Fashion

 

Featured client //How to Optimize Fashion Retailer Supply Chains and Distribution Networks New Look


“Q actually paid for itself in five months.”

Download the case study HERE»

Maximizing performance in the fast moving world of fashion

The nature of fashion retailers’ supply chains and distribution networks often mean their ability to offer the right product, in the right size and color and in the right store is constrained. More than any other branch of retail, there is an additional challenge in fashion to ensure stores do not have overage at the end of what can sometimes be a very short selling period. Traditional fulfillment processes have been developed as a compromise between the financial and merchandising goals of the retailer and the operational constraints they face. It is a compromise that comes with a price.

The unfair advantage //

Unlike traditional solutions, Q is a truly dynamic and self-learning system that allows fashion retailers to better utilize limited available inventory to achieve higher full price sales and reduce the need for markdowns to shift excess stock towards the end of the lifecycle. Better sell through equals more revenue and margin.

Advanced performance awareness //

Q can provide early warning on products that are selling too fast, in which case a decision can be made to bring in replacement product early or reduce the stores that are carrying the product to those that can most profitably sell it at full price. Q can likewise identify a product that is selling too slow, in which case the retailer can try a price drop or extend the number of stores that are carrying the product to share the pain. By reducing the complexity of the decision-making process, Q also reduces workload for allocators.

Never lose a sale //

There is no need to set initial stocking levels and no need for pre-allocations. All inventory transactions are recommended by Q and a user can check or modify before execution. Management is by exception and workflow. This new approach is able, like no other before it, to identify and support the winners whilst diverting resources from the losers that drain profit from the business. A typical retail clothing business will lose about 15% of its turnover in markdown and perhaps 10% due to lost sales. If we assume a turnover of $300 million, then we are looking at a loss of $75 million. Reducing each of these figures by only 1%, adds $8 million to the bottom line. Being able to make that sort of difference to a business is worth a lot more than a second look.

LISTEN >> Spencer Maynard, Head of Stock Optimization at New Look discusses how to deliver a fashion forward supply chain and reveals insight as to how Q helps them achieve success.