Quick Response Logistics

Sreenivas N.S.

School of Management Studies

CUSAT, Kochi - 22
E-mail:sreeni.ns@gmail.com

Abstract: The concept of JIT has been transferred to the world of Logistics, and this has resulted in
the new concept of “quick response logistics”. The basic idea behind QR is that in order to reap the
advantages of time based competition; it is necessary to develop Logistics systems that are equally
as responsive and effective. QR is about ensuring the right product is in the right place at the right
time Essentially the logic behind QR is that Demand is captured in as close to real-time as possible
and as close to the final consumer as possible. All this has been made possible by the
development of information technology and in particular the rise of electronic data interchange
(EDI), bar coding, the use of electronic point of sale (EPOS) systems and laser scanners etc.

Key Words: Quick Response, EDI, RFID, ERP, CRM, CPFR

1.0 INTRODUCTION

1.1. General Information

The term Quick Response (QR) was coined in the United States in 1985 when Kurt Salmon
Associates (KSA) recognized deficiencies in the fashion supply chain. According to KSA, only 11
weeks out of the 66-week lead time in the pipeline are spent on the actual processes (value adding
time / horizontal time), and the rest (non-value adding time/vertical time) are wasted in the form of
work in progress (WIP) and finished inventories at various stages of the complex system. The
resultant losses arising from this were estimated at US $25 billion, due to stocking too large an
inventory of unwanted items and too small of the fast movers.

In response to this situation, the American textiles, apparel and retail industries formed the VICS
(Voluntary Inter industry Commerce Standards Association) in 1986 as their joint effort to
streamline the supply chain and make a significant contribution in getting the in-vogue style at the
right time in the right place with increased variety and inexpensive prices. This is done by applying
an industry standard in information technologies (such as bar-codes, EDI, shipping container
marking and roll ID) and contractual procedures (Lowson et al, 1999; Ko, Kincade and Brown,
2000; Giunipero et al, 2001) among the supply chain members. Not only is QR an IT-driven
systematic approach (Forza and Vinelli, 1996, 1997, 2000; Hunter, 1990; Riddle et al, 1999) to
achieve supply chain efficiency from raw materials to retail stores, it is also a win–win partnership in
which each member of the supply chain shares the risks and the benefits of the partnership on an
equal basis to realize the philosophy of ‘the whole is stronger than the parts’.

QR, in principle, requires the traditional buyer–supplier relationship, which is too often motivated by
opportunism, to transform into a more collaborative partnership. In this QR partnership, the
objectives of the vendor are to develop the customer’s business. The benefit to the vendor is the
likelihood that it will be treated as a preferred supplier. At the same time, the costs of serving that
customer should be lower as a result of a greater sharing of information, integrated logistics
systems and so on (Christopher, 1997; Christopher and Juttner, 2000). Thus, partnership among
the supply chain members is a prerequisite of QR programmes. QR’s ultimate goal, nonetheless, is
to give customers the savings that are gained through the initiative. The last, and perhaps one of
the most important tenets of the original proposition of the QR concept is that QR is a survival
strategy of the domestic manufacturing sector in the advanced economies against competition from
low cost imports.

In the case of the United States, the QR initiative was expected to make a considerable
contribution to the Pride with the USA campaign, which promoted the excellence of US-made
products to American consumers, who had already been familiar with inexpensive imported casual
clothing. With the basic fashion category, relatively steady demand is a feature of the market,
therefore the US-born QR concept places much focus on the relationship between retailers and
apparel manufacturers. The eventual benefits for both parties are detailed in Table1.

Table 1 Retailer and Supplier QR Benefits

Retailer QR benefits Supplier QR benefits

Reduced costs Reduced costs
Reduced inventories Predictable production cycles
Faster merchandise flow Frequency of orders
Customer satisfaction Closer ties to retailers
Increased sales Ability to monitor sales
Competitive advantage Competitive advantage

