Creating Aigle Supply Chain in Fashion Industry
International Journal of Retail and Distribution Management, Vol. 32, 2004 Issue 8, pp367-376
CREATING AGILE SUPPLY CHAINS IN THE FASHION INDUSTRY by Martin Christopher, Robert Lowson & Helen Peck ABSTRACT Fashion markets are synonymous with rapid change and, as a result, commercial success or failure in those markets is largely determined by the organisation’s flexibility and responsiveness. Responsiveness is characterised by short time-to-market, the ability to scale up (or down) quickly and the rapid incorporation of consumer preferences into the design process. In this paper it is argued that conventional organisational structures and forecast-driven supply chains are not adequate to meet the challenges of volatile and turbulent demand which typify fashion markets today. Instead, the requirement is for the creation of an agile organisation embedded within an agile supply chain INTRODUCTION Fashion markets have long attracted the interest of researchers. More often the focus of their work was the psychology and sociology of fashion and with the process by which fashions were adopted across populations (see for example Wills and Midgley, 1973). In parallel with this, a body of work has developed seeking to identify cycles in fashions (e.g. Carman, 1966). Much of this earlier work was intended to create insights and even tools to help improve the demand forecasting of fashion products. However, the reality that is now gradually being accepted both by those who work in the industry and those who study it, is that the demand for fashion products cannot be forecast. Instead, we need to recognise that fashion markets are complex open systems that frequently demonstrate high levels of ‘chaos’. In such conditions managerial effort may be better expended on devising strategies
1
International Journal of Retail and Distribution Management, Vol. 32, 2004
and structures that enable products to be created, manufactured and delivered on the basis of ‘real-time’
CREATING AGILE SUPPLY CHAINS IN THE FASHION INDUSTRY by Martin Christopher, Robert Lowson & Helen Peck ABSTRACT Fashion markets are synonymous with rapid change and, as a result, commercial success or failure in those markets is largely determined by the organisation’s flexibility and responsiveness. Responsiveness is characterised by short time-to-market, the ability to scale up (or down) quickly and the rapid incorporation of consumer preferences into the design process. In this paper it is argued that conventional organisational structures and forecast-driven supply chains are not adequate to meet the challenges of volatile and turbulent demand which typify fashion markets today. Instead, the requirement is for the creation of an agile organisation embedded within an agile supply chain INTRODUCTION Fashion markets have long attracted the interest of researchers. More often the focus of their work was the psychology and sociology of fashion and with the process by which fashions were adopted across populations (see for example Wills and Midgley, 1973). In parallel with this, a body of work has developed seeking to identify cycles in fashions (e.g. Carman, 1966). Much of this earlier work was intended to create insights and even tools to help improve the demand forecasting of fashion products. However, the reality that is now gradually being accepted both by those who work in the industry and those who study it, is that the demand for fashion products cannot be forecast. Instead, we need to recognise that fashion markets are complex open systems that frequently demonstrate high levels of ‘chaos’. In such conditions managerial effort may be better expended on devising strategies
1
International Journal of Retail and Distribution Management, Vol. 32, 2004
and structures that enable products to be created, manufactured and delivered on the basis of ‘real-time’
References: International Journal of Retail and Distribution Management, Vol. 32, 2004 Lowson RH (2002), Strategic Operations Management: the new competitive advantage, Routledge: London Wills, G Source: Lowson RH, King R and Hunter NA (1999) Table 2 - QR and Faster Turnover