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Merging Fashion Retail and Brand Planning Processes

News, Uncategorized

Author: Michael Gamper, CEO, ebp Global

Separate World

In the past, both fashion retail and brand companies have developed their own processes to approach planning. Fashion retail companies used seasonal based merchandise planning processes to plan sales, buying and inventory for each season. Brand companies in apparel and footwear operating extensive supply chains used more traditional supply chain planning processes using standard demand, inventory, capacity, and material planning approaches. As brand companies are migrating into omni channel setups and fashion retail also embrace wholesale channels as well as supply chains, the traditional segregation is becoming a significant issue to effective management of pre-season and in-season planning activities. Today’s omni channel and global supply chain set-ups require a much more integrated approach. This does not invalidate traditional planning components but highlights the need to integrate the various planning components in the right way to maximize opportunity and efficiency in the future. The below diagram depicts the different planning approach used today.

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The Digital Transformation of a Supply Chain – Blockchain and IoT

The Digital Transformation of a Supply Chain – Blockchain and IoT

News

The Internet of Things and Blockchain are two major disruptors impacting us in our daily lives, from Fitbits, Apple Watches, Alexa, Siri, Smart Refrigerators and even our Smartphones. But what is Blockchain and the Internet of Things? How do they work? And how is it impacting the supply chains across industries?

This article attempts to breakdown the concepts of Digital Transformation and its enablers Blockchain and Internet of Things to gain a deeper understanding to how it is applied to our Supply Chain World. Continue reading “The Digital Transformation of a Supply Chain – Blockchain and IoT” »

Trace Alliance Press Release

Trace Alliance Press Release

News

ebp Global announced that it is joining the Trace Alliance, a collaborative hub for solving supply chain challenges using blockchain technology. Joining the Trace Alliance brings us closer to using the OriginTrail blockchain protocol for data exchange in its supply chain, and is also a platform for connecting with a global network of software development and implementation partners.

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ebp’s Supply Chain Maturity Model

ebp’s Supply Chain Maturity Model

News

Any organization goes through different stages of maturity over its life cycle. The is a natural way to develop the organization, business processes, systems and data over time. Usually the level of maturity an organization is adopting, will be highly depended on a number of factors:

  • Industry maturity, or
  • Competitive pressures, or
  • Vision of the executive team, or
  • Willingness of an organization to invest in people, processes and systems, the last point is highly dependent on the margin pressure of a particular industry

In order to agree on the correct steps to improve key capabilities of an organization, understanding the current state is a key step. Hence, mapping an organization’s key capabilities on the maturity model is the first step. Not every organization must or should attain the highest level of the maturity model. As important as understanding the current state is to determine the adequate next step on the maturity development as well as the correct end state. Again, this does not have to be the highest level of the maturity model.

The understanding of where an organization is along the maturity model is vital. This is a key foundation for successfully adopting business processes or even running projects.

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One Number

One Number

News

Any business operates an annual budget process. Once done, this budget is hardly touched or modified during the fiscal year of execution. Targets for sales, production or other departments are derived from those budgets and used as performance targets for the fiscal year to come by each department.

As the fiscal year is passing by, monthly or weekly updates to a demand plan or a sales forecast are being applied. In any organization, a gap between budget or targets AND the demand plan or sales forecast will sooner or later appear. Whilst the desire for senior management to manage the business against a single number, i.e. the budget or target, they are much less comfortable with managing the gap.

Neither adjusting the demand plan or sales forecast to the budget or target, nor the opposite, are useful mechanisms to manage the performance gap.

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Inventory is proportional to Lead Time

Inventory is proportional to Lead Time

News

The objective of this article is to ‘refresh our memories’ about one of the most fundamental relationships in supply chain management: Inventory is proportional to Lead Time.

Let us remind ourselves where this started. This relationship was first defined in the context of the semiconductor industry, managing complex material flows through a production plant. Known as “Little’s Law”, the relationship is expressed as follows:

LT (Lead-Time) = CT (Cycle-Time) * I (Inventory)

CT = 1 / Tact Rate, or described in business language: CT = 1 / (PROCESS TIME per Piece)

If the cycle time stays constant, then lead-time will be longer in proportion to the amount of inventory. However, lead-time increases may result from a variety of additional factors.  Let us explore those.

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Advanced Process Architecture and Design Principles

Advanced Process Architecture and Design Principles

News

Business process architectures and their definitions are defined very differently by consulting firms and companies alike. There is no standard. However, this article will attempt to define some of the foundational elements of a process architecture.

There are 3 key elements which form the foundation of a business process architecture:

  1. The structure of the underlying supply chain – Horizontal View
  2. The flow of information and materials – Vertical View
  3. The maturity level of an organization

We will explore the 3 key elements now and then create an architectural model to be used by any organization.

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Changes to Techniques to Replenishment to Stores and DC

News

The world of replenishment techniques is changing rapidly. After the development and deployment of classical ROP (Re-order Point), MPS (Master Production Scheduling) and DRP (Distribution Requirements Planning) techniques for many years, recently there is a drastic change in the adoption of more advanced techniques for replenishment using TOC (Theory of Constraints) and Machine Learning principles. The TOC principle came from the fashion retail industry, which needed faster techniques to adopt to short life cycle products and rapid changes in consumer buying behavior.

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