2.0 Most common mistakes being made today to achieve quick response in
logistics.

2.1. Order Processing

Quick Response, to many people means doing everything quickly to ship the customer’s order.
Quite often people begin with improvements to order processing, believing customer orders must
be processed quickly for them to be shipped quickly. It is very common for order processing to be
automated using Electronic Data interchange (EDI). Often companies upgrade their order
processing system to improve quick response performance. Unfortunately the effort to automate
the current process has minimum benefit toward reaching the goal of quick response. What
operations needs is advance notice of what the customer is about to order so that it can be made
available when he orders it. A quicker transfer of a customer order or a new order entry system still
leaves operations with the reed fill the order from an inventory or from a very flexible manufacturing
operation. Inventory built in anticipation of future orders relies on the accuracy of the forecast
because there is no such thing as an accurate forecast failure in achieving quick response is
almost guaranteed. Another approach often taker is to make manufacturing more flexible using the
latest quick setup or charge over techniques. Until operations is flexible enough to meet any
customer demand, there needs to be an alternative strategy. The best alternative strategy
companies have found is to re plan frequently making small changes often as customer demand
becomes known.

2.2.Forecasting
Some of the most common approaches used to develop a sales forecast do nothing to support
quick response. Here are three of the more common mistaken approaches used in industry today
1. Aggregate forecasts
A common approach is to develop an aggregate forecast for the business and then to use
historical or projected percentages to calculate detail forecasts, Unfortunately customers
buy what they want and not necessarily what is budgeted. A budget forecast is good for
budgeting but it is not good for logistics forecasting. Logistics forecasts must identify by
stock keeping unit what is expected to be sold.

2. Computer aided forecaster.

A second very common approach is to use a computer to generate a forecast and then to
have a person review and analyze the forecast. This is a way of using procedure to
change the forecast. This approach is very subject. It assumes forecasting is an art and
not a science. It also tends to encourage second guessing throughout the organization. If
you have to change the forecast numbers from the forecasting system. you need a new
forecasting system that people believe in.

3. Forecasts from field sales

The third common approach is to ask the sales people or key customers what they think
future sales will be for each item. Sales people and customers have many reasons for
purposely raising the forecast or lowering the forecast. For example sales people are
measured on sales and may give an optimistic forecast simply to encourage higher
inventories to protect against out of stocks, Sales people are measured against targets
and may purposely minimize the forecast in order to look good when actual sales exceed
forecast. If sales people do not purposely forecast too high or too low, the enormous task
of forecasting every item on a frequent basis will quickly take second priority to the main
priority of selling.
It is a fallacy that the best person to forecast sales is the sales person in the field. When business
is good sales people are not worried about forecasting sales and it is something "we need to get
around to". When business is poor, sales people are not worried about forecasting sales because
their main effort has to be to get more sales and the last thing they want to tell their toss is that they
are working on a forecast.

In fact, most common sales forecasting approaches are doomed for failure because companies
have defined the need for accuracy incorrectly. Specifically, how accurate will be defined later in
this presentation. A more accurate forecast is a good thing for companies but something more is
needed A closer look at many business operations reveals the need for better distribution inventory
planning.

2.3.Inventory Management
There are three common inventory mistakes

 Get it on order as soon as possible. The thinking is the sooner product is put on order the
sooner it is shipped, the more likely the distribution center will have product available to
ship to their customers. Unfortunately, it is more difficult to order product needed for future
months than for future weeks because it is more likely the forecast will be wrong the
farther out in the future sales are forecasted. The result is a lot of items on order and in
inventory and a lot of emergency orders to get what is really needed.

 Increase inventory on the hard to forecast items because they are more likely to be out of
stock. The logic is that hard to forecast items need additional inventory to protect against
forecast error. Unfortunately, carrying extra inventory on these items ensures there will be
a significant amount of slow moving inventory and a greater possibility for out of stocks
popular fast moving items. The reason this is true is that forecast error can be positive or
negative. The extra inventory on all the slow moving items will protect all of them against
positive forecast error and will leave half of them with excess inventory. To make up for
this extra inventory, lowering the inventory on popular items means when there is an out
of stock it a larger amount of sales that will be lost. The real objective is to minimize lost
sales dollars not to minimize the number of items out of stock.

 When there is an out-of-stock or an overstock, check the forecast accuracy. This would
make sense if the following problems were extremely unlikely: suppliers who shipped late
or who short shipped, inventory record errors, open order errors, inability to accurately
know what is in transit failure to communicate discontinued items or new products inability
to manage use up of the discontinued inventory before the new inventory is shipped to
customers.

