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Vol 32 - No 05 - July/August 2006 Agile Supply Chain in the Fashion Business Leading fashion companies such as Gucci and Prada renew around 80% of their range each season, so they must develop several thousands of new articles each year. The selling period is quite short, and requires strict compliance with the fashion show calendar - with no possibility of running late in developing a new collection. Production planning takes place immediately after the fair shows, and there are very limited opportunities of re-assortment if demand is higher than expected. This can result in loss of sales on the one hand, or excess stocks on the other. The latter may have to be discounted on average by 30-40% less than the full price, or even scrapped. This paper is presented in three parts. First, we analyse demand characteristics in the fashion business. Then, we review the key steps involved in developing and launching a new collection. Finally, we explore the agile supply capabilities that fashion companies must develop in their supply chain in order to cope with volatility in fashion markets. We focus on development of agile capabilities as a key source of competitive advantage. Page number: 11 Word count: 4800 Related Topics: Customer relations management Forecasting Manufacturing resource planning Supply chain
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