{"id":1921,"date":"2018-09-07T11:37:16","date_gmt":"2018-09-07T06:07:16","guid":{"rendered":"http:\/\/mag.vue.ai\/?p=1921"},"modified":"2024-04-30T10:18:59","modified_gmt":"2024-04-30T04:48:59","slug":"manufacturing-in-a-zara-world-why-shortening-your-supply-chain-needs-to-be-a-key-focus","status":"publish","type":"post","link":"https:\/\/www.vue.ai\/blog\/retail-trends\/manufacturing-in-a-zara-world-why-shortening-your-supply-chain-needs-to-be-a-key-focus\/","title":{"rendered":"Manufacturing, in a Zara world: Why shortening your supply chain needs to be a key focus"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f8aa417dd86\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f8aa417dd86\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/manufacturing-in-a-zara-world-why-shortening-your-supply-chain-needs-to-be-a-key-focus\/#mine-seasonal-historical-and-market-trends-data-regularly\" title=\"Mine seasonal, historical and market trends data regularly\">Mine seasonal, historical and market trends data regularly<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/manufacturing-in-a-zara-world-why-shortening-your-supply-chain-needs-to-be-a-key-focus\/#ensure-real-time-flow-access-to-sales-trends-and-buying-data\" title=\"Ensure real-time flow &amp; access to sales, trends and buying data\">Ensure real-time flow &amp; access to sales, trends and buying data<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/manufacturing-in-a-zara-world-why-shortening-your-supply-chain-needs-to-be-a-key-focus\/#a-hyper-local-approach-to-sourcing\" title=\"A hyper local approach to sourcing\">A hyper local approach to sourcing<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/manufacturing-in-a-zara-world-why-shortening-your-supply-chain-needs-to-be-a-key-focus\/#lets-digress-a-little-bit-because-we-love-telling-stories\" title=\"Let\u2019s digress a little bit because we love telling stories.\">Let\u2019s digress a little bit because we love telling stories.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/manufacturing-in-a-zara-world-why-shortening-your-supply-chain-needs-to-be-a-key-focus\/#to-quickly-sum-up-your-action-plan\" title=\"To quickly sum up your action plan:\">To quickly sum up your action plan:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p><span style=\"font-weight: 400\">Is there such a thing as too many clothes? Even millennials don\u2019t seem to think so! Usually perceived as a conservative audience when it comes to spending, it turns out <\/span><a href=\"https:\/\/www.forbes.com\/sites\/richardkestenbaum\/2017\/06\/14\/this-is-how-millennials-shop\/#1f4cf81a244c\"><span style=\"font-weight: 400\">even they cannot resist a good discount,<\/span><\/a><span style=\"font-weight: 400\"> and tend to buy quite a bit in the clothing and accessories department.<\/span><\/p>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1926 aligncenter\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/09\/shutterstock_191344820-1-300x169.jpg\" alt=\"shutterstock_191344820-1\" width=\"509\" height=\"287\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/09\/shutterstock_191344820-1-300x169.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/09\/shutterstock_191344820-1-768x432.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/09\/shutterstock_191344820-1-1024x576.jpg 1024w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/09\/shutterstock_191344820-1.jpg 1920w\" sizes=\"(max-width: 509px) 100vw, 509px\" \/>\n<p><span style=\"font-weight: 400\">Sometimes, supply and demand keep pace well enough to be hard for us to distinguish whether the chicken came first or the egg. Also, visual curation platforms like Pinterest, Snapchat and Instagram almost guarantee that a trend in one part of the world is a trend in all of the world. <\/span><\/p>\n<p><span style=\"font-weight: 400\">What does this mean for your fashion business today? According to the State Of Fashion <\/span><a href=\"https:\/\/cdn.businessoffashion.com\/reports\/The_State_of_Fashion_2018_v2.pdf\"><span style=\"font-weight: 400\">report from McKinsey and company, <\/span><\/a><span style=\"font-weight: 400\">your customers want it all- convenience, quality, values orientation, newness, and price. As you might have guessed, fixing the backend operations has a lot to do with delivering on most of these expectations. It isn\u2019t about the spiffy shop floor anymore.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"mine-seasonal-historical-and-market-trends-data-regularly\"><\/span><b>Mine seasonal, historical and market trends data regularly<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400\"><b>Convenience and newness<\/b><span style=\"font-weight: 400\"> can both be achieved by ensuring that good quality products get to the shelf fast enough. It is all about being on time in the world of trends.<\/span>\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Planning the supply well in advance for fashion trends that last for a while. Tassels and off-shoulder themes don\u2019t seem to be making an exit just yet, but they are a whim, at the end of the day. Do you have the capability, and data, to plan for trends that go in and out of fashion over time?<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"ensure-real-time-flow-access-to-sales-trends-and-buying-data\"><\/span><b>Ensure real-time flow &amp; access to sales, trends and buying data<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400\"><b>Better quality<\/b><span style=\"font-weight: 400\">, as many traditional manufacturers would agree, is a function of accurate prototyping. Usually, in the fashion business, design, production, and sales happen one after the other. However,&nbsp;by getting manufacturing and sales to happen side-by-side,&nbsp;you have an opportunity to test your products in the market both for quality issues and on the basis of individual preferences.<\/span>\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">For example, retailers such as Zara, known for their fast-fashion offerings, usually have a different collection for each region\/ geography. As a retailer, one way to get there is to keep testing out your designs on your audience and being prepared to change them up in time, if need be.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">\u201cToo cumbersome,\u201d we hear you saying. Just over a year ago, you\u2019d be right. However, today, you have the power of machines right behind you. Using visual merchandising data and actual sales from a shop floor, you can track which products consumers are more interested in. You can then manufacture those products from the catalog that have more potential for moving off the shelves quickly.