3.0 Quick Response logistics.

The basic idea behind quick response (QR) is that in order to reap the advantages of time-based
competition it is necessary to develop systems that are responsive and fast. Hence QR is the
umbrella term for the information systems and the logistics systems that combine to provide ‘the
right product in the right place at the right time’. What has made QR possible is the development of
information technology and in particular the rise of Internet-enabled data exchange, bar coding, the
use of electronic point-of-sale (EPOS) systems with laser scanners and so on. Essentially the logic
behind QR is that demand is captured in as close to real time as possible and as close to the final
consumer as possible. The logistics response is then made directly as a result of that information.
A further feature in favor of QR systems is that by speeding up processing time in the system,
cumulative lead times are reduced. This can then result in lower inventory (see Figure 1) and thus
further reduce response times. In effect a ‘virtuous circle’!

Figure 7.8 Quick response system can trigger a ‘virtuous circle’ in logistics
Rapid technological developments, shorter product life cycles, and increased customer
expectations have reshaped how business operates. To survive, it is essential for the firms
nowadays to be able to meet the ever changing business situations. Companies need to
collaborate with the lower and upper echelons in the supply chain to be able to compete since they
have exhausted most of the opportunities to improve internally. With the ever more fragmented
customers, companies also need to be able to react quickly to customer’s demand and changes.
Supply chains simply must be more efficient and effective so that goods, funds, and information
can travel fast. Handfield and Nichols (1998) estimated that the costs of the flow of materials
through the supply chain are approximately 75% of the total cost. Companies have for long been
relying on quick response (QR) logistics to deal with various customer’s demand and changes.
Inefficiencies in the supply chain could lead to extra inventories and unnecessary production and
long delivery lead times, which may result in lower profit margins and customer satisfactions. QR
logistics is aimed to minimize production and delivery lead times. QR is based on a combination of
the just-in-time (JIT) and Information Technology (IT) systems (Birtwistle et al. 2006). Unlike lean
concept, which is suitable when demand is relatively stable and customer requirements are more
uniform,QR concept is suited well when demand is volatile and customer requirements are more
varied (Christopher and Towill 2001). The impact of successful QR in certain industry such as
apparel industry could be substantial (Choi et al. 2006).

Mohr and Nevin (1990) described communication as the glue that holds together a channel of
distribution. To manage communication flows effectively and efficiently, we need to successfully
identify, analyze, and coordinate the interactions among the entities. A study done by the National
Institute of Standards and Technology (NIST) found that poor data integration in the supply chain is
costing manufacturers billions of dollars each year (NIST 2004). It is clear that an effective
coordination throughout the entire supply chain will significantly increase the firm’s capability to
compete in the market place. SCM systems should be able to facilitate the synchronization of the
entire supply chain as they can assist a firm in integrating internal business processes within the
corporate boundary so that all internal function areas can operate in synchronization (Tarn et al.
2002).

Information is crucial to the performance of a supply chain because it provides the basis on which
decisions are made. The same goes for QR program. QR strategies are dependent on building
long-term relationships, sharing information and investment in technology and facilities with
suppliers (Birtwistle et al. 2006).A successful QR system has to quickly catch the information from
day-to-day transactions, and hence needs to consider IT and non-IT solutions and procedures to
improve knowledge sharing, storage, delivery, and application (Lo et al. 2008). Therefore, IT
strategy plays two important components in QR logistics, namely to facilitate and maintain efficient
and timely information sharing across the supply chain. Supply chain’s success would then be
dependent on the accuracy and velocity of the information provided by the supply chain members.

