Apparel and footwear: At what point is missed sales better than excess inventory?

Kinaxis

In adidas’s recent earnings call, CEO Kasper Rorsted warned that adidas would miss its 2019 growth target because its supply chain was unable to meet the huge demand for its mid-priced apparel, especially in North America. The CEO went on to imply that losing sales was preferable to building excess inventory. Shouldn’t it be ok to build inventory in anticipation of demand surges, and then apply promotions to work through the excess? by Harish Iyer.

How to Design a Successful Apparel Supply Chain

Logility

Apparel is an exciting and rapidly changing industry. These are just a few of the challenges apparel manufacturers and retailers must overcome to operate at peak performance and compete in today’s dynamic market. To reduce stock-outs and markdowns apparel manufacturers and retailers must improve their in-season performance. Apparel companies that segment customers and localize assortments are able to maximize full price sell through.

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Catastrophic Impacts of COVID19 in Bangladesh Apparel Supply Chain

NC State SCRC

An article written by my former PhD student, Rejaul Hasan, and I just came out this week in Contracting Excellence , the journal published by IACCM, which documents the catastrophe that is unfolding in Bangladesh, one of the world’s major exporters of garments for the apparel sector. But in Bangladesh, 90% of the jobs come from the apparel sector where workers rely on daily wages and now their lives have stopped!

Five Reasons Why Are We Not Making Progress on Inventory Management

Supply Chain Shaman

At the session, we discussed why companies have not made more progress on inventory management. In the case of Apparel and Automotive industries there are slight improvements, but they have shifted inventories to suppliers. Days of Inventory Pre and Post-Recession.

Video Podcast: Apparel Supply Chain Challenges – Size XXL

Logility

We work with a lot of branded and private label apparel manufacturers and brand owners, and it’s clear there is a misperception about supply chain complexity in these industries. Counter to what many people think, apparel supply chains are complex and demanding with global sourcing, long lead times, short selling seasons, and demand uncertainty. We also discussed key opportunities around supply chain modeling, inventory optimization and sales and operations planning.

Video Podcast: Apparel Supply Chain Challenges – Size XXL

Logility

We work with a lot of branded and private label apparel manufacturers and brand owners, and it’s clear there is a misperception about supply chain complexity in these industries. Counter to what many people think, apparel supply chains are complex and demanding with global sourcing, long lead times, short selling seasons, and demand uncertainty. We also discussed key opportunities around supply chain modeling, inventory optimization and sales and operations planning.

Checkpoint Launches First RFID-Based EAS Solution for Apparel Retailers

Supply Chain Network

NYSE:CKP), a leading global supplier of shrink management, merchandise visibility and apparel labeling solutions for the retail industry, today announced here at NRF Loss Prevention Conference & Expo its RFID Overhead EAS Solution, delivering benefits both for loss prevention and inventory visibility at the point-of-exit. We’re providing apparel retailers with solutions that offer a pathway to achieve promising benefits, independent of their individual starting point.”.

COVID-19 Sales to Inventory Ratio Soars

Operations and Supply Chain Management

Some of that stockpiled inventory might be with us for a while. Several clothing retailers are saying they may pack away a substantial share of inventory for later seasons, or even next year, the WSJ’s Jinjoo Lee reports, instead of pushing their goods into what’s likely to be a cutthroat period of post-pandemic markdowns. Companies across the retail sector are coping with bloated inventories after the coronavirus lockdowns kept consumers at home over much of the spring.

Carter’s: A Story of Supply Chain Leadership

Supply Chain Shaman

They include growth, inventory turns, operating margin and Return on Invested Capital (ROIC)). Inventory Turns. Better performance in inventory turns than the peer group average for the period studied. In the analysis of the performance factors of growth, operating margin, inventory turns, and Return on Invested Capital, Supply Chains to Admire winners score at or above the industry peer group average for all four of the factors.

Provoking the Industry to Move Past Incrementalism

Supply Chain Shaman

When we study 600 public companies by peer group, at the intersection of inventory turns and operating margin, only 5% drive improvement. To make the argument, let’s look at industry orbit charts in aggregate for the period of 2006-2017 for the apparel and chemical companies. In this case, the metrics are operating margin and inventory turns. Operating margin is a measurement of profitability and inventory turns is a measurement of how fast inventory turns based on sales.

With Tariffs In Flux, Digital Inventory Technology Might Be The Solution To Holiday Bloated Inventory Levels

Talking Logistics

The tariff situation has companies in a quandary as they debate whether to “load up” on inventory now — to ward off the impacts of potentially-higher tariffs on imported goods — or hold off for now and hope that the political environment calms and things get to back to “normal.”

