local customs and court judgment apart
from national treaties in overseas nations. It is beneficial for fashion retailer due to availability of
feasible jurisdiction as well as law with respect to disagreement. It is illustrated that liability
claims in a situation where fashion product may cause the losses as well as, harms. Moreover,
Document Page
SUPPLY CHAIN MANAGEMENT 4
infringement related to intellectual property rights as well as, provision associated with insurance
at each phases of transit is causes of conflicts in overseas suppliers of fashion retailing sector.
As per the opinion of Choi (2017), evaluated that a well-drafted and written supply contract
would aid to develop the expectations for accountabilities and indemnification as well as,
avoiding the potential disputes. Apart from legal and regulatory differences, other issues can be
created when purchasing supplies abroad. For example, language differences may create when
fashion retailers havea need for discussing complex technical concerns and engaging in detailed
exchanges. Along with this, misinterpretation and misunderstanding could influence the
requirements such as supplier can confuse order quantities and miss deadlines. Language barriers
can also influence the contract negotiations and causing the communication delays together with,
both of which, could influence the bottom line of fashion retailing supply chain.
On the other side, Shen and Li (2015) evaluated that payment method for international
transactions could be difficult. Hence, fashion retailers need to address more regarding paying
for overseas suppliers. Furthermore, the shipping process can be complex and may increase the
distances and requirement for cross borders. It is addressed that cultural differences could be a
concern. Comprehending business and social practices of the nation of supplier could be
supportive for creating trust and developing associations.
As per the opinion of Yang Song and Tong (2017), supply chain management could be
challenging for fashion retailers. It can also consider the requirement related to a number of
suppliers. Over-dependency on suppliers could create issue when one of them goes down.
Furthermore, having a large number of suppliers could be complex to manage.
In contrast to this, Martino et al. (2017) evaluated that cash flow concerns can appear since
payments generally take the long period with overseas suppliers. Fashion retailer has
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
SUPPLY CHAIN MANAGEMENT 5
requirement for making advanced payment as it can directly affect the working capital and
liquidity of company. Fashion retailers should also focus on sourcing of goods from feasible
suppliers across the international borders. There are some goods that may influence the
preferentialrate of duty hence it may check the sources related to raw materials of suppliers.
- Inefficient and untimely planning of the merchandise schedule.
As per the view ofMacchion et al. (2018), the costs created through production as well as,
improper inventory could be proven for constitutinga major elementsrelated to supply chain
expenses that should be entailed cautiously at time of planning perspective. As fashion retail
revenues are rely highly on performance related to in-store first-line sales employees hence,
highly trained and proficient sales managers could be supportive for improving the intention of
buying as well as, vice versa.
Workforce planning is procedure for assessing, planning, forecasting the supply and demand of
employees, addressing gaps, and evaluating the target talent management interventions. It makes
sure that fashion retailer should acquire right people with right skills in right places at an
appropriate time for attaining its mandate as well as, strategic objectives.
Merchandise planning is related to data driven strategy for choosing, purchasing, presenting as
well as, selling the merchandise for increasing the return on investment and meeting the demand
of customers. Merchandise planning is supportive for achieving consumers demand with taking
into consideration of creating right merchandise at right position, price, quantities, and, times.
Apart from this, Yang Song and Tong (2017) evaluated that labour cost is one of the largest
integration related to total operating expenses of a fashion retailer. Hence, interests of
investigation in labour planning of fashion retail are issue that arerising in current times. For
instance, consumer buying behaviourrelies on ration of amount of sales support to the traffic of
Document Page
SUPPLY CHAIN MANAGEMENT 6
consumers. Their statistical investigation depicts efficiency related to proposed heuristic as per
the solution algorithm.
In contrast to this,RizziRomagnoli and Thiesse (2016) evaluated that the problem related to staff
congestion may influence the productivity of labour in the context of supply chain of US fashion
clothing. An efficient local search isrelied on a heuristic algorithm and it proposes to ease effect
of variation in manpower. There area large number of fashion retailers who takes decision with
multi-member for yielding the supply chain system with system-wide most favourable decisions.
