Become a Read and React Company and Accelerate Your Digital Supply ChainOctober 16, 2017
While some traditional fashion retailers and department stores are struggling, others are experiencing strong growth as they rewrite the rules of fashion retailing. The key to success? Mastering the “read and react” supply chain strategy.
Data-driven fashion companies, like Zara, continuously monitor or “read” sales data in order to “react” faster than any company in the industry – accelerating delivery of the products that are selling and shutting down production of any products that are stalling. The fashion industry has taken note, and companies are racing to transform their businesses with read and react strategies.
Barriers to a Read and React Strategy
Disconnected, siloed data is a huge problem throughout the supply chain. Fashion retailers must react to current sales trends and make operational and tactical decisions mid-season. Yet all too often, the critical stages in the supply chain – planning, development, sourcing, compliance, production, logistics and sales – operate as though they are separate business units.
To overcome these obstacles, fashion brands and retailers must connect global decision makers into a single digital supply chain that centralizes and shares information that originates in legacy PLM, ERP, logistics and other systems. Armed with real-time information, companies can answer two basic questions that are at the heart of the read and react strategy:
- What’s selling? How quickly can the company accelerate more products to the consumer, which will drive greater sales and profits?
- What’s stalling? How can the company minimize losses when products fail to meet sales expectations? How quickly can it reallocate materials and production lines to more profitable items?
It’s not enough to simply have access to data, though. Companies must “plan their reaction” by having a playbook of read and react strategies that guide their supply chain decisions, and next-generation technology that enables the digital supply chain.
Enterprise technology provides the foundation for the read and react model.
Powering the Digital Supply Chain
The Andromeda cloud platform enables the Digital Supply Chain. By synchronizing and sharing all mission-critical data throughout the digital supply chain, companies can react with speed and agility to rapidly changing market trends.
Andromeda enables read and react fashion development and retailing by allowing retailers and brands to:
- Sustain the product pipeline with continuous product development
- Position raw materials and manage commitments and drawdowns
- Practice postponement and just-in-time manufacturing techniques
- Ship direct-to-store and direct-to-consumer from the factory
- Expedite shipments for high-demand products
- Transfer products between stores and regions
To learn more about how Andromeda supports agile strategies that help your business become a read and react company, download NGC’s white paper, “Who’ll Be the Next Zara? Accelerating the Digital Supply Chain.”