Does Your Apparel Supply Chain Need a Logistics Makeover?

Supply Chain 24/7

Today’s manufacturers face seemingly competing challenges to meet customer expectations for fresh inventory offered via multiple platforms while relying on increasingly global supplier networks

JDA Customer PVH Named a Top Innovator by Apparel Magazine

Supply Chain Nation

Each year, Apparel Magazine acknowledges apparel retailers, brands, and manufacturers that demonstrate innovation in the apparel supply chain. JDA is proud to recognize that PVH has been named one of Apparel Magazine’s 10 th annual Top Innovator Award winners. based apparel company and is one of the largest global apparel companies, with $8.2 The post JDA Customer PVH Named a Top Innovator by Apparel Magazine appeared first on Supply Chain Nation Blog.

The World’s Largest Brands Are Using Inventory Accuracy and Yard Automation to Fight COVID-19 Chaos

PINC

In an uncertain world where supply chain disruption is becoming a certainty, here’s how good inventory management enabled by automation can help companies gain the supply chain visibility they need to keep the wheels turning. ” Maintaining the Right Inventory Balance. “But amassing inputs or inventory puts them at risk for markdowns or lost investments if merchandise goes out of style or materials deteriorate before they can be used for production.”

Executing on time, all the time: apparel executive’s guide to competitive advantage

RELEX Solutions

CCI is renowned for its expertise in retail business processes and systems delivering practical solutions to optimize sales, margin and inventory across all channels of operation. Apparel executive’s guide to competitive advantage. I think we all know that great apparel brands maintain competitive advantage by consistently executing on time. What great apparel brands do differently? For most apparel companies, it is the cycle from product to customer.

Supply Chain Leaders Rearranging Deck Chairs? Yes, I Think So.

Supply Chain Shaman

They rock back and forth in improving singular metrics but struggle to improve a portfolio of growth, margin, inventory performance, and asset utilization. When we look at public companies at the intersection of operating margin and inventory turns or growth and Return on Invested Capital. Shown in Figure 1 are the aggregate sector results for apparel retail. The industry progressively slid loosing performance in margin and inventory turns, but did not redesign.

With Tariffs In Flux, Digital Inventory Technology Might Be The Solution To Holiday Bloated Inventory Levels

PINC

The tariff situation has companies in a quandary as they debate whether to “load up” on inventory now—to ward off the impacts of potentially-higher tariffs on imported goods—or hold off for now and hope that the political environment calms and things get to back to “normal.”

COVID-19: Implications on inventory planning, sourcing and procurement

EFT

It has been a huge challenge to understand what is changing moment-to-moment, let alone predicting what will happen, so eft by Reuters sat down in a webinar with experts working at the coalface of inventory planning and distribution to understand what can be done to survive and thrive. What we’ve seen is a huge deterioration in the apparel sectors. It has also meant Target has had to be strategic So, what we are doing is protecting our inventory.

Leading Apparel Brand UNTUCKit Optimizes Inventory Through RFID

Supply Chain 24/7

Brick-and-mortar stores are making a comeback, but only the digitally re-defined will thrive. Luckily, tools such as IoT, RFID, beacons and analytics are giving retailers insights into operations that can give their merchandise a boost

Fast Fashion's Inventory Woes: 3 Ways Retailers Can Stay in Business

Elementum

However, this dynamic industry is now facing the same challenges as some traditional retailers —unsold inventory and profit losses. Inventory Woes. billion worth of unsold inventory.

For supply chains, faster is not always better

Supply Chain Movement

Hennes & Mauritz (H&M), the Swedish apparel giant, reported lower like-for-like sales in the first quarter of 2013 and attributed the fall to the unusually cold weather. In contrast, Inditex, the world’s biggest apparel company, saw sales rise, both in 2013 and in August 2016. The pharmaceutical industry is considered a low-speed industry with the typical manufacturer carrying seven months of inventory. Businesses must manage speed.

Fast Fashion's Inventory Woes: 3 Ways Retailers Can Stay in Business

Elementum

However, this dynamic industry is now facing the same challenges as some traditional retailers —unsold inventory and profit losses. Inventory Woes. billion worth of unsold inventory. CEO Karl-Johan Persson stated that moving forward, the company will need to “ensure a faster, more flexible and more efficient supply chain” to address misalignment of inventory and demand.

American Fox Head relocates logistics hub in Europe

Supply Chain Movement

Californian based Fox Head, owner of the action sports apparel and clothing brand Fox, is rapidly expanding its reach in the European market. With multi-channel retail distribution demands the Fox brand features fast-moving product lines that include protective gear and apparel for activity pursuits such as motocross, surfing, BMX and mountain-biking. The Fox brand is the most recognized and best-selling brand of motocross apparel in the world today.

