Supply Chain Mindmapping

Mindmap for the Fashion & Luxury Goods Market new size ranges
creation of own seasons
rapidly aging population more buying power brand
upcoming middle class marketing differentiation
growing obesity collection first push
In the global fashion and luxury demographic changes long term
luxury market growth emerging-market cities secondly replenishment
goods market, ever-higher customer increasing urbanization complex campaign planning
shopping near workplace
local-offer customization short term competition
expectations, combined with
e-commerce whether
demographic and economic shifts, smartphone commerce showroom model
shops omni-channel buying choosing go-to-market model
are making it increasingly difficult shop-in-shop
flagship stores social shopping wholly-owned
to predict consumer behaviour and outlet stores ownership retail store
well informed customers sales high service franchise model
plan accordingly. Adequate demand celebrities level demanded on-shelf availability
vloggers image oriented customers higher safety inventory
planning and accurate inventory
smart shopping stabilized E.U. market difficult forecasting top-down targets
investments are key to successful changing markets channel allocation
growth in Eastern Europe
supply chain management in this emerging markets economic trends market impact on long-term capacity commitment
fast-moving industry. Supply Chain
import barriers
new legislation
Diagnose  
increasing protectionism
trends companies shortage fashion suppliers
embargos political unrest supply chain investments vs. ROI
Movement and NeoGrid, provider sanctions inventory investments
of a collaborative, demand-driven Google Glass resource misallocation
wearable technology currency exchange rates
supply chain management platform activity tracker
Bluetooth connectivity system integration
in the cloud, have therefore developed passive RFID in clothing 3D printing technological trends lack of resources IT portfolio management
store heat maps Plan best of breed
this mindmap to inspire fashion and requests for building apps
inventory scans beacons IT
luxury goods companies to become Review  
more in-memory planning personalized messaging
Plan   Big Data

more profitable and competitive. Cloud solutions easier to deploy systems better security needed strategic & confidential information
better IT tools
quick development of apps information storage on premise
in the cloud
source of origin product
no child labour ethics more need for training
traceability need for new skills
no bribery sustainability HR manage different KPIs
reduction of chemicals ongoing change management
energy consumption
act Fashion & Do
waste management carbon footprint reduction
Cradle-to-Cradle
re-usage Execute   Luxury Market R&D development of new fabrics
electronics in clothes
product performance
accurate order placing
Creators of the mindmap: promotional event planning EPOS retail data forecasting based on historical data
virtual item planning demand planning changing consumers
category/portfolio planning seasonality
visibility
improved service level guarantee on-shelf availability check replenishment
feelings-driven planning
market benchmarking assess competitors overstocks
uncertainty out-of-stocks
based on EPOS data scarce capacity
guaranteed on-shelf availability consumption-oriented planning
scarce material
signals based on demand manufacturing

SCM
collaborative in Far East
reduce overstock replenishment
reduce out-of-stocks Supply Chain no in-season production
Supply Chain economic factors
alerts before out-of-stocks true B2B collaboration
pull-based systems
Dynamic Buffer Management improvements challenges on-shelf availability
no EPOS data sharing
SUPPLY CHAIN demand-driven Vendor Managed Inventories suppliers balance stocks lack of collaboration visibility of campaigns
movement demand-driven distribution planning push-based systems
consensus planning poor insight into SKU levels
integrated Sales & Operations Planning overstocks
top-down & bottom-up understocks
no integrated supply chains
short and long-term true real-time information
demand-driven order management integration per category
portfolio management
transport documents logistics management on SKUs
track & trace
logistics in-house
strategic worldwide sourcing e-procurement outsourced

S U P P LY C H A I N M O V E M E N T, N o . 2 0 , Q 1 2 0 1 6
S U P P LY C H A I N M O V E M E N T, N o . 2 0 , Q 1 2 0 1 6

on-shelf availability manufacturer qualification
over/under stock levels
collaborative B2B
efficiency/sustainability
Mindmap manual
The fashion and luxury goods market is a dynamic supply chain. In this fast-paced world, where there is
industry by nature. On one hand, this market´s consum- also increasing pressure to reduce the carbon footprint,
ers are well informed thanks to social media and, in global fashion and luxury goods manufacturers have to
2 view of the emerging middle classes and the aging redesign their go-to-market strategy to meet demand in
baby-boomer generation, they tend to be wealthier a cost-efficient and sustainable way: Plan.
and, hence, have more buying power. On the other
hand, innovations such as wearable technologies are Fashion and luxury goods manufacturers are defin-
increasingly becoming a standard and technological ing their own seasons, which is making the planning
advancement means that better, easy-to-implement of campaigns more complex. The retail channels
IT tools are available to improve planning across the demand high service levels, while planning is becom-
aligned KPI’s measure the supply chain
ing increasingly difficult. Companies must invest in
and balance their inventories more wisely to ensure
optimal on-shelf availability in all commercial outlets.
IT systems need to be tightly integrated to provide the
necessary insight into the end-to-end supply chain.
Companies should also have visibility in the huge
amounts of big data that are becoming available. All of
these factors mean that ongoing change management
is required: Do.
One of the main supply chain challenges is increasing
uncertainty; this makes demand planning very difficult,
especially if there is no mid-season production capacity
available for replenishment purposes when a product
should prove to be very successful. A lack of collabo-
ration between the various links in the supply chain
causes poor insight into stock keeping unit (SKU) lev-
els, causing over- and understocks. A higher frequency
of customer deliveries is crucial to lower the volume of
in-transit stock, particularly in ecommerce. To deliver
delivery frequency
omni-channel
city restrictions
e-fulfilment
high service levels, fashion and luxury goods manufac-
turers must look for supply chain improvements based
on real consumption data: Check.
The most important route to supply chain improvement
is through true collaboration between retailers, distribu-
tors, brand owners, manufacturers and their suppliers
based on demand-driven information and analysis.
This will result in more consumption-oriented planning
and collaborative replenishment with dynamic buffer
challenging home delivery
high in-transit stock
high percentage of returns
management. Sharing real-time information on a cloud
platform that integrates with existing ERP systems will
improve on-shelf availability, customer satisfaction and
thus, competitiveness. In summary, the fashion and 3
luxury goods business should regularly evaluate the lat-
est market trends and measure their impact, then iden-
tify the constraints in their supply chains to find ways to
overcome them: Act.