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Get your algorithms to constantly compare outfits of key influencers and catalogs that are trending out there.&nbsp;Be the first to spot a trend with image recognition systems.&nbsp;<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"a-hyper-local-approach-to-sourcing\"><\/span><b>A hyper local approach to sourcing<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><b>Values-orientation <\/b>is a millennial thing. Today\u2019s shoppers live to experience the aftershocks of excessive consumerism, and they\u2019re often very keen to make choices that leave behind a better planet. For retailers, this is good news. Sourcing raw material locally and processing it right there benefits the local economy, reduces carbon emissions due to the transportation of goods back and forth, and also reduces the prices of the finished product. Most significantly, it makes your time-to-shelf much faster by eliminating transportation almost entirely.<\/li>\n<\/ul>\n<img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1944 aligncenter\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/09\/Screen-Shot-2018-09-07-at-5.26.01-PM-300x150.png\" alt=\"screen-shot-2018-09-07-at-5-26-01-pm\" width=\"486\" height=\"243\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/09\/Screen-Shot-2018-09-07-at-5.26.01-PM-300x150.png 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/09\/Screen-Shot-2018-09-07-at-5.26.01-PM-768x384.png 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/09\/Screen-Shot-2018-09-07-at-5.26.01-PM.png 991w\" sizes=\"(max-width: 486px) 100vw, 486px\" \/>\n<p><span style=\"font-weight: 400\">Over and above all of these factors, today\u2019s consumer wants a good deal. <\/span>Price<span style=\"font-weight: 400\"> as a determinant of shopping behavior is unlikely to go out of fashion anytime soon. <\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"lets-digress-a-little-bit-because-we-love-telling-stories\"><\/span><strong>Let\u2019s digress a little bit because we love telling stories.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400\">Corrado Assenza, the famous owner of Cafe Sicilia, is known as much for his story as his almond granita. Now, this granita is not made from ordinary almonds, you see. They are sourced locally from Sicily\u2019s farms and are famous for their distinct flavor. A few years ago, Sicily\u2019s almond farms gave way to real estate development. What does a granita-maker do in these circumstances?<\/span><\/p>\n<p>Buy the farms, of course! Not only did the chef continue to use the almonds from his farms, but he also made Sicily\u2019s almonds a global phenomenon, thus building up demand for them.<\/p>\n<img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1928 aligncenter\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/09\/shutterstock_475302262-300x200.jpg\" alt=\"shutterstock_475302262\" width=\"533\" height=\"355\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/09\/shutterstock_475302262-300x200.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/09\/shutterstock_475302262-768x511.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/09\/shutterstock_475302262-1024x681.jpg 1024w\" sizes=\"(max-width: 533px) 100vw, 533px\" \/>\n<p><span style=\"font-weight: 400\">Moral of the story- with enough demand, the supply will come and the prices will fall.<\/span><\/p>\n<p><span style=\"font-weight: 400\"><strong>Back to our case for pricing now.<\/strong> Sustainable fashion does not come cheap today, even though we agreed in the last point that for all practical reasons, it should. This is because demand for these clothes exists, but hasn\u2019t peaked yet. <\/span><\/p>\n<p><span style=\"font-weight: 400\">When that happens, everyone will be growing almonds, or in this case, making clothes that aren\u2019t a burden on the world. And therefore, prices will fall across the supply chain. <\/span><\/p>\n<p><span style=\"font-weight: 400\">The real question here is, are you ready to invest in that idea and gain a first-mover advantage? Are you prepared to fix your supply chain such that it is not just robust, but also sustainable every step of the way?<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"to-quickly-sum-up-your-action-plan\"><\/span><strong>To quickly sum up your action plan:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ol>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Use data to fix your supply chain.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Get access to real-time data. It allows you to react, respond, deliver and monitor<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Use image recognition systems to understand trends, both current and historical and help you identify the overlaps and gaps between where you are now and where you need to go. <\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Put greater emphasis on local sourcing and delivery and win across the board.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400\">Significantly, 75% of the fashion executives surveyed for the State of Fashion survey said that they would implement Artificial Intelligence in their supply chains to keep up with the fast-paced era of shopping.&nbsp;AI offers better visibility of the time taken at each step of the way, thus providing solutions in terms of how to fix the delays.&nbsp;<\/span><em>When are you joining them?<\/em><\/p>\n\n\n<p><strong>Read More About<\/strong><a href=\"https:\/\/www.vue.ai\/industries\/ai-in-ecommerce\/\"><strong> Automated Catalog Management<\/strong><\/a><strong> Solution<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span> Is there such a thing as too many clothes? Even millennials don\u2019t seem to think so! Usually perceived as a conservative audience when it comes to spending, it turns out even they cannot resist a good discount, and tend to buy quite a bit in the clothing and accessories department. Sometimes, supply and demand keep  &#8230;<\/p>\n","protected":false},"author":23,"featured_media":2004,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1523,1161],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Manufacturing, in a Zara world: Why shortening your supply chain needs to be a key focus | Vue.ai Blog<\/title>\n<meta name=\"description\" content=\"Uncover the imperative of shortening fashion supply chains, inspired by Zara&#039;s approach. 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