Christmas Becomes Inventory War Game for US Fashion Brands

Material Handling & Logistics

After years of struggling to manage their inventory, brands are using increasingly sophisticated tools to track apparel and accessories through the supply chain, aiming to avoid the typical post-Christmas fire sales. Every Monday morning, retailers typically hold a manager meeting to look at the sell-through rates, or the percentage of the total inventory sold, for the past week. That’s what led to especially bad inventory problems in recent years.

Measuring Up?

Supply Chain Shaman

In our analysis, only one out of ten companies successfully improves operating margins and inventory turns at the same time. When this happens, we find that the organization is more aligned and perform(s) better on the Supply Chain Metrics That Matter –growth, inventory turns, operating margin, Return on Invested Capital (ROIC). (We Inventory Turns. The bigger the inventory turns number the better. Improvements in C2C outpaced inventory improvements.

Lessons in product transition and supply constraints, via adidas

Kinaxis

Rorsted went on to add that it was a better problem to have than too much inventory. The fashion apparel and footwear industry faces its own challenges due to fickle consumer tastes and the added challenge of predicting the right combination of style, color and size in the right markets. What’re the circumstances under which it’s ok to lose sales than have built inventory (and used promotion levers to shape demand)?

Determining Operating Model for Inventory Visibility and Agility

Tompkins Blog

With multi-business units planning and managing their own inventories, the substantial business growth in volumes was limiting adequate end-to-end inventory visibility. The separation of inventories was also limiting the ability to reposition stocks where demand was needed. Tompkins needed to identify the best operating model that would provide inventory visibility and agility to support a true cross-channel business. The Company.

What Happens to Retail in Fall 2020?

Logility

Organizations across the world have been forced to pivot selling and inventory strategies to address the many issues brought on by Covid-19. Collectively, this puts the pressure on allocation teams to be nimble with distribution center inventory.

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Supply Chain by the Numbers for Week of July 9, 2015

Supply Chain Digest

Walmart Charging Vendors for Inventory, The Panama Canal is Filling Up, Apparel Companies See Africa as Next Source of Low Costs, China Stock Market Tumbling, Impacts to Follow

Quick & Easy Store-Specific Planograms: Tailoring Your On-Shelf Inventory to Each Store

RELEX Solutions

Supply Chain Buzzwords 2017 – See The Highlights At NRF Executing on time, all the time: apparel executive’s guide to competitive advantage Omni-channel in 6 steps: how to build a practical, effective plan of action Agile retailing: New ways to manage uncertainty, disruption and innovation Retail Supply Chain Trends in an Age of Instant Gratification. The post Quick & Easy Store-Specific Planograms: Tailoring Your On-Shelf Inventory to Each Store appeared first on RELEX.

A Few Thoughts on the Christmas Supply Chain 2015

Supply Chain Digest

Lean Inventory Levels Led to Many Out of Stocks, and Why Cannot Apparel Companies and Retailers Do Better at Foecasting Size Distribution

Top 9 Marketplaces to Sell Your Products in the Middle East

Vinculum

Headquartered in Dubai, Awok is popular for fashion apparel, lifestyle, electronics, and a number of other categories. Sell on Marketplaces Globally Inventory & Order Management Cross Border Strategy Brands Multi-brand Retailers Marketplaces Industry Insights Marketplace Sellers Seller on MarketplacesThe golden rule of marketing and sales is – be where your customers are.

eCommerce Considerations During the Coronavirus Outbreak

Vinculum

Fashion Trends and Apparel. Digital sales usually vary in different business categories with food & beverages holding 3.25%, apparel at 28.9% Sell on Marketplaces Globally Inventory & Order Management Brands Multi-brand Retailers Marketplaces Industry Insights eCommerce Corona Virus Covid-19The Coronavirus (COVID-19) outbreak achieved global pandemic status since its advent late last year.

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Retail supply chain management and the rise of fast fashion

Kinaxis

While the accessibility of online-only ventures is helping the small apparel retailers, bigger companies like H&M, Under Armour and Zara continue to focus on the supply of fashion through both online and bricks and mortar.

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6 Lessons I Learnt About Verifying Wholesale Suppliers

EMERGE App

They were just that, blank apparel ready for screen printing. The post 6 Lessons I Learnt About Verifying Wholesale Suppliers appeared first on Best Inventory Management Software for Small Businesses - EMERGE App. Introduction. Today your wholesale suppliers are likely to be from China.