Overview of the designer clothes industry
Globally, the demand for designer clothes is influenced by factors such as higher disposable incomes, the emergence of superstore culture, and growing dressing and fashion consciousness among urbanites. In addition, with the recent change in consumer behavior and the short life cycle of products that are being offered today, the demand for designer clothes has witnessed a sharp increase among the populace.
However, factors such as unpredictable market trends and impulsive buying behavior of the customer are to be given highest importance by the retailers to sustain themselves in the competitive market space. Despite the challenges mentioned above, the retailers of designer clothes are facing challenges in terms of:
- Sustainability: Today, environmental sensitivity has become an emerging issue in the designer clothes The search for new ways to incorporate more environmentally-friendly practices throughout the clothing industry’s production cycle has become more intense, and businesses have to adhere to strict guidelines to sustain themselves.
- Inventory levels: Controlling inventory is not a new issue in the designer clothes market, but the rules of the stocking game have changed based on the way consumers shop. Customer preferences also vary a lot; thus, speeding up inventory turnover requirements. As a result, suppliers have to make do with smaller orders placed by retailers and wholesalers to improve turnaround times.
Many such factors are compelling designer clothes manufacturers to leverage the use of supply chain management solutions. Supply chain management solutions help firms in the clothing industry space to quickly identify supply chain issues and provides quick solutions to help maintain customer satisfaction. These solutions also help firms gain better visibility into logistics operations; thereby, reducing a company’s overall transportation cost.
The Business Challenge and Journey
Client background: A leading retailer of designer clothes in the United States.
Client issue: The client wanted to achieve better visibility and control over spend across all brands, build capabilities to identify savings opportunities, and finally translate it to hard-dollar savings. The client also wanted to drive savings across categories such as IT/ telecom, construction, facilities management, store supplies, and marketing.
The supply chain management experts at SpendEdge conducted a comprehensive research and carried out discussions with prominent stakeholders in the clothing industry space to help the client achieve bottom-line benefits and improve process efficiencies.
Client journey: During the course of this supply chain management engagement, the designer clothes manufacturer was able to complete their project’s transformation program, spanning centralizing procurement, introducing new S2P processes, and creation of new policies.
Key questions answered in this supply chain management engagement
With the help of SpendEdge’s supply chain management solution, the designer clothes firm developed and executed communication and training customized to audience groups, along with videos, quick reference guides and user guides. The client also put in place new spend and savings reporting systems. This helped them achieve $110 million in savings.