12 SCS:FASHION SUPPLY CHAINS JULY/AUGUST 2009 SUPPLY CHAIN STANDARD
www.supplychainstandard.com
Fashionably
flexible
Supply chain
functions could
not operate
without the
systems that
support visibility.
It is absolutely
critical to the
effective running
of a fashion
supply chain.
Fashion can be a fickle thing. What’s in
one week might be old news the next so
retailers need to keep on top of changing
trends and adapt supply chains
accordingly to thrive. LUCY TESSERAS
Running a timely and efficient fashion supply chain has
never been without its challenges, but with today’s
economic climate, the move towards global outsourcing
and the rise of online shopping the hurdles have never been so
high and so frequent. That coupled with the fact that
customers are becoming increasingly demanding and savvy
makes it a complicated sector to operate in.
Mark Holland, supply chain director at department store
group House of Fraser, says above all else supply chains needs
to flexible and efficient. “There is less rigidity in a fashion
supply chain, than with food for example, but that can still
breed complications. Even though products aren’t perishable
they still have a very definite life span so there has to be a trade
off between time and cost.”
Sarah Taylor, senior director retail, EMEA at Oracle Retail,
highlights the time-definite nature of the business: “Speed to
market is critical in fashion, as is the ability to change the way
you manage product into store as that has an impact on the
supply chain.”
High street fashion retailer New Look has implemented
Oracle’s Service Orientated Architecture in a bid to increase
operational flexibility, assist international growth and support
its recently launched online channel. The software has helped
increase visibility and control by integrating buying,
merchandising, purchase orders, assortment and supply chain
with one technology. This has helped improve the accuracy of
its 40 million SKU store records and reduce errors in the 3,000
purchase orders raised each week.
Taylor adds that the recession has only polarised the fact
that fashion retailers are trying to capture customer
requirements as best they can. “Customers want items they see
onthecatwalktobeinstoretomorrow,againemphasisingthat
speed to market is key. Getting product into stores quicker than
competitors is vital.”
However, while speed is undoubtedly important, Chris
Stephenson, managing director of TNT Fashion Group, reckons
change is a more pressing priority. “In a benign marketplace it’s
easy to tolerate a few inefficiencies. Making significant changes
to the supply chain is a high-risk operation, so it’s usually
regarded as safer to put up with the limitations than risk the
disruption of major change. That luxury is gone.
“I think our industry’s going through a shakedown that will
see a few bold, entrepreneurial retailers coming out stronger
and more profitable than they went in. But the body count on
the way is likely to be pretty daunting. The winners now will be
the ones with the nerve to wage war on the inefficiencies.
“Yes, speed to market is a vital element of success, but not if
the costs outweigh the benefits. And by costs I mean areas like
accuracy, flexibility and control of shrinkage, not just the
cheque you write out to pay your logistics provider.”
House of Fraser realised the need to streamline data to
increase efficiency and improve visibility within its supply
chain. Mike Hiscock, director of IT at the retailer, says: “Supply
chain functions could not operate without the systems that
support visibility. It is absolutely critical to the effective running
of a fashion supply chain.”
The retailer implemented the Inovis Data Synchronisation
service enabling it to streamline electronic communication
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