Zappos.Com Essay

6744 Words 27 Pages
Delivering Happiness at | Supply Chain Management | Submitted To : Raghuram Jayaraman Submitted By: Kiran Khokhar Divya Jain |

Table of Contents

S.No. | Content | Page No. | 1. | Agile Supply Chain and its Process | 3 | 2. | E-Business | 10 | 3. | Case Study – Zappos.Com | 13 | 4. | Flow Chart | 17 | 5. | Conclusion | 20 | 6. | References | 23 |

Agile Supply Chain in the Fashion Industry

Keywords: supply chain, e-business, fashion, agility, global sourcing, flexibility, dynamic, predictability, product life cycle.


Fashion markets are synonymous with rapid change and, as a result,
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3. Low predictability – because of the volatility of demand it is extremely difficult to forecast with any accuracy even total demand within a period, let alone week-by-week or item-by-item demand. 4. High impulse purchasing – many buying decisions by consumers for these products are made at the point of purchase. In other words, the shopper when confronted with the product is stimulated to buy it, hence the critical need for ‘availability’.

Today’s fashion market place is highly competitive and the constant need to ‘refresh’ product ranges means that there is an inevitable move by many retailers to extend the number of ‘seasons’ i.e. the frequency with which the entire merchandise within a store is changed. In extreme cases, typified by the successful fashion retailer Zara, there might be twenty seasons in a year. The implications of this trend for supply chain management are clearly profound. The combined effect of these pressures clearly provides a challenge to logistics management. Traditional ways of responding to customer demand have been forecast-based, with the resultant risk of over-stocked or under stocked situations.
More recently there has emerged another trend that has added further complexity and difficulty to the management of fashion logistics. The growing tendency to source product and materials off-shore has led in many cases to significantly longer lead-times. While there is usually a substantial cost

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