Chapter 16, Problem 3CCS

Summary Introduction

Case summary:

The supply chain management process enables the stores to respond quickly towards the customer demand for merchandise. The Company Z a global specialty apparel chain located in Country S. The Company Z load up new fast fashions every few weeks rather than a few months. To fit with such short cycles and to meet customers' demand the company collects timely information from store managers. The device which is always in the hands of the store manager is always connected with the company’s corporate office and which gives information about demanded products and non-demanding products. Company Z always locates the factory near to its headquarters in the Country S and it helps to save time and costs of shipping. The company hangs its merchandise on the rack in the warehouse, therefore, the store employees can directly move the apparel from delivery to the sales floor. Company Z will make delivery to its stores twice a week. The fast-fashion system also ensures the least lead time. the efficient supply management system of Company Z will discount less selling models. The customers are ready to pay even high price and buy the product of Company Z quickly because they may feel that it may not be there for long.

The nature of fashion trends changes rapidly and constantly.  Some of the stores will get fewer units than they ordered because some others ordered a number than required because of fear of out of stock. Some products may simply there in the shop for long by consuming unwanted storage cost and some stores are highly needed for that also. The delivery challenges of the online platform can be solved by promoting store pickup. The frequent weekly orders will lead to affect supply chain management. The Company Z follows merchandise display practice and it removers all sizes if the popular size is not available and it also diminishes shipping. Company Z also incorporates RFID because the manufactures its own clothing. The company now removing the tag after the sale of the product thereby company can reuse it and able to save costs. The company Z learned that the current approaches will not necessarily work tomorrow.

To discuss:  The challenges of Company Z supply chain and are all such systems destined to suffer similar growing pains.