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Inventory Challenges in the Apparel Industry |
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With few exceptions -- perhaps black socks -- apparel is fashion; and fashion means change, even for the replenishment side of your business. In what Bloomberg Businessweek declares as “the new abnormal” consumers are splurging on only a few luxury items and eliminating other spending entirely to pay for them. That coupled with a recession where it is more important than ever to catch sales declines quickly to avoid costly overstocks leaves today’s manufacturers, distributors and retailers faced with the most challenging market conditions in years.
Factor in long lead times for offshore manufacturing and the necessity to meet retailers' requirements for timely and complete delivery, often reinforced with penalties, and there you have the challenges of inventory forecasting.
With Demand Solutions highly accurate forecasting algorithms and dynamic time-phased replenishment plans, apparel marketers can reduce inventory, improve service levels, phase out obsolete styles and lines, and launch new products.
Our users report reductions in inventory and related savings in warehousing and shipping costs, improved service levels, enhanced size scale management, and ROI in just a matter of months.
Demand Solutions provides them with the ability to manage forecasts by Style, and to execute plans by SKU. They are in control of their supply chain, from finished goods to greige.
Our users want software which lets them apply their business wisdom, which is why Demand Solutions complements its sophisticated algorithms with the ability to incorporate human insight.
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Solutions |
With Demand Solutions supply chain planning software, apparel companies can:
- Generate, manage and collaborate on reliably accurate forecasts
- Analyze sales history and forecasts in units, revenues, margin and any other unit of measure
- Automatically respond to seasonality, shifting growth trends, and product mix transitions
- Objectively manage new product introductions
- Forecast by SKU at the customer level and summarize in total by SKU, customer, sales channel, region, product family, supplier, and more
- Keep score. Track, Report and systematically improve forecast accuracy and customer service performance.
- Manage product life cycle transitions from season to season
- Shape up your supply chain with time-phased visibility into forecasts, inventories, customer orders, in transit goods and
- Generate sourcing plans that keep inventories in sync with ever-changing forecasts and static capacity constraints
- Drive an effective Sales & Operations Planning process
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Case Studies |
Thailand's GoldCity Shoe, a manufacturer of globally distributed footwear, gives spreadsheets the boot in favor of Demand Solutions Forecast Management, streamlining its forecasting process for a complex apparel supply chain.
The manufacturer and marketer of reusable textiles, professional apparel, therapeutic support surfaces and disposable medical products wanted a planning tool that could help it reach both its immediate and long-term business goals.
Founded in 1910 by Jacob Golomb, a swimmer who wanted to produce swimwear that would last more than one season, Everlast dropped the swimming suits but became the best-known name in boxing.
More Case Studies >>
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