For instance, fashion manufacturers create schedules for production as per order from retailers,
whereas ordering approaches related to retailers rely on the demand of consumers.
In the opinion of Martino et al. (2017), inventory decision related to fashion retailers can be
affected through manufacturer’s coordination contracts whether, retailers can influence the
consumer demand via strategic selling, pricing as well as, return policies. In fashion industry,
company can focus on third party firm, development of professional understanding and skills,
and outsourcing. It helps to overcome challenges in supply chain.
In opposed to this, Teller et al. (2016) evaluated that these issues are related to outsourcing
logistics of fashion retailing such as scheduling of transportation and elements of third-party
logistics service providers. Another issue is associated with online channel of retail operations.
Hence, high attention should be considered for developing practical models and effective
implementation of competent algorithms as it helps to create effective solutions of outsourcing
logistics.
- Improper consumer demand forecasting.
In the view ofQrunfleh and Tarafdar (2015), demand forecasting is significant in fundamental
operation management as acontribution for practices of planning. Furthermore, impact of poor
Document Page
SUPPLY CHAIN MANAGEMENT 7
forecasting could be out of stock and large number of inventory, low service level, inefficient
utilization of resources, obsolescence, as well as, bullwhip broadcasting via the upstream supply
chain.
In contrast to this, Choi and Cheng (2015) evaluated that complexity in predicting demand may
lead firms for emphasizing on the enhancement of supply chain, traditional newsvendors,
immature trade-off and types of overage. It is one of the key factors in brand success like Zara
and H&M that has a direct market lead time. Over last years, fashion retailers should emphasize
on inventory strategies and structure of industry can be fundamentally transformed.
- Maintaining optimum inventory holding to carter demand & supply.
According toHinkka et al. (2015), difficulty related to supply chain network has gained with the
globalization. There are different fashion retailing businesses that depend on vast network related
to distributors, suppliers, retailers, manufacturers, and intermediaries in order to source, sell, and
distribute their products. It could lead to a number of stock management issues such as longer
reliable lead times from international suppliers, increased complex tracking inventory together
with supply chain, as well as, issues of tracking and optimizing stock in across multiple
warehouses.
- Managing shipment schedules from forwarders/shippers abroad.
According to Chan (2016), the priority of custom in fashion retailing business is different. There
is need for conducting the random inspections. Furthermore, other target specific concerns to a
specific kind of consignments are country-specific. It is evaluated that importers should always
offer feasible data to freight forwarders. Since, misleading data may lead to distrust as well as,
that is not something a fashion retailer wants to official customs. It can achieve the data for
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
SUPPLY CHAIN MANAGEMENT 8
making sure smoother freight procedures, unanticipated hick-up, and fewer headaches. But, it
creates delay issues in the supply chain.
In opposed to this, Shen and Chan (2017) evaluated that holds as well as, exams can lead for
delaying and it also leads for delaying in associated fees with charges. These outcomes through
host of rationale are ranging through late freight release with inspections. Furthermore, common
delays are confinement as well as, per diem, and demurrage. Hence, fashion retailers should
understand how they differ hence it can effectively negotiate with the trucking fashion retailers
as well as shipping line.
- Port custom clearance.
As per the opinion of Gandhi Shaikh and Sheorey (2017), fashion retailers can face port custom
clearance issue due to misclassification of freight. While evaluating the product within customs
documents then it categorizes it in a way that custom office views of the destination country as
infeasible. Fashion companies shipping products may be at particular risk for this customs
clearance error.
On the other side, Caroand Martínez-de-Albéniz (2015) evaluated that customs clearance is
rejected due to local office views, ocean freight and air fright could be potential health and safety
threat. In such a case, a business may likely to not gain customs clearance and should look for
alternative options in terms of redirecting and returning the freight.
According to Brun Castelli and Karaosman (2016), a fashion retailer can face documentation
concerns. There is a fundamental problem with the labeling entailing certification of weight,
origin, identification marks, and ingredients hold up customs clearance for different shipments.
Furthermore, customs clearance is commonly rejected due to exporter failed for submitting all
required forms.
