Edith Head once famously said that “You can have anything you want in life if you dress for it”. With the fashion industry reaching a global value of around 3 trillion dollars, it seems that few disagree. However, all that glitters is not gold. That’s why, in this episode of LokadTV, we decide to shed light on the numerous supply chain challenges within the industry.
First of all, the lifecycle of a fashion product seems to be disseminated with a series of constraints, like MOQs, container shipments or the problem of the dispatch between the different channels - to name but a few. If we think about ultrafast fashion, the challenges are even bigger, considering that the lead times are often extremely short: less than a week from design to the shelf. In this video, we discover how technology can help us automate a series of time-consuming decisions.
We also talk about sales and pricing, which are an integral part of the fashion industry and one of its key challenges as well. Price elasticity is the main mechanism that brands use to liquidate their inventory at the end of a collection, but with millions of items spread over different channels, it requires a massive workforce. See how a Quantitative Supply Chain initiative can help you in dealing with this riddle.
Finally, we discuss how the items of clothing that a celebrity decides to wear can often result in stockouts. Can brands really forecast these ‘freak’ spikes in demand? How could a probabilistic approach take into account those statistical outliers? What about social media, especially Instagram? Are companies nowadays overstocking certain items in anticipation of what influencers will wear, and should this kind of marketing via platforms be taken into account in future stock management decisions? We debate these questions and more.