Creating Value Through
Supply Chain Management

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Table of Contents Creating Value Through Supply Chain Management Presentation reflects joint research by Book information: www.stitchintime.org Our findings indicate… Proposition 1: The retail, apparel, and textile sectors are increasingly linked as a channel through information and distribution relationships. Proposition 2: For apparel manufacturers, the key to success is the ability to introduce sophisticated information links, forecasting capabilities, and management systems -- that is, supply chain management. Proposition 3: The assembly room can provide competitive benefits only if other more fundamental changes in supply chain management have been introduced. Three Levels of Coordination Three Levels of Coordination Three Levels of Coordination Proposition 4: Due to rapid replenishment requirements, the basic and fashion-basic segments of the apparel industry will prove critical to the North American industry’s long-term survival. Proposition 5: Even with full implementation of GATT, a viable apparel and textile industry can remain in North America, drawing on a range of production processes in the U.S., Canada, Mexico, the Caribbean, and Latin America. Impact of Effective Supply Chain Management In the short term …. Statistical Analysis Shows that Profits Grow with Greater Adoption of Key SCM Practices Impact of Effective Supply Chain Management In the medium to long term …. Internet capabilities will greatly accelerate the process Backdrop: Factors Influencing Supply Chain Practices and Sourcing Patterns Impetus for Lean Retailing: Examination of Contributors to Risk Apparel Industry Product Proliferation Grocery Industry: New Product Introduction PPT Slide Matching Supply with Demand: The Fundamental Challenge Drivers of Costs of Mismatched Supply and Demand Impact of Product Proliferation Blazer Size 43 Regular Length Mean = 1.0, CV = 1.0 Blazer Size 38 Regular Length Mean = 1.0, CV = 0.68 Blazer Size 42 Regular Length Mean = 1.0, CV = .55 Characterizing Risk Coefficient of Variation = standard deviation of demand average demand Sourcing Choices Product Proliferation Compounds the Problem How Much Variety Makes Sense? Retailers Manage Risk with Lean Retailing The Lean Retailing Model Manufacturers’ Response to Lean Retailing: Organizational Requirements for Effective Supply Chain Management Organizational Requirements for Effective Supply Chain Management, Cont'd Organizational Requirements for Effective Supply Chain Management, Cont'd Organizational Requirements for Effective Supply Chain Management, Cont'd. Organizational Requirements for Effective Supply Chain Management, Cont'd