The
apparel supply chain is defined as the network of suppliers,
manufacturers, distributors, transporters, storage facilities, and
retailers that participate in the production, delivery, and sale of a
particular product. This complex or system is considered by many
professionals to be the major backbone of the fashion industry. Given its
importance, supply chain management has increasingly become an imperative
and growing specialty within the industry. Supply chain management is
defined as coordinating and improving the flow and transformation of
goods, services, information, and funds within and across companies. Dr.
Teresa McCarthy of Bryant University spoke on supply chain management's
importance and innovation within the industry.
A company's success and profitability is attributed to its ability to design, produce, and distribute goods in a timely manner. The standard life cycle for a company is on average 14 months. However, this basic skeleton does not necessarily lead to great profitability and success, and adherence to this 14 month cycle allows little room for competition and getting ahead. By focusing on strict supply chain management and increasing productivity, a company can speed up its process thus reducing cost and cycle time. Likewise, a company can stay cutting edge, remain on top of trends, and continue to be ahead of competitors. Dr. McCarthy spoke of the current innovations in supply chain management that are making all of this possible.
The supply chain can be broke down into three parts; converters, manufacturers, and retailers. The converting sector of the chain is heavily reliant on capital and driven by equipment. Thus, innovation in this area is focused mainly on machinery. New innovative machinery is being created to improve the speed of converting processes, for example, the new John Deere equipment for cotton farming focuses on speeding up the harvesting process. Also, new "green" innovations are being used in order to turn waste expense into revenues, for example, turning cottonseed meal into animal feed. The manufacturing sector of the chain is heavily reliant on labor and driven by processes. Thus, innovation in this area is focused on procedures and methods. For example, postponement is the process of delaying manufacturing differentiation as close to the actual demands as possible. The invention of quick response manufacturing, the process of using both on-shore and off-shore production, has become very successful. Both of these innovative processes reduce production time as well as decrease risks, which will in turn decrease losses in profit. Lastly, the retailing sector of the chain is highly service orientated and driven by technology. Thus many new innovative technologies have surfaced in recent years. Customer relationship management systems synthesize information from a company's contact points including sales associates, frequent shopper activity, and surveys. This integration better supports later customer interactions as well as improves and refines marketing activities, forecasting, and management.
Supply chain management is an extremely important aspect of the production sector of the fashion industry. In order to stay competitive and successful in today's economy many companies are focusing on supply chain management to drive down costs, improve timing, and increase profits. With this relatively new found attention and significance the supply chain management sector of the industry is making strides towards innovation in all three of its divisions; converting, manufacturing, and retailing.