06.23.08
Supply chain leaders in apparel, please stand up!
Well-known research firm AMR released their Supply Chain Top 25 last month. While many household names appear on the list, particularly in the personal technology and consumer goods sectors, the absence of companies in the department store and fashion categories is powerfully felt by loyal followers like me.
Kudos to Nike for making it three years in a row, but the air up there must be lonely! I wonder if the reason that more apparel companies don’t appear on the list is due to the high product turnover they experience? Many fashion designers produce 4 to 5 seasons of product each year, resulting in the one‑time production of many goods. Perhaps it’s difficult to achieve supply chain efficiency when you are constantly changing your product mix. Alternatively, it could possibly be that supply chains in clothing and accessories are highly inefficient, maybe because fall fashions are shown in spring, then marketed to buyers, then produced and shipped, then made available on the sales floor, creating an extremely loooong time from concept to consumer.
While I don’t claim to be an expert on why the list is highly tipped in favor of fast moving consumer goods, I do know that I still enjoy walking into a Dillard’s or Kohl’s store and finding a broad variety of clothes and footwear to choose from, and the fact that there are always such good discounts on the markdown racks. (So maybe the real reason department store supply chains don’t qualify is due to inventory planning issues?) Top 25 aside, I love a good bargain!
