Using Supply Chain Analytics to Improve Decision MakingSeptember 20, 2019
The average adult makes about 35,000 remotely conscious decisions a day. And in the fashion retail industry, there are easily thousands of make-or-break decisions throughout the supply chain that must be made quickly and strategically. That’s a whole lot of decisions each day that are critical to the success of the company.
Fashion retailers must look for ways to gain actionable insights fast to help them make quicker, smarter fact-based decisions. By analyzing data, fashion retailers can move away from guesswork and spreadsheets to advanced analytics, accelerating the decision-making process and reducing risk across the entire supply chain network.
Let’s take a look at how a digital supply chain can equip fashion retailers with the analytics they need to make timely, relevant decisions.
Bring Together All Global Decision Makers
The connected digital supply chain overcomes disconnected, siloed, and slow-moving processes. It does this by bringing together all global decision makers into a single cloud-based digital supply chain that centralizes and shares information that originates in legacy PLM, ERP, logistics and other systems. It becomes the real-time system of record that unites disparate systems, processes and information into a connected digital supply chain that brings a new level of agility and speed to decision making.
Push Decision-Making Further Downstream
A flexible, responsive digital supply chain allows organizations to push decision-making further downstream; this concept of “postponement” – waiting until the last possible minute to make decisions – is central to lead time optimization. And it improves decisions, because the further into the production process, the more information companies will have and the better decisions they’ll make.
For example, there’s no way to accurately predict the latest trends a year from now. However, the further one is into the production process, the more information is available from fashion shows, social media, consumer trends, and point-of-sale and e-commerce data. By eliminating the silos in the organization and sharing information collaboratively, companies can design and produce closer to the trends and improve outcomes.
Respond Quickly to Sales Data
Boosting sales and profitability can be summed up with a simple formula: If something is selling, accelerate production and make more of it; if it’s not selling, cut the losses and stop production it because it’s cheaper than to continue. When goods are marked down, companies not only lose profit, they also take away floor space from goods that could be sold at full price.
Even a handful of poor-selling products can ruin overall profitability. With a digital supply chain, companies can respond to the latest sales data to ensure they’re producing the products your customers want.
React to Unforeseen Events
There’s no way to predict random events such as work stoppages, natural disasters, port closings and dozens of other events that can wreak havoc on production. The ability to quickly react is critical, and companies can only do that with a digital supply chain; if your company relies on spreadsheets, fax or email to communicate with overseas suppliers, you’ll lose critical days and weeks, crippling your ability to rapidly respond.
Make Good Decisions with NGC Andromeda®
NGC’s Andromeda Cloud Platform® allows fashion retailers to make quick, informed decisions regarding their production pipeline. Instead of siloed and disparate information, Andromeda gives transparent access to up-to-date information, allowing retailers to make better decisions and produce more units of a best-selling style rather than continuing to produce a product that isn’t selling.