Document Page
SUPPLY CHAIN MANAGEMENT 9
In opposed to this, Shen Choi and Lo (2016) evaluated that packing regulations related to
receiving nation could be an issue for fashion retailers. There are some destination ports that
mandate specific packing techniques for importer products before granting the custom clearance.
When the material is not packed adequately then freight may be rejected for customs clearance.
As per the opinion of Martino et al. (2015), offensive leashing and cargo loading in vessel could
lead for physical damages and it made either to content and container. It can happen at the time
of loading in which, laborer may misplace the control of cargo and thus causing it to go down or
collapse into close objects. When damages are acquired then claim requires to be developed
within a predetermined time then no compensation will be received through a concerned party.
On the other side, Bottani Montanari and Romagnoli (2016) stated that there is an issue with port
poses related to customs clearance. The key issue for importers as risk of goods being redundant
and higher refused entry in case of adequate credentials has not been considered for cargo. There
are some positions that have particular needs and that should be achieved for making sure that
cargo is not hindered by customs.
As per the opinion of Khurana and Ricchetti (2016), a good illustration of this is customs
clearance in Saudi that is an alias in the context of its severe guideline as well as, complex
clearance process. Unless all of the required documents, as well as needs, are complied with, it is
a complex process to get cargo cleared as well as, in end, fashion retailer will end up to lose
more money as compared to expected.
- Processing of goods at the Central Distribution Channel (CDC)
As per the view ofFernieand Grant (2015), potentially high cost related to rush delivery is key
issues in the processing of goods at a central distribution channel. Each person makes mistakes
even the same mistake is done by inventory control executives. But, those errors can potentially
Document Page
SUPPLY CHAIN MANAGEMENT 10
have higher effect on the central warehouse system. When there is mistake related to the
requirement of products and how long it oughtto last then retailer will have to compensate
additional chargesrelated to rush delivery for compensating to those mistakes. When these
mistakes occur frequently then money could be saved through the application of centralized
warehouse.
On the other hand,BrunCastelli and Karaosman (2017) evaluated that there is inadequate
preparation related to emergencies. Along with this, natural catastrophes could be often
unforeseen as well as, it could cripple a seller. When large number of inventory is one central
warehouse, then retailer can lose millions of dollars when fire was to running away as well as,
destroy whole stock. In the year of 2007 for instance, a fire at Illinois warehouse is owned
through Kable News Fashion retailers that have destroyed whole inventory belonging to Jackso,
Wyoming-based Alpinist. It was periodical high-end magazine that was devoted towards
climbing of alpine style mountain.
As per opinion ofGolpîra et al. (2017), the inventory of magazine is included back concerns as
well as, merchandise such as shirts, stickers, water bottles, hats, coffee mugs. Furthermore, there
wasabout $4 Million worth loss via magazines related to retailing at peak time. When fashion
retailers had not practiced a central warehouse system, it can save millions of dollars.
On the other hand,Iannone et al. (2015) stated that the issue in central distribution channel
cancreate due to lack of competencies among local managers. Sometimes, local managers
demonstrated the biasness for specific inventories to show transparency in supply chain. They
can feel highly protected since natural upheavaling and inventory mismanagement will not
influence them.
- Allocation of goods to the Regional Distribution Centres (RDC)
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
SUPPLY CHAIN MANAGEMENT 11
As per the view of Choi and Shen (2016), the right warehouse system can solve the issue due to
processes that cannot maintain the speed at which product flows via the supply chain. It entails
inventory inaccuracy, inventory location, product diversification, and demand fluctuation. The
key cause of inaccurate inventory count is related to human error. There are some factors such as
regular inventory counts, initial counts or errors in order to pick can develop a range related to
discrepancies in extent noted in inventory management system as well as, actual product in hand.
The issue is manifested while employees confront the conflict numbers as well as, bypass the
issue with respect to prompting delivery to consumers.
On the other hand,Henninger et al. (2015) evaluated that issues with inventory location generally
create over time as new products are added as well as, space is becoming more limited. In
addition to this, failing to develop a significant inventory location system could effectively slow
down the warehouse operations that lead to a variety of supply as well as, delivery concerns.
