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Content Good inventory management in supply chain companies achieves two objectives:  To ensure a ‘proper visual display,’ for an attractive offer that makes consumers want to buy (the right stock).  To have enough to cater for sales, that can be expected until the next delivery (enough of it).  Dr Goldratt, founder of the Theory of Constraints and Throughput Accounting, and the author of the title

The Open to Buy or OTB is a common concept in the fashion industry, that is used by buyers and retail managers to control trends in a proactive way. Their main goal is to optimise inventory levels while maximising profits. Open to buy is often used as a control measure that aligns orders to ensure

Content Examples of vertically integrated businesses that are thriving There are numerous examples of vertically integrated businesses and they include some of the highest-valued companies on the equities markets and some of the most successful fashion and sportswear brands. One famous example is Amazon. Although this business started with a simple ‘asset-light’ model, it gradually

Content The advantages of vertical expansion While horizontal expansion has serious advantages in terms of the economies of scale and scope, it is a high-risk strategy. It is a perfect example of putting all your eggs in one basket. In contrast, vertically integrated companies can be successful even in dire situations where other companies fail.

Content The strain of covid on retailers While the 2020-21 COVID 19 pandemic hasn’t been much fun, it has given us all the chance to re-evaluate our working methods and find new ways to succeed in challenging times. Despite considerable challenges in the past year, the light at the end of the tunnel is fast

Content   “Tell me how you measure me and I will tell you how I will behave. If you measure me in an illogical way, do not complain about illogical behaviour” – Eliyahu M. Goldratt  When we measure performance, we want to compare the actual output of something to a predefined ideal. A variance from the ideal should

Table of Contents Efficiency measures and cost-cutting is regarded a quick-fix tonic for ailing Key Performance Indicators, but they have left supply chains in the fashion industry addicted to a cycle of cheap production and unnecessary waste. Without investment in responsive and agile processes, many companies have been unable to adapt and cope with the

Table of Contents Being well-adapted is an advantage – but becoming too fixed in that adaptation becomes an existential threat when conditions change. A Responsive Supply Chain (RSC) is able to provide both the advantage of being well adapted (efficient), while retaining the flexibility to change quickly to new realities, thereby also being effective. Significant

Table of Contents Why Accurate Stock Forecasting Is A Top Priority Achieving the right stock level is a delicate balance, and there is a huge pressure to get it right. Despite being a top priority, forecasting often falls short, which results in avoidable losses and waste.The cost of inadequate inventory forecasting is a growth-killer, and

Last week, I attended a webinar, titled: Retail buying in uncertain times, aimed at multi-brand retailers of fashion and sporting goods. Multi-brand retailers buy from the brands and sell to consumers in a seasonal rhythm, where a season lasts roughly 26 weeks, including the sale period, where ‘everything must go’. The cash to cash cycle between concept and