Globalization has made the apparel and footwear industrymore challenging than ever. Many companies that used to manufacture, today alsodesign, source and distribute. There is greater competition, consumers are muchmore demanding and distribution channels are shrinking. Consolidation is havingan impact on nearly every aspect of the marketplace. In 1980 there were 200different department store nameplates in the United States. Today, that figurehas dwindled to just 17.


The industry has become increasingly consumer anddesign-driven as fashion trends change overnight. Consumers demand new designs,greater choice and expect immediate availability in a wide range of colors andsizes, which has led to even shorter product lifecycles and larger numbers ofSKUs for companies to manage. Global sourcing is common, supply chains areoften complex and lead times long. High, on-time delivery performance iscritical and the seasonal nature of many products and collections increases therisk of inventory exposure.


The defining line between retailers and suppliers has becomeblurred. Suppliers are moving into the retail sector, and retailers are takinggreater control of the supply chain. As a result, responsibility forstore-ready inventory is shifting up the supply chain.


In addition, many brand owners are opening retail stores. Ifthe right product mix is not in the store at the right time, it results in lostsales opportunities, damage to the brand image, low sell-through rates onproduct lines and ticket price markdowns, which are often necessary to shiftmerchandise and minimize obsolescent inventory. All of these things squeezemargins.


So in order to gain a competitive advantage, the firmmanagement of your end-to-end supply chain is essential. As a result yourdemand and production planning will become increasingly critical and morecomplex. And a wrong decision can have major ramifications.


Almost every fashion company has the opportunity to tap intoand use the same source of supply as its competitors, at a similar cost, withsimilar quality and similar delivery terms. This can mean littledifferentiation in the merchandise your company sources. And for brands, designcachet is particularly at risk because of the ease and swiftness with whichyour signature look can be copied.


So how do you compete in the future? How can a fashioncompany create distinction? The answer is greater customer intimacy. This isachieved by providing a unique experience that meets the wants, needs anddemands of your customers. Customer intimacy is the new mantra fordifferentiating your merchandise and service proposition. To competesuccessfully you need to understand and service your customers' needs andwishes better than ever before.


With all these challenges in mind, investing in processesand technology, in order to achieve best-in-class performance, is moreimportant than ever. The platform to support process improvement and optimizeperformance is an enterprise resource planning (ERP) system. But remember, notall ERP vendors are equal, and no two ERP solutions are the same. At Lawson, wecreated this guide to help you make a more informed choice. It is by no meansdefinitive, but it will highlight the key factors youll need to take intoaccount to help you in your selection.


The fashion industry includes companies thatdesign/source/distribute, wholesale or manufacture apparel, footwear, hometextiles or accessories.



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Originallypublished in New Cloth Market; June 2009