As per opinion of Kambl Desai and Vartak (2015), fashion retailer should be able for addressing
and avoiding the old stock, makes enhancement in cash flow, declines business carrying costs,
transportation costs, and warehousing costs. It helps to grab the opportunity by launching new
product line and extending product ranges.
On the other hand, Thomassey (2016) stated that all businesses face issues due to changes in
economic circumstances. Furthermore, economic slowdown, political unrest, and severe weather
all play a significant role in volatility in demand. With the real-time insights into what kind of
product flow in as well as, out of the warehouse at all times, a fashion retailer can forecast the
demand much more feasibly.
As per the view of Ren et al., (2017), the approach allocators practice creating these decisions is
away from simple. As a result, it is highly time-consuming. Fashion retailers has need for
Document Page
SUPPLY CHAIN MANAGEMENT 12
focusing on current demand related to more agile, responsive business models, time, and money.
The conventional approach is used in fashion retail stores with the objective of increasing
inventory in an effective manner.
On the other side,Ciasullo et al. (2017) stated that through advanced analytics techniques,
fashion retailers can pull the attention of customers because this technique facilitates the data
related to customers. It should emphasize on supply chain issues. Moreover, advanced analytics
technology is used for avoiding the gaps of conventional allocation strategy.
As per the opinion ofKasemsap (2017), allocation generally considers top-down strategy such as
practicing merchandise financial plan for driving the decision for what goes where. Furthermore,
allocators have requirement to consider the issues of consumer demand. It is underlying concerns
that a fashion retailer faces in supply chain management.
In opposed to this, Hvass (2015) evaluated that all merchandising decisions require an account
for customer demand at the store location level. In addition to this, advanced analytics technique
just creates it possible for merchants to consider this into practice. When a fashion retailer is
tired of the end of season markdown killing and missing the sales opportunities due to
reoccurring out of stock situations since a longer period, then it is time for making the
transformation.
Nurruzaman et al. (2016) stated that a fashion retailer can get the benefit by comprehending the
needs and wants of customer. After comprehending this, fashion retailers can take action due to
pooling valuable data. It is also beneficial for making better decisions during every facet of
fashion retail supply chain.
Causes of these issues
Document Page
SUPPLY CHAIN MANAGEMENT 13
As per view of Chan et al. (2017), key cause of supply chain issue is an inefficient response to
technology trends. There is a requirement for manufacturing corporations, suppliers as well as,
other critical players in the automotive supply chain for ditching the manual and excel based
techniques. It would be related to data analysis, intelligent planning software solutions, and
demand planning.
On the other side, Choi and Liu (2019) evaluated that E2E transparency; visibility and agility are
key drivers to develop a lean and responsive supply stream. There is need to focus on addressing
some issues for success of fashion retailers such as industry 4.0, big information and internet of
things. In current times, fashion retailers should emphasize on technological trends specifically,
in planning and allocation of fashion products. It helps to understand the supply chain condition
and ensures the high efficiency related to production initiatives. It could lead for offering on the
time delivery and in turn, increasing consumer satisfaction.
On the other hand, Shen et al. (2017) evaluated that fashion retailer should identify the
possibility related to a natural disaster for developing as well as, deploying their supply chain
channel. For instance, manufacturing fashion retailers in Mexico could comprehend as well as,
account for potential related to the earthquake. As well as, how these occurrences can damage
their supply and production network and adequate contingency plans to keep production levels.
As per the view ofCastelliand Sianesi(2015), the competency for accurately plan for as well as,
forecast the future demand as per the past production as well as, supply is possibly one of key
drivers to eliminate the disruption as well as, endorsing sustainable fashion retailing initiatives.
In addition to this, intelligent software solutions as well as, their capacity related to E2E
transparency is an essential element of feasible planning with forecasting. In support of this,
Chan Choi and Ho (2016) stated that fundamental comprehension and strategizing related to
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
SUPPLY CHAIN MANAGEMENT 14
producing fashion retailers supply condition as well as, production capacity is key related to
these efforts. Moreover, understanding and insight is required into scope of production network
of fashion retailers, yard and transportation management, container management as well as,
facility capacity. It could be value-added propositions in allocating production initiatives to the
right-centre at a feasible time.
