Fashion retailing approach

The more conventional use of RFID technologies is in the identification of products in logistics operations this research, however, presented the use of RFID in crossselling and up-selling of fashion items. This new approach can bring maity benefits to fashion retailers in terms of business performance and customer services. 

One manufacturer has found a way to overcome the lead-time problems so as to be able to quickly respond to fashion. Benetton, an Italian apparel manufacturer makes sweaters in bulk, but delays the dyeing process until after initial sales figures are received from the retailers. In other words, colour choices are made after the manufacture. This approach has increased the cost of production by 10 per cent but has resulted in improved forecasts, less surplus stock and due to quick response to customer demand higher sales which has more than compensated for the inCTease in production cost. Major retailers are responding to challenges of lean and agile supply chain (see Chapter 13) as the following case example of Tesco illustrates. 

Build inventory of high-demand or predictable-demand products When most of the products a firm produces have the same peak demand season, the previous approach is not feasible. In such an environment, it is best for the firm to build products that have more predictable demand during the off-season, because there is less to be learned about their demand by waiting. Production of more uncertain items should take place closer to the selling season, when demand is more predictable. Consider a manufacturer of winter jackets that produces jackets both for retail sale and for the Boston police and fire departments. Demand for the Boston police and fire jackets is more predictable these jackets can be made in the off-season and stocked up until winter. The retail jackets demand, however, will likely be better known closer to the time when they are sold, because fashion trends can change quickly. Therefore, the manufacturer should produce the retail jackets close to the peak season, when demand is easier to predict. This strategy helps the supply chain synchronize supply and demand better. 

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