Effective information systems allow not only the collection of data across the supply chain, but also
the analysis of decisions that maximize supply chain profitability. Gunasekaran and Ngai (2004)
argued that it is not possible to achieve an effective supply chain without IT, as it enables the
management and exchange of information as well as the integration of the trading partners along
the supply chain.
The primary function of information technology in the supply chain is to seamlessly link the points of
procurement, production, and delivery. This gives a significant benefit to the firm by greatly easing
the ability to share information (such as point of- sale data, inventory, forecast data, order change,
and sales trends) in a relatively quick and inexpensive manner. For example, with the adoption of
EDI, web service, service-oriented architecture (SOA), RFID, etc., the supply chain partners can
communicate and conduct business with downstream and upstream partners electronically, and
thus realize zero information latency and full supply chain visibility. This also allows planning,
tracking, and estimating lead times based on real-time data.
These improvements in turn help upstream partners to respond to the downstream partner’s
requirements quickly and enhance value adding services to customers (Au and Ho 2002). All these
efforts are expected to streamline, integrate, and speed up the business processes from production
to delivery.

4.0 Recent IT Developments and Their Impacts on QR

Popular information systems that have had a significant impact on the day-to-day supply chain
operations include electronic data interchange (EDI) and point of sales (POS), RFID (radio
frequency identification), enterprise resource planning (ERP), customer relationship management
(CRM), and collaborative planning, forecasting, and replenishment (CPFR). The following
subsections detail on how each of these developments has affected QR performance.

4.1. Electronic Data Interchange and Point of Sales

Electronic data interchange (EDI) software is designed to automate inter organizational
communication and thus improve the effectiveness of QR program. EDI is the use of standard
electronic formats for the creation, transmission, and storage of documents, such as requisition,
quotation, purchase orders, and invoices (Owens and Levary 2002). According to Giga Research,
88% of larger enterprises used EDI for supply chain communications because of the fewer errors
and lower cost per transaction over manual processing methods and increased efficiency of
processes. EDI connects the databases of different companies.

For example, order placed by a company is transmitted directly from the company’s system to its
supplier’s system. Supplier’s system then transmits the billing information directly to the ordering
company’s system.
In supply chain management, EDI is a means of sharing information among all members of a
supply chain. Additionally, shared databases can ensure that all supply chain members have
access to the same information, providing visibility to everyone and avoiding problems such as the
bullwhip effect. Moreover, EDI system contributes to cutting lead times by reducing the portion of
the lead time that is linked to order processing, paperwork, stock picking, transportation delays, and
so on.

POS, on the other hand, is an integral part of EDI system. POS data transfer system provides a
distributor/manufacturer with real-time information on what is selling at the retailers. Weber and
Kantamneni (2002) examined the benefits and barriers of adopting POS and EDI in retailing
business. They concluded that the retail managers see the adoption of POS technology as an
operational and tactical decisions, while the adoption of EDI technology as a strategic decision.
Retailers, on average, carry 2 months of inventory of their suppliers’ products (Aiyer and
Ledesma 2004). At that rate, companies must look at more accurate and efficient ways to create
reliable forecasts and manage inventory in the system. POS data are viewed by many as the
answer. The major benefit of using POS data is that it reflects the true sales. This leads to a more
efficient inventory replenishment, which ultimately leads to customer-driven replenishment (CDR).
POS also allows companies to employ more responsive and real-time pricing strategy.

The Beer Store, for example, is using POS data to automatically alert their system to modify their
pricing for in-stock brand or package configuration of beers when particular item is out of stock
(Gentry 2004). Ko and Kincade (1997) studied the impacts of various QR technologies on
time/availability, store environment, and value-added service for apparel retailers. They found that
POS improves the retailer’s performance although the effect is being moderated by the size and
type of the store.

4.2. Radio Frequency Identification

One technology that will increase a firm’ supply chain visibility is radio-frequency identification
(RFID). RFID is a wireless technology that identifies objects without having either contact or sight of
them. RFID is basically a chip bearing a unique serial number affixed to, for example, a container, a
pallet. The reader receives a signal from RFID tag carrying the item’s serial number, which logs the
item’s location and time in an online database, creating a detailed history of each item’s movement.
The data obtained from RFID could be fed directly into ERP system, allowing company to track and
operate on a real time basis. The tag of RFID can be active, passive, or semipassive. Active tag
broadcasts information and require a power source, while passive tag just responds to queries
without power source. SAP and PeopleSoft (now Oracle) had made a significant investment to
modify their existing system software for RFID to prepare applications for collecting more data
more frequently (Bacheldor 2004).

