Operetion management Assignment Example | Topics and Well Written Essays - 2500 words

Operetion management - Assignment Example This is especially true in the case highly fashion conscious and seasonal business of selling fashion wear merchandise. In this context the 'Quick Response' supply chain project of Jossey Menswear - a fashion retailer with more than 200 retail outlets is analysed to evaluate and critically comment on the scope of success of their project I improving the supply chain management. "More than ever before speed has become a source of competitive advantage. Competing on speed requires an organization characterized by fast moves, fast adaptations and tight linkages. .. Forming alliances is one of the most effective avenues for competing speed. The best example is the textile industry's quick response initiative, designed to improve the flow of information, standardize recording systems, and reduce turnaround time along the entire supply chain from fiber to textiles to apparel to retailing." - Roberta S. Russell, Bernard W. Taylor Operation Management: Edition IV (2003). pp 37. Seasonality - This is the main factor which necessitates the speed in the supply chain. Basically the fashion industry works on two seasons, Spring/Summer and Autumn/Winter, where supply decisions are conceived at least 18 months prior to the time the merchandise is supposed to be on the racks of the retail outlet. The various processes starting from the selection of design, selection of color trends and fabric trends for the next season are time consuming and in order that the garments reach the stores before the end of the season, there should exist an effective supply chain. Products are made according to a predetermined standard sizes and there is no time to revise the outfits once manufactured. This critical aspect in the supply chain movement sometimes delays the whole process of manufacturing resulting in the rejection of some garment lots being out of size specifications. Here again a team effort working in conformity to evolved standards will make the things move faster. Pricing-the determinant factor on the success or otherwise of a business venture is at the centre of all managerial decisions. This is particularly true in the case of the fashion retail business as any garments not reaching within the saleable window will naturally have to be sold at the end of the season at heavily discounted prices. Full price sales can be effected only when the merchandise reaches the stores and is available to the customer when they visit the store only once or twice in a year, which is a peculiarity attached to the fashion retail industry. The sale at full price is also determined by various other factors. 'Designers' collection' forms the foundation for the full price sales. Since designers work at a considerably advanced period before the actual sales takes place, they have to make intelligent guess work about the customer preferences in terms of deign, color and fabric which may sell well in a season. If the decisions on the collection designs are made right then the entire season may witness good full price sales. Getting the styles into the right retail