On the other hand, Choi and Liu (2019) evaluated that another external uncertainty related to
disruptions in supply chain, governmental restrictions as well as, regulations are promptly
becoming key hurdle for firm. It needs to overcome through application of supply chain
management approaches particularly at international production network becomes more
unrelated as well as, penetrates new with rising markets.
HübnerHolzapfel and Kuhn (2015) opined that border controls, trade restrictions, labour laws as
well as, taxation is significant component planners. In this way, managers should identify to
develop production and supply approaches. For instance, manufacturing fashion retailers looking
for transporting the parts of the elements through the hub in the nation to the facility in Dallas. In
addition, Texas should account for additional lead times in customs regulations and inspections.
Moreover, failure for identifying this additional phase in transportation as well as, delivery can
outcome in orders not being considered as scheduled.
In contrast to this, Chan et al. (2017) evaluated that fuel costs, efficiency of route, port
complication and chassis vs. Rail are some issue planner in supply chain. Hence, managers
should consider while strategizing ways for eliminating the disruptions while it comes to
transportation-related to products as well as, significant parts of customers across globe. When
detailed analytics, metrics as well as, exposure could be critical value propositions for
eliminating the freight related disruptions as well as, leveraging lean values related to shipping.
Document Page
SUPPLY CHAIN MANAGEMENT 15
Kasemsap (2017) stated that a robust transportation management approach can involve the
contingency plans associated with freight partners that make sure continuous shifting of the
product would not create disruption. Moreover, managers and planners can entail container as
well as, yard management elements as they too could be significant for ensuring the parts of the
right elements are in position at the feasible time for production initiatives.
Strategies to resolve these issues
As per the view of Thomassey (2016), contract production is a significant strategy for attaining
prompt response as well as, coordination of supply chain. On the other side, fashion retailers sell
products as per the signed contract with retailer. For instance, a manufacturer can develop
contracted amount related to fashion products long before season and offers retailer with low
expenses. Retailer can place an order to supplier in case demand is going to increase as it would
be beneficial for overcoming cost from supply chain. Furthermore, the option is that a retailer
can give first orders related to some amount of products through manufacturers as well as
requests further replacement after demand is known with maximum expenses.
On the other side, Henninger et al. (2015) evaluated that traditional chain of suppliers is related
to manufacturers, retailer, and consumer are not transparent. There are different fashion retailers
who practices vertical assimilation in terms of gaining efficiency, avoiding intermediaries as well
as, better comprehend. There are other manufacturers who choose to consider all production
outsourced for increasing the competitive benefits. Moreover, retailers and manufacturers have
recognized that cooperation directs for rapid development in products, production as well as,
distribution with higher profits.
As per the view ofIannone et al. (2015), modern cloud-based warehouse management systems
give continuous knowledge into a distribution center and outfit everybody with the correct
Document Page
SUPPLY CHAIN MANAGEMENT 16
devices to successfully, effectively and beneficially oversee warehouse activity. Modern WMS
Cloud is something beyond a stock control framework; it controls all distribution center
coordination, from stock receipt, control, and the board to arrange satisfaction. At the point when
distribution center tasks run easily, stock tallies are right, the correct item is sent to the opportune
spot at the perfect time, the stock is recharged when required, less picking mistakes happen, and
every one of the individuals, procedures, and frameworks become all-good, income occurs.
On the other side, Khurana and Ricchetti (2016) opined that fashion retailers should implement
the demand related planning as well as, business operating model is relied on real time
perception regarding demand and shaping of demand. The feasible prediction and contingency
planning technique will provide complete views regarding supply chain. Furthermore, fashion
retailer should focus on significant supply chain risks such as natural calamities and political
upheaval. Fashion retailers can make adjustment in pricing as well as, promotion strategies for
shaping the demand as well as, moving the additional product promptly, drive revenue growth as
well as, further expanding the margins for high demand product with the limited market supply.
Macchion et al. (2018) stated that the key is to have foresight for leveraging the chances as well
as, mitigating the challenging events hence fashion retailing businesses not only survive but also
get achievements. With the maturation as well as, arrival related to cloud supply chain
technologies, businesses now have competency to see exactly where their entire inventory is in
real time from store shelf back to manufacturer. Along with this, agile demand driven supply
chain has requirement of end to end visibility in across the business from market and purchaser
to the supply. By cloud technology, business can implement it.
