Logistics and outsourcing in the supply chain

 CPFR Models 

Quick response in logistics and SCM ensures product innovation in the market: the logistics supplier can deliver the vision of designers and buyers, reduce and minimize disturbances in the chain and coordinate and consolidate goods, which is especially important when launching new products and ranges. Data collection and the appropriate and relevant technology must be in place for this to work properly. One such example is a Collaborative Planning Forecasting and Replenishment (CPFR) model of supply. CPFR is ‘a business practice which reduces inventory costs whilst improving product availability across the chain. Trading partners share forecast and results data over the Internet. CPFR data analyses data and alerts planners and merchandisers at each company to exceptional situations that may affect delivery or sales performance’ (Hines, 2005). Trading partners collaborate to resolve these exceptions in the chain in order to maintain stock and availability. CPFR models have been replicated and adapted for use by many large, international fashion retailers in order to make suppliers responsible for stock management. Good stock management is crucial to success in the fashion industry.

Future of technology 

Some large, international retailers are investing in new technological models of supply, including retail exchanges and e-tail logistics, such as the global net exchange (GNX) and the worldwide retail exchange (WWRE) developed by Walmart. Technology helps fashion retailers with sales information that can be transferred and acted upon quickly. These include the following: EDI (electronic data information) packages for sharing data between supply chain partners; EPOS – electronic point-of sale data collection from stores; and SBO, which is sales-based ordering technology (orders placed to replenish sold stock). Other technology used in SCM includes electronic tagging radio frequency identification tags. Walmart piloted a study in the USA and UK fashion retailer Marks & Spencer has trialed its use on high-value items such as suits and leather jackets. The tags can be used to achieve good visibility in the chain; retailers such as Benetton, Gap and Esprit use the tags to track stock movement in the supply chain. They can be used during transportation and warehousing so logistics teams can identify stock, size and color without unpacking boxes and by scanning stock that is packaged. It cannot be emphasized enough that good relationships and outsourcing are fundamental to the future success of SCM in the fashion business and improvements in technology may be used to enhance these relationships. The focus is on fashion retailers in the future to provide better value and to create greater responsiveness via partnerships.

ELECTRONIC TAGGING 

 UK retailer Marks & Spencer has trialed the use of electronic tagging radio frequency identification tags on high-value items such as suits and leather jackets.

Garment specifications: sampling

Performance testing

All products developed must pass performance testing requirements. It is usually the responsibility of the supplier to ensure that all products meet, or exceed, the standards required by the retailer. Before finalizing or signing an agreement, it is important that suppliers understand and agree the quality-standard requirements of the retailer. It is normal practice to have both fabric and garments tested before the product is delivered; typically, the testing is done at a third-party testing facility such as Intertek or ITS. At times, the buyers and design team will designate the testing lab. Sometimes the retailer (or buyer) will submit the garments for testing; however, often the buyer will require that the supplier submits the fabric and garments directly to the testing laboratory and then provide them with copies of the test results. Final bulk testing is completed before bulk production of garments commences. Accurate records must be kept by the manufacturer and the retailer in case of any faults or customer complaints. Many retailers also undertake surprise testing on garments after they arrive into the stores. This technique is used to discourage suppliers from submitting garments in bulk that do not match up to the quality approved for 

final production.

‘Successful fashion design in commercial terms is based upon providing what customers want frequently before they realize it. In fashion retailing successful design equals sales. If a garment design sells well, the basic shape will be “milked” and reworked in a variety of fabrics and colors and prints.’

Specialist fabrics 

Some garments will require additional testing, such as items that claim to be flame retardant, water resistant, anti-bacterial and so on. So-called ‘smart’ fabrics are used for sport and other performance activities, which need to be fit for purpose; Teflon-coated, breathable and water-repellent fabrics require rigorous testing before use. Even simple products, such as a T-shirt jersey, for example, require certain dye stuffs to withstand washing and to limit the shrinkage of fabric. Children’s apparel requires additional product safety testing.

GARMENT SAMPLING 

By the time it reaches the mass production stage, each garment style will have been technically engineered in order to be as cost-effective and aesthetically pleasing as possible, reflecting the original model and ideas of the designer.