Fashion Supply Chain Optimization

Abstract

In global, short-life-cycle supply chains, the Make-to-Order (MTO) principle of purchasing is dominant in securing the match between customers' commitment and ordered goods. Risk can be addressed by linking knowledge on inbound logistics to the market by use of e-business solutions. This chapter describes a multi-method approach using both traditional B2B and B2C methods of sales initiatives as an e-business system connecting inbound and outbound supply chains. Initiatives can be reverse auctions, time limited discounts, co-selling, bundling, short campaigns supported with letters, e-mails, giveaways, discount schemes, and payment conditions. Interlinking is to secure full transparency at any given point in time. The discussed solution has the potential of diverting goods to retailers instead of warehouses with the probable effect of increasing revenue of both wholesale and retail with 5 – 10%. Concurrently, the attention created from selling on-ship creates side effects like higher store replenishment rate and attracts frequent shoppers interested in continuously new offerings.