An Assessment of the Organization of Demand Supply Chains in the Fashion Industry

Shahriare Mahmood and Pekka Kess
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Shahriare Mahmood: University of Oulu, Finland
Pekka Kess: University of Oulu, Finland

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Abstract: Manufacturing companies have a plethora of methods through which to build and manage their demand supply chains (DSCs). This study aims to assess how retail brands in the fashion industry have organized and managed their DSCs. Both trendy and regular product based retail brands were included in the study. The paper is based on a literature review of apparel supply chain management and analyses the demand process of leading fashion brands. Textile and apparel processing stages associated to DSCs were also studied. The review identified that the degree of fashion sensitivity adopted by the retail brands influences their supply chain strategy. Manufacturers dealing with fast fashion operate a rapid response and flexible supply chain, whereas efficiency is key for less fashionsensitive brands. This study assesses the DSCs of retail brands for which data is available in journal articles, associated companies’ web sites, and web resources related to the textile industry. DSCs classified by other basis than fashion sensitivity can be compared. It demonstrates the DSC characteristics of retail brands, allowing the findings to be exploited by other industries to analyse and further develop their DSCs. Further, textile and apparel producers may thus obtain valuable insights regarding the structure of retailers’ DSCs. The findings may also prove useful for retailers less sensitive to seasonality but seeking a competitive advantage through the rapid supply of products. The complex structure of the textile and apparel supply chain is still a concern in coordination of the DSC. This paper provides insights on the demand-supply network contributing to the achievement of better coordination.

Keywords: demand supply chain; fashion industry; retail brand; fast fashion; fashion sensitivity; apparel industry (search for similar items in EconPapers)
Date: 2015
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