trends in apparel supply chain management
Post on 19-Jan-2016
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Trends in apparel supply chain management
Supply chainSupply chain consists of all
the parties involved directly or indirectly in fulfilling a customers requirement
Management of all these parties in order to get maximum efficiency and profit is called SCM
Supplier
manufacturer
retailer
whole seller
consumer
Key SCM Concepts
Example: P&G supply Chainc
Timbermanufacturer
Papermanufacturer Packaging
P&G or other manufacturer
Wal-Mart or third party Wal-mart store
Chemical manufacturer Plastic producer Consumer
Internal supply chain
Textile value supply chain
Effective Supply ChainWhen is Supply chain Effective? management of Products Information fund flow
ToolFor effective management of information, products
and funds there are certain tools which are evolving in SCM:
RFIDCPRF(Collaborative Planning, Forecasting and
Replenishment")Quick responseVMIEDI(Electronic data interchange)VIC(voluntary interindustry commerce standard)
RFID
“Radio-frequency identification (RFID) is the use of an object (typically referred to as an RFID tag) applied to or incorporated into a product, animal, or person for the purpose of identification and tracking using radio waves. Some tags can be read from several meters away and beyond the line of sight of the reader.”
RFID
RFID tags contains silicon chips and an antenna that can transmit data to a wireless receiver
There fore in RFID there is no requirement to close the product and scanner as like in Barcode scanner can read the product from quite a distance
workingMost common method to identify a product using
RFID is to store an ID or a serial no that identify a specific product along with other information, on a tag which is a small microchip connect with an antenna
Antenna enables the chip to transmit the information contains to a reader
Reader convert the information in digital form with the help of a supporting software
Difference between RFID and barcodeBarcode are scanned manually and read individually
In case of RFID it’s a small object similar to a adhesive sticker which can be easily attached or incorporated with in the product
RFID can give the exact location of the particular product which is missing in barcode
RFID TagsActive tags
Passive tags
BenefitsImproves inventory managements
Improve customer service
Boosting customer loyalty
Product security
Exhaustive information about product
VMI----- vendor managed inventoryVMI is an integrated approach where the inventory at
the distributor or retailer end is monitored by supplier
It optimize the supply chain performance in which the manufacturer is responsible for inventory management for their retailer
ModelIn VMI The manufacturer receives an electronic data
regarding sales and inventory of retailer
The manufactures can view every item which has been sold or remain in the store and true sales point
Under VMI the manufacturer generates the order not the distributor but it does not change the ownership of the product
Benefits to manufacturerLower inventory investment
Better scheduling and planning
Better market information
Closer customer ties
Benefits to retailerLess stock out with higher inventory turnover
Lower administrative replenishment cost
Lower inventory cost
Less inventory in channels
Benefits to retailerLess stock out with higher inventory turnover
Lower administrative replenishment cost
Lower inventory cost
Less inventory in channels
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