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The Fashion Supply Chain
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Supply Chain Visibility
The ability of parts, components, or products in transit to be tracked from the manufacturer to their final destination. Greater visibility in the fashion supply chain helps in demand planning and risk management.
Fast Fashion
A business model that emphasizes rapid production and turnaround of high-volume, low-cost clothing. Fast fashion brands leverage efficient supply chains to quickly produce and distribute trendy garments.
Vertical Integration
The process by which a company takes control of several or all stages in the production and/or distribution of a product. For fashion companies, it means from sourcing materials to retailing finished garments.
Demand Forecasting
The process of estimating the future demand for products. Accurate demand forecasting in the fashion industry can lead to better stock levels and less waste.
Re-shoring
The act of bringing back to the country of origin a business process or production that was previously offshored. Fashion brands might re-shore to improve quality, reduce lead times, or to align with 'Made in' marketing strategies.
Value Chain
The full range of activities that businesses go through to bring a product or service from conception to delivery and beyond. In fashion, it includes stages like design, production, marketing, and distribution.
Lead Time
The time it takes for a product to be manufactured and delivered to the end customer. In fashion, reducing lead times can increase responsiveness to trends and reduce inventory holding costs.
Supply Chain Management (SCM)
The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer. In the fashion industry, SCM plays a critical role in coordinating the movement of raw materials to finished goods, ensuring timely delivery to retailers and consumers.
Logistics
The management of the flow of goods from the point of origin to the point of consumption. Fashion logistics ensures that clothing items are transported, stored, and delivered efficiently.
Ethical Sourcing
The process of ensuring that the products being sourced are created in safe facilities by workers who are treated well and paid fair wages. It's a growing concern for fashion brands aiming for sustainability.
Quick Response (QR)
A strategy used by retailers and manufacturers to quickly replenish stock based on consumer demand. In fashion, QR enables agility to market trends and reduces excess inventory.
Omnichannel Retailing
A multichannel sales approach that provides the customer with an integrated shopping experience, whether they're shopping online or offline. Fashion brands increasingly adopt this to improve customer buying experiences.
Inventory Management
The supervision of non-capitalized assets, or inventory, and stock items. Effective inventory management in fashion ensures product availability while minimizing overstock and markdowns.
Dropshipping
A retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, the fashion retailer purchases inventory as needed from a third party to fulfill orders.
Just-In-Time (JIT)
An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed for production. In the fashion industry, JIT can reduce inventory costs and waste.
Third-Party Logistics (3PL)
A third-party business that provides logistics services including warehousing, transportation, and distribution. Fashion companies often use 3PLs to outsource parts of their supply chain.
Circular Economy
A regenerative approach to the use of resources where waste and pollution are minimized. In fashion, this implies designing out waste and extending the lifecycle of garments through recycling and upcycling.
SKU (Stock Keeping Unit)
A unique identifier for each distinct product and service that can be purchased. In fashion, SKUs help in tracking inventory levels, sales, and product location in stores or warehouses.
Sourcing
The process of finding and evaluating suppliers for materials or products. In the fashion industry, sourcing affects cost, quality, and the ethical standards of the materials used.
Offshoring
The relocation of a business process or production to a foreign country. Fashion companies may offshore to reduce costs or access skilled labor unavailable in their home country.
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