Supply chain challenges in

fashion

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Course objectives

• Students will learn about different supply chain challenges.

• Students will learn about different tasks which required competency
to run a smooth supply chain.

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Supply chain challenges in fashion

• Supply chain management is a new concept, initially higher

management use to work for managing individual departments or
companies

• Supply chain management is a new “challenge” for management

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• For structural purpose, the challenges are separated into five tasks
for management.

• Mastery of effective supply chain management will require

competency in all five tasks.

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Supply chain challenges in fashion

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Task I: Designing Supply Chains For Strategic
Advantage

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• Creating the supply chains that should offer competitive advantage,
this framework follows a methodology that will produce a different
supply chain that will stand out from competitors.
• Many organizations pursue supply chain designs with the sole intent
of reducing cost, here we describe a way to apply market
segmentation and customer specifications to supply chain design.
Rather than simply trying to beat costs out of the supply chain

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• Certainly, products with superior features and design contribute
greatly. But innovation in the supply chain dimension is likely on the
same level as product design as a determinant of long-term success.
• So supply chain design has the power to extend the profitable life of
the product

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Structuring the supply chain –activity system

• A framework for building sustainable advantage based on a unique

set of well-linked activities.
• Task should be coordinated
• Closely identified
• Easily implemented
• A supply chain is a collection of activities and processes. These linked
activities are referred
“activity systems”

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Matching the supply chain to product type

• Matching supply chains to product types — recognizing that supply

chains should be designed with different objectives based on the
products they support.

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Techniques for coordinating new-product s

• Techniques for coordinating new-product development and supply

chain management.
• The approaches cover both existing and new product pipelines.

• From a supply chain standpoint, the introduction of a new product is

both an opportunity and a threat.
• Speed and efficiency supply chain’s that can add new product in the
same running supply chain with small modifications

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Application of an analysis tool, Quality Function
Deployment

• Application of an analysis tool, Quality Function Deployment(QFD), to

supply chain design
• -QFD is a structured approach to defining customer needs or
requirements and translating them into specific plans to produce
products to meet those needs. The “voice of the customer” is the
term to describe these stated and unstated customer needs or
requirements.

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• What segments does that company serve?
• What do customers in each segment want?
• How can that company satisfy those requirements?

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Task 2:Implementing Collaborative
Relationships

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Collaboration:

• Collaboration occurs when companies work together for mutual

benefit.

• The means by which companies within the supply chain work

together towards mutual goals by sharing
– Ideas
– Information
– Processes
– Knowledge
– Information
– Risks
– Rewards

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• Type of collaboration needed within the organization and outside the
organization.
• Any change in the supply chain must be accomplished through
people. People in the organization must live with the consequences
of any changes.
• The task also addresses garnering top management involvement,
implementation project structures, and organization of both the
change effort and the ongoing management of supply chain
functions.

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Task 3: Forging Supply Chain Partnerships

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• The success of strategic supply chain largely conditioned to the
partnerships among all participating enterprises.
• To unleash the advantage of complementary resources of each other
and for gaining differential advantage there is a need to have a
higher degree of coordination, interaction and collaboration among
all the supply chain participants, hence to create a partnering
relationship

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• Partnering relationship refers to that kind of
relationships where the foundation of relationships
is strategically stated for the achievement of long
term objectives with co-prosperity.
• Turning to partners can bring the benefits of “one-
stop shopping.” A larger volume of business
awarded to a single supplier is bargaining leverage
for discounts.

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Task 4: Managing Supply Chain Information

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• The information must be available in real time across the supply
chain and this can not be achieved without an integrated software
system for supply chain management.
• Supply chain members have to collaborate, sharing information for
improving customers satisfaction.

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• ERP(Enterprise resource planning)

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Task 5: Removing Cost from the Supply Chain

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• Costs will always be a focus of supply chain improvement efforts.
These efforts will be for both strategic and tactical advantage.
• “Cost management encompasses all (control) measures, that aim to
influence cost structures and cost behavior .
• The costs within the value chain have to be assessed, planned,
controlled, and evaluated.”

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• Partnership
• Bulk orders
• Vertical integrated approach
• Avoid wastage
• Proper handling and storage
• Use technology

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