In contrast to this, Shen Choi and Lo (2016) evaluated that fashion retailers should also develop
an adaptive as well as agile supply chain by taking into consideration of integrated
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
SUPPLY CHAIN MANAGEMENT 17
implementation with rapid planning. Once fashion retailers are competent to better comprehend
and shaping the demand and risk. They have requirement of adapting the supply chain in order to
transforming the market opportunities as well as, events. Fashion retailers should deploy
capabilities of dynamic planning and frequently fine tune operations for making sure the
responsive agility in order to meet the transforming demand.
As per view of Shen and Chan (2017), in the old model, suppliers have requirement to wait until
end of month and quarters for shifting the production as well as, supply as per the sales and
shipments. The new model is related with the more dynamic and continuous supply chain
adjustment for promptly responding towards market transformation. It can decline and avoid
shocks in across supply network. The outcomes involve improved collaboration across value
chain, higher transparency, as well as, reliable and conventional sourcing with supply,
transportation, warehouse, manufacturing, speed up decision making with effective analytics and
assistance. In current times, cloud technology is used for selecting the right people, procedure as
well as, technology capabilities.
On the other side,BrunCastelli and Karaosman (2016) stated that fashion retailers can optimize
the product designs as well as, product management for manufacturing, supply as well as,
sustainability in order to increase the advantageous innovation. It is significant for compete in
the marketplace. However, innovation does not exist in a vacuum. For becoming successful,
products should be manufactured at feasible place, cost and time. In the early period of product
development, decision made can break the products. Furthermore, designs should be optimized
for manufacturability, supply as well as, supply chain operations. It is evaluated that all feasible
expenses for delivering should be feasibly captured as well as, assessed for keeping balance in
across end to end business.
Document Page
SUPPLY CHAIN MANAGEMENT 18
In the view of Teller et al. (2016), competitive benefits and product innovation is increasingly
originated from choice and management of technologies and suppliers. When fashion retailers
manage the data, processes, people and decision related to product can attain feasible outcome
with market leadership throughout the product lifecycle. There is no significant mode for
attaining this as compared to clear collaboration and seamless procedure in across the end to end
supply chain from market, demand and customers back to suppliers with manufacturing. The
competencies for arranging the conversation in across end to end business as well as, application
of demand driven perception has never been high in reach. Along with this, cloud collaboration
of Oracle techniques could be used in supply chain for supporting the product designers in terms
of obtaining the innovation solution for demanding consumers. In contrast to this, Shen and Li
(2015) stated that agile company embedded within agile supply chain act better as compared to
the traditional framework of an organization and estimate the driven supply chain that is not
feasible for attaining the challenges related to the fashion industry.
Conclusion
From the above interpretation, it can be concluded that there are different issues of the supply
chain in fashion retailing. These are discipline in the sourcing of goods from its vendors across
the international borders, inefficient and ultimately planning related to merchandise schedule,
and improper forecasting of consumer demand. Other issues are maintaining the optimum
inventory holding to carter demand and supply, managing shipment schedules from shipper
abroad, and port customs clearance.
Some of supply chain issues that could be faced by fashion retailer are processing of goods at the
Central Distribution Channel (CDC), and Allocation of goods to the Regional Distribution
Centres (RDC). It can be also summarised that there are some causes of these issues in the
Document Page
SUPPLY CHAIN MANAGEMENT 19
supply chain such as inefficient response to technology trends, lack of transparency, external risk
and trade restrictions. It can be concluded that there are some strategies for resolving these issues
such as contract production, modern cloud-based warehouse management systems and correct
forecast.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
SUPPLY CHAIN MANAGEMENT 20
References
Bottani, E., Montanari, R. and Romagnoli, G., 2016. Improving sales turnover in fashion
retailing by means of an RFID-based replenishment policy. International Journal of RF
Technologies, 7(1), pp.65-86.
Brun, A., Castelli, C., and Karaosman, H., 2016, April. See now buy now: A revolution for the
luxury supply chain management. In Workshop on business models and ICT technologies for the
fashion supply chain (pp. 33-46). Springer, Cham.
