CARGOCONNECT-MAY23 - Flipbook - Page 19
THINGS TO CONSIDER BEFORE IMPLEMENTING ADVANCED
SUPPLY CHAIN MANAGEMENT STRATEGIES
Involving Key Stakeholders
Involving key stakeholders early makes
change management easier. For supply
chains, it’s imperative to include the
workers whose workflows will change
the most. That might encompass sourcing
managers, suppliers, and transportation
and logistics providers. Their involvement
ensures a smoother transition and will
help companies find the holes in proposed
changes. With their aid, new SCM functions and processes will be more readily
accepted and become refined.
spring might boost outerwear sales while
putting a damper on other spring arrivals.
Apparel companies need to prevent
shortages and overstocked goods, which is
especially important with shorter fashion
seasons. Running out of an item at the wrong
time can severely impact the season’s sales.
Having too much leftover as new styles come
into season reduces your profitability and
wastes space in the retail storefront or warehouse. Effective supply chain management
ensures a steady supply of product, arriving
just in time to meet current demands.
Without an advanced, competent SCM
structure, apparel brands and retailers
struggle to meet consumer needs. Their
inventory costs increase while product
quality and suitability for the target customer
decrease.
Planning for Long-Term
Success
Implementing effective SCM is a process.
As a manager, you must carefully consider
the scope, schedule and necessary resources
required for successful execution. While
apparel organisations face pressure to
achieve a fast return on investment, trying
to implement too much too quickly can
endanger a project. Creating a phased,
long-term plan to roll out a new logistics
and supplier management system can
help companies avoid risks and smooth
out processes along the way.
Meanwhile, as fashion retailers grow,
their supplier network becomes more complex and interconnected. When a company
has many vendors, it’s useful to standardise
supplier expectations and management
practices. More complex supply chains that
require more time to get products from
raw materials to end consumers need more
management. As companies decide whether
it’s the right time to implement a new SCM
system, they need to consider their current
level of vendor complexity and their plans
for the future.
It can be easily understood that supply
chain problems need systematic demand
planning resulting in greater responsiveness
as it is quite company and system specific.
Apart from efficient inventory management
systems, Artificial Intelligence (AI) enabled
Gaining Supplier Buy-In
A managed supply chain will place new
demands on suppliers. Companies may require
suppliers to hold specific certifications or follow
new practices. A new system will necessarily
impact suppliers, so companies must make sure
suppliers are able to meet new expectations. A
famed clothing brand will likely have an easier
time convincing suppliers to adopt its system.
But in the case of a smaller or mid-sized brand,
it will have to ensure it minimises burdens for
its suppliers. Besides focussing on the system
itself, they will also need to finesse how they
present their requests to vendors.
state-of-the-art vendor management and
digital SCM systems should work in harmony
to make the existing systems more effective,
the transformation must be guided by an
experienced set of change management
and digital supply chain consultants. With
AI driven systems in place, it is possible to
digitally mirror existing supply chains and
manage them while the system continuously
learns to make decisions with incremental
precision every time. With intelligent systems
in place, organisations can save a lot of
lead time to plan for changes and manage
supply chains better.
Growing need for
Adaptive Strategies:
A Indian scenariobased perspective
The growth in the apparel segment is predominantly driven by the development of
modern retail. The increased presence of
organised retail has created an opportunity
for such new retail formats as hypermarkets, cash & carry, and e-commerce. As
a result, a large number of international
apparel brands have forayed into growing
economies in India to leverage the potential.
The consequent increase in competition here
has further impelled international brands
to customise their products and policies to
suit the country’s tastes and preferences.
Similarly, the consumption supply chain
is unique, as consumer’s tastes change every
few kilometres. The ethnic, linguistic, and
cultural diversity of India results in sharp
differences in tastes, habits, incomes, and
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