Firms are expecting RFID to bring improvements on inventory status, tracking and management of
assets, and responsiveness and customer service. The technology is deemed to be so important
that some large retailers require their vendors to employ RFID. In 2003, chain store giant, Wal-
Mart, decreed that its 100 leading suppliers should all be RFID equipped by January 2005 (Holland
2004).

Chow et al. (2007) reported an integrated logistics information management system case study
among supply chain players. They found that by integrating RFID and IT companies can
significantly improve their logistics functions performance. They showed that companies can
reduce their average inventory by 27%, out-of-stock frequency by 68%, and average delivery time
by 32%. de Kok et al. (2008) studied the impacts of RFID implementation in the situation where
inventory is sensitive shrinkage. They found that break even prices of the RFID implementation are
highly related to item’s value, shrinkage percentage, and remaining shrinkage. With the
implementation of RFID technology, the visibility and velocity of a supply chain can be dramatically
improved; furthermore, with the combination of RFID and POS data, the true demand information
can be determined since the retailer can estimate the lost sale (Simichi-Levi et al. 2008).
4.3. Enterprise Resource Planning
An enterprise resource planning (ERP) system is a broadly used industrial term to describe the
multi-module application software for managing an enterprise’s suppliers, customers, and
functional activities. ERP software systems are designed to link and integrate the various business
processes of enterprises. An ERP system uses a single database and a common software
infrastructure to provide a broader scope and up-to-date information. This allows the ERP system
to integrate all aspects of the company, such as financial, production, supply, and customer order
information. Companies can keep track of materials, orders, and financial status efficiently and
coordinate manufacturing and inventory across different locations and business units. The industry
views ERP system as a tool that enables them to have higher efficiency by enabling them to move
financial and other data speedily from one department to another department (Holt 1999). ERP
software can also be used to integrate internal business activities of a multi-facility organization, or
enterprise, to ensure that it was operating under the same information system to achieve better
coordination across the supply chain.

Furthermore, ERP software can also support operations functions such as production scheduling to
enable company to quickly respond to customers’ demand, high quality of product, reliable delivery,
etc. (Metaxiotis et al. 2003). For example, Microsoft Window’s client based and object-oriented QR
tool was designed to “augment ERP applications with more precise and constraint-based
scheduling of both materials and resources” (Hickey 1999).

ERP systems have continued to evolve in the twenty-first century. ERP systems are also designed
to take advantage of Internet technology, and users are able to share information and communicate
via the Internet. By the second generation of ERP (ERP II), vendors had learned to create Web-
centric systems by consolidating data and allowing dynamic access from various clients. One of the
latest developments is the integration of e-business capabilities to use the internet to conduct
business transactions, such as sales, purchasing, inventory management, and customer service.
ERP systems provide vast amounts of data for analysis. Software vendors have developed
powerful new analytic tools and applications that capitalize on ERP’s central repository of data.
Examples of such software systems are customer relationship management (CRM), supplier
relationship management (SRM), advanced planning and optimizer (APO), and collaborative
commerce (CPC).

ERP aims to improve internal efficiency by integrating the different parts in the organization. The
proliferation of ERP systems forces companies to provide communication and information flow
between supply chain agents, overcoming natural boundaries (Tarn et al. 2002). Therefore,
integration of ERP and QR is a natural and necessary process as their successes rely on a very
similar framework that is the accuracy and velocity of the information flow. Actually, ERP systems
help support a variety of QR manufacturing by providing real-time information access, improving
responsiveness and shortening lead time along a supply chain. The future of
ERP is to improve the supply chain and foster greater collaborating across many different locations
and business units, and hence more responsive QR.
4.4. Customer Relationship Management

Customer relationship management (CRM) plays a very important role in QR program as it

connects company with its customers. CRM is software that plans and executes business
processes that involve customer interaction, such as sales, marketing, fulfillment, and customer
service. CRM allows real-time order submissions, which results in an improved customer service.
As soon as a customer places the order, the system confirms adequate inventory, verifies order
receipt, and goes immediately to the warehouse for delivery. CRM changes the focus from
managing products to managing customers. In CRM, all data go into a data warehouse, where it is
analyzed for hidden patterns (called data mining) and from which predictions of future behavior are
made.

