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Some "fast fashion" retailers, like Zara attempt to control their whole supply chain from design to production to the retail store, in order to practice just in time production, or something close to it; in cases of complete integration, there is no "wholesale fashion distribution," as the retailer is its own manufacturer and wholesaler.
This stability and coordination allows to reduce the bullwhip effect, [14] as the manufacturer has a clearer visibility on the supply chain and an overview of the incoming demand. [15] On the retailer’s side, all the costs associated with inventory management, (holding costs, shortage costs, spoilage costs, etc.) are greatly reduced.
Typically, supply-chain managers aim to maximize the profitable operation of their manufacturing and distribution supply chain. This could include measures like maximizing gross margin return on inventory invested (balancing the cost of inventory at all points in the supply chain with availability to the customer), minimizing total operating expenses (transportation, inventory and ...
an "extended" supply chain includes suppliers of the immediate supplier and customers of the immediate customer; an "ultimate" supply chain includes all of the organizations involved in the supply of the product or service. In each case, the flow of information and finances is part of the chain as well as the product or service. [10]
A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product. A supply chain encompasses everything from the delivery of source materials from the supplier to the manufacturer through to its eventual delivery to the end user.
For example, if five manufacturers supply goods directly to a hundred different retail stores, then they will have to have 500 of deliveries (5 times 100). However, if those five manufacturers supply to the same wholesaler, and the wholesaler at this stage provides 100 different retailers, then the total number of deliveries will decrease to ...
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