Brun, A., Castelli, C., and Karaosman, H., 2017. A focused supply chain strategy for luxury
fashion management. Journal of Fashion Marketing and Management: An International
Journal, 21(4), pp.544-563.
Caro, F. and Martínez-de-Albéniz, V., 2015. Fast fashion: Business model overview and research
opportunities. In Retail supply chain management (pp. 237-264). Springer, Boston, MA.
Castelli, C.M. and Sianesi, A., 2015. Supply chain strategy for companies in the luxury-fashion
market: Aligning the supply chain towards the critical success factors. International Journal of
Retail & Distribution Management, 43(10/11), pp.940-966.
Chan, A.T., Ngai, E.W. and Moon, K.K., 2017. The effects of strategic and manufacturing
flexibilities and supply chain agility on firm performance in the fashion industry. European
Journal of Operational Research, 259(2), pp.486-499.
Chan, H.L., 2016. Using radiofrequency identification (RFID) technologies to improve decision-
making in apparel supply chains. In Information systems for the fashion and apparel
industry (pp. 41-62). Woodhead Publishing.
Document Page
SUPPLY CHAIN MANAGEMENT 21
Chan, H.L., Choi, T.M. and Ho, Y.M., 2016. How consumer demand affects order quantity in
practice: an empirical study on inventory management decisions in fashion
retailing. International Journal of Inventory Research, 3(2), pp.102-114.
Choi, T.M. and Cheng, T.E., 2015. Sustainable fashion supply chain management. Springer:
New York, NY, USA.
Choi, T.M. and Liu, N., 2019. Optimal advertisement budget allocation and coordination in
luxury fashion supply chains with multiple brand-tier products. Transportation Research Part E:
Logistics and Transportation Review, 130, pp.95-107.
Choi, T.M. and Shen, B., 2016, July. A system of systems framework for sustainable fashion
supply chain management in the big data era. In 2016 IEEE 14th International Conference on
Industrial Informatics (INDIN) (pp. 902-908). IEEE.
Choi, T.M., 2017. Quick response in fashion supply chains with retailers having boundedly
rational managers. International Transactions in Operational Research, 24(4), pp.891-905.
Ciasullo, M.V., Cardinali, S. and Cosimato, S., 2017. A strenuous path for sustainable supply
chains in the footwear industry: A business strategy issue. Journal of Global Fashion
Marketing, 8(2), pp.143-162.
Fernie, J. and Grant, D.B., 2015. Fashion Logistics: Insights into the fashion retail supply chain.
Kogan Page Publishers.
Fernie, J. and Sparks, L. eds., 2018. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Gandhi, A.V., Shaikh, A. and Sheorey, P.A., 2017. Impact of supply chain management practices
on firm performance: Empirical evidence from a developing country. International Journal of
Retail & Distribution Management, 45(4), pp.366-384.
Document Page
SUPPLY CHAIN MANAGEMENT 22
Golpîra, H., Zandieh, M., Najafi, E. and Sadi-Nezhad, S., 2017. A multi-objective, multi-echelon
green supply chain network design problem with risk-averse retailers in an uncertain
environment. Scientia Iranica. Transaction E, Industrial Engineering, 24(1), p.413.
Henninger, C.E., Alevizou, P.J., Oates, C.J. and Cheng, R., 2015. Sustainable supply chain
management in the slow-fashion industry. In Sustainable Fashion Supply Chain
Management (pp. 129-153). Springer, Cham.
Hinkka, V., Häkkinen, M., Holmström, J. and Främling, K., 2015. Supply chain typology for
configuring cost-efficient tracking in fashion logistics. The International Journal of Logistics
Management, 26(1), pp.42-60.
Hübner, A., Holzapfel, A. and Kuhn, H., 2015. Operations management in multi-channel
retailing: an exploratory study. Operations Management Research, 8(3-4), pp.84-100.
Hvass, K.K., 2015. Business model innovation through second hand retailing: a fashion industry
case. Journal of Corporate Citizenship, (57), pp.11-32.