CRM allows firms to integrate database marketing strategy to their organizations to achieve better
customer segmentation (Weinberger 2004). In addition to collecting and analyzing data, CRM
provides decision support for forecasting demand, demand management, pricing products and
services, quoting order delivery dates, and planning for customer service needs. The apparel
retailers can use data mining to analyze POS data, and then to forecast size, color, and
consumer’s purchasing habits (Suzette 1998).

4.5. Collaborative Planning, Forecasting, and Replenishment

Collaborative forecasting and replenishment (CPFR) is a web-based standard that empowers
vendor-managed inventory and continuous replenishment by making joint forecasting (Simchi-Levi
et al. 2007). It enables firms in the supply chain to plan, forecast, and replenish inventories in a
collaborative manner. With CPFR, parties exchange electronically sales trends, scheduled
promotions, and forecast. This allows the participants to coordinate joint forecasts by working on
their forecast differences. Sharing forecasts with other partners can result in a significant decrease
in forecast errors and inventory levels. As a result, CPFR could take QR to the next level (Margulis
1999). Latest CPFR model comprises four major iterative collaborative activities: strategy and
planning, demand and supply management, execution, and analysis. Internet-based CPFR can
coordinate the requirements planning prices among upstream and downstream supply chain
partners for demand creation and order fulfillment activities, and thus to shorten the lead time
(Bowersox et al. 2010).

5.0 Current position of QR in different industries

It is understandable by all sectors that PoS information should be made the entire system in such a
way that it seems to be consumer-driven. Now, it is the EDI that is the condition of running a
business. So, most vendors are trying to acquire EDI technology. But, the big manufacturers are
already equipped with it. Reduction of inventory at the departments and stores is the forceful
reason behind this movement. Garments of every seasonality will be affected if EDI is employed.

As PoS data is supplied to the vendor with accuracy, he is the responsible individual for the
replenishment of basic goods. A large complexity is apparent between the interface of EDI and
merchandise (both seasonal and fashion). In order to full implementation of QR for seasonal goods
it is required to re-estimate the reorder procedures in addition to orders, invoices, and advance
shipping notices. This will lead to formulate the exact volume and to combine the SKUs on the shelf
both in season and out of season. It will maximize customer service and also diminish the
markdown effect.

Fashion goods are less affected by QR than the basics or seasonal products. In spite of improving
the forecasting and order accuracy of styles and colors by shortening pipe lines, there is lacking of
time for correcting design or buying errors during the selling season. Previously, it was anticipated
with QR that the domestic time narrowing would assist to offset offshore cost advantages but
practically it was not happened.

6.0 Future of QR THAT MAY CHANGE the future of supply chain

6. 1 Short term
It is thought that within the next one to two years, the industry will be pushed to extend the use of
EDI to all producers, retailers and other suppliers for establishing better linking among them. Value
Added Networks (VANS) may have a vital role in resolving problems lying in the QR supply chain
with the technical expertise to achieve modification among the suppliers. The competitive
environment among the VANS will intensify the trafficking of electronic data. It will help to establish
a price-commodity business. In the future, VANS will supply quality information products with high
delivery speed. The present training approach to software and solutions will have to be altered to
an educational approach for proper utilization of VANS.

By the way, there must be a champion ownership in the supply chain through the value added
applications to support the proper application of VANS. This type of ownership will be needed more
if the new coordinating technologies are not able to open the door to a different kind of competitor
who will blend computers and telecommunications. VANS are offering different software packages
such as, the bar-code detector which is very much helpful to reduce UPC errors. The lessening in
retail inventories is arising problems for both the short and the long term. The reason of the
problems is not understood properly. But development is going on to solve the problems and
contribution to retail profits has already been obtained. So, the idea of an information field should
be employed as it will be more and more vital as QR widens in future.

6.2. Long term

It is really very tough to assume about the advancement of QR over the next five-plus years though
the QR paradigm has become more and more clear and a number of proposals have already been
taken into action. If the retailer can know the methods to balance lead times, stock outs and vendor
lead times, he will be able to inspect the end-of-season markdown mix of seasonal goods with its
margin loss. He will also be able to set up processes for re-estimation of demand and the correct
reorders.

