Competitive Impetus for Lean Retailing with Technology as an Enabler Need for New Supply Channel Management Models & Practices Short Product Life Cycles Forecasting Uncertainty Inventory Risk
Small order quantities
Short lead times
Barcodes and Scanners
Product level identification
Shipping container identification
EDI & Internet
Automated Distribution Centers
Channel Structure: Traditional Retailer-Supplier Dynamics Apparel Plant 1 Apparel Plant 2 Apparel Plant n Retailer’s Warehouse Retail Store 1 Retail Store 2 Retail Store m Manufacturer’s Warehouse Low Frequency Retail Order Large Bulk Shipments Apparel Plant n Weekly Orders Apparel Plant 1 Apparel Plant 2 Retailer’s Distribution Center Retail Store 1 Retail Store 2 Retail Store m Manufacturer’s Distribution Center Channel Structure: Lean Retailer-Supplier Dynamics Small Replenishment Shipments
Difficulties of specification persist: Products, plant capabilities and components are difficult to characterize.
Apparel plants are small , with relatively low levels of sophistication. Implementation will be challenging.
The complexity of interaction among channel partners is relatively high.
Communicating about product design, product quality, plant capabilities, involves significant subjectivity . This type of communication will be harder to put on line.
Intermediaries provide domain expertise and local knowledge that will be hard to automate.
Deep knowledge is required to be effective
B2B Auctions, Exchanges, etc. Tightly coordinated supply chains Breadth of Relationships Depth of Relationships Where the hype has been Where many of the benefits lie Understanding the Value Proposition for Textile-Apparel-Retail B2Bs