Iannone, R., Martino, G., Miranda, S. and Riemma, S., 2015. Modeling fashion retail supply
chain through a causal loop diagram. IFAC-PapersOnLine, 48(3), pp.1290-1295.
Kamble, S., Desai, A. and Vartak, P., 2015, January. Data mining and data warehousing for the
supply chain management. In 2015 International Conference on Communication, Information &
Computing Technology (ICCICT) (pp. 1-6). IEEE.
Kasemsap, K., 2017. Mastering fashion supply chain management and new product development
in the digital age. Advanced fashion technology and operations management (pp. 65-91). IGI
Global.
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
SUPPLY CHAIN MANAGEMENT 23
Khurana, K. and Ricchetti, M., 2016. Two decades of sustainable supply chain management in
the fashion business, an appraisal. Journal of Fashion Marketing and Management, 20(1), pp.89-
104.
Macchion, L., Da Giau, A., Caniato, F., Caridi, M., Danese, P., Rinaldi, R. and Vinelli, A., 2018.
Strategic approaches to sustainability in fashion supply chain management. Production Planning
& Control, 29(1), pp.9-28.
Martino, G., Fera, M., Iannone, R. and Miranda, S., 2017. Supply chain risk assessment in the
fashion retail industry: An analytic network process approach. Int. J. Appl. Eng. Res, 12, pp.140-
154.
Martino, G., Fera, M., Iannone, R., Sarno, D. and Miranda, S., 2015. Risk identification map for
a fashion retail supply chain. Proceedings of Summer School “Francesco Turco”, Senigallia,
Italy, pp.208-216.
Martino, G., Iannnone, R., Fera, M., Miranda, S. and Riemma, S., 2017. Fashion retailing: A
framework for supply chain optimization. Uncertain Supply Chain Management, 5(3), pp.243-
272.
Nurruzaman, N., Haque, A. and Azad, R., 2016. Is the Bangladeshi RMG sector fit in the global
apparel business? Analyses the supply chain management. The southeast Asian Journal of
Management, pp.53-72.
Qrunfleh, S. and Tarafdar, M., 2015. Supply chain management practices–IT utilization
alignment: impact on supply chain performance and firm performance. International Journal of
Business Information Systems 5, 18(4), pp.364-389.
Document Page
SUPPLY CHAIN MANAGEMENT 24
Ren, S., Chan, H.L. and Ram, P., 2017. A comparative study on fashion demand forecasting
models with multiple sources of uncertainty. Annals of Operations Research, 257(1-2), pp.335-
355.
Rizzi, A., Romagnoli, G., and Thiesse, F., 2016. A new framework for RFID use cases in fashion
and apparel retailing. International Journal of RF Technologies, 7(2-3), pp.105-129.
Shen, B. and Chan, H.L., 2017. Forecast information sharing for managing supply chains in the
big data era: Recent development and future research. Asia-Pacific Journal of Operational
Research, 34(01), p.1740001.
Shen, B., and Li, Q., 2015. Impacts of returning unsold products in retail outsourcing fashion
supply chain: A sustainability analysis. Sustainability, 7(2), pp.1172-1185.
Shen, B., Choi, T.M. and Lo, C., 2016. Enhancing economic sustainability by markdown money
supply contracts in the fashion industry: China vs the USA. Sustainability, 8(1), p.31.
Shen, B., Qian, R. and Choi, T.M., 2017. Selling luxury fashion online with social influences
considerations: Demand changes and supply chain coordination. International Journal of
Production Economics, 185, pp.89-99.
Teller, C., Kotzab, H., Grant, D.B. and Holweg, C., 2016. The importance of key supplier
relationship management in supply chains. International Journal of Retail & Distribution
Management, 44(2), pp.109-123.
Thomassey, S., 2016. Intelligent demand forecasting systems for fast fashion. In Information
Systems for the Fashion and Apparel Industry (pp. 145-161). Woodhead Publishing.
Yang, S., Song, Y. and Tong, S., 2017. Sustainable retailing in the fashion industry: A systematic
literature review. Sustainability, 9(7), p.1266.
chevron_up_icon
1 out of 24
circle_padding
hide_on_mobile
zoom_out_icon
logo.png

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]