The manufacturer/ retailer systems will have to use reliable PoS data so that the industry can be
attached into the very complicated up-stream systems to support the demand-activated production.
Strategic mechanism will be required to increase the rate of acceptance of EDI in all industries.
7.0 QR and Value Chain Management
QR plays a vital role in value chain management. It helps to link the supply side with the demand
side efficiently as follows:

 The buyer-seller relationship is more prominent with the connection between distribution
and purchasing.
 QR offers higher production, efficient packaging & proper distribution with quality in
inventory management. The producers offer to supervise cautiously the customer’s
inventory levels to be able to execute future demand more proficiently. This may lead to
minimize the inventory costs of the customers.
 QR provides manufacturing with variety of planning. Consumer demand categories of the
products are observed by the supplier and the retailer. The delivery performance of the
suppliers has been increased due to this alliance which is expressed as CPFR
(collaborative planning, forecasting and replenishment).

Now, the supplier can supply the product to the end consumer directly, as for example, Dell is
selling computers in this way. It is followed not only by manufacturers-retailers but also by
designer-retailers who do not have own production plants.

8.0 Conclusions
The idea of QR was invented because of very high competition not only in the field of fashion
logistics but also in all business. QR culture introduces a typical enterprise with rising virtual
networking for strong relationships that are devoted to consumers. This furnishes the enterprise to
be remarkably flexible and miscellaneous ensuring agile commitment. The business must be
focused outwardly to form networks and coalition in-line with demand so that inter-organizational
information can be moved to set up a permanent relationship. Information shows the way of gaining
the knowledge of development, access, retrieval and sharing which can eventually encourage
escalating the flexibility in the organization. But a decentralized, unwrap network co-ordination with
integration and cross-functional processes marked with leadership styles should be employed so
that the management processes can be linked up with the involvement of QR strategy. It will lead to
proficient dealings of the total system with the environment. At the same time, it will help to build
the capacity for changes.

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12.0Logistics Glossary of Supply Chain Definitions,
http://www.derbyllc.com/2012/02/03/logistics-glossary-of-supply-chain-definitions/,
downloaded on 23.02.2013
13.0Supply Chain & Logistics Terms & Glossary ,
http://www.logisticsservicelocator.com/resources/glossary03.pdf, downloaded on
23.02.2013
14.0Defining supply chain management,
https://www.google.co.in/#q=quick+response+logistics+definition&hl=en&ei=RxcuUaG-
Go3irAeom4CACA&start=20&sa=N&bav=on.2,or.r_gc.r_pw.r_qf.&bvm=bv.42965579,d.b
mk&fp=8d6f5005fe1a0333&biw=1024&bih=625, downloaded on 23.02.2013
15.0INTERNAL LOGISTICS AS A PART OF SUPPLY CHAIN,
http://publications.theseus.fi/bitstream/handle/10024/3577/Tian_Ran.pdf?sequence=1,
downloaded on 27.02.2013
16.0Quick Response Solutions,
http://images.fedex.com/us/supplychain/casestudies/quick_response_Solutions.pdf,
downloaded on 27.02.2013
17.0Quick Response Manufacturing(QRM) as a Reaction of Production Logistics on
Cooperation with Retailers,
http://econpapers.repec.org/article/osibulimm/v_3a10_3ay_3a2010_3ap_3a185-197.htm,
downloaded on 27.02.2013
18.0Quick Response, http://www.libreriauniversitaria.it/innovative-quick-response-programs-
logistics/buch/9783642262920, downloaded on 27.02.2013
19.0Strategic Analysis of Logistics,
http://www.academia.edu/749208/Strategic_analysis_of_logistics_and_supply_chain_man
agement_systems_using_the_analytical_network_process1, downloaded on 27.02.2013
20.0 Review of well known logistics concepts adopted during last decade,
https://www.google.co.in/#q=quick+response+logistics+definition&hl=en&ei=FRguUb7xO
MbJrAf01YGwBw&start=30&sa=N&bav=on.2,or.r_gc.r_pw.r_qf.&bvm=bv.42965579,d.bm
k&fp=8d6f5005fe1a0333&biw=1024&bih=625, downloaded on 27.02.2013