Apparel Inventory Management In Supply Chain Environment

It is an integrated management mode, which controls and schedules logistics, information flow and capital flow from the global perspective.

Clothing inventory management is one of the important parts of supply chain management. Due to the change of enterprise organization and management mode, there are many new characteristics and requirements compared with traditional apparel inventory management.

With the intensification of market competition, the disadvantage of traditional clothing inventory control mode in supply chain management environment is more prominent: every node enterprise to cope with unexpected changes in demand and protect its own interests.

It is often necessary to expand the level of clothing inventory to meet the needs, thus greatly increasing the total apparel inventory cost of the supply chain, which is undoubtedly not conducive to the dominant position of enterprises in the supply chain.

Therefore, it is necessary for enterprises to reform the traditional clothing inventory control method and seek new clothing inventory control mode to reduce the cost of clothing inventory, while garment supplier management clothing inventory mode can solve this management problem well.

With regard to the definition of VMI, some scholars believe that: "VMI is a cooperative strategy between users and garment suppliers, which is the lowest cost for both sides to optimize the product's availability. Under a mutually agreed target framework, the clothing supplier determines the appropriate level of clothing inventory for each product and the appropriate strategy to maintain the inventory level of these garments. Such a target framework is regularly monitored and modified to produce a continuous improvement environment.

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The main idea of VMI is to set up clothing inventory under the user's permission.

Level and replenishment strategy, have the right to control clothing inventory.

The key measures of VMI strategy are mainly embodied in the following principles: cooperative principle is very important when implementing VMI strategy, and mutual trust and pparency are very important. Clothing suppliers and users (retailers) must have a good spirit of cooperation before they can maintain good cooperation with each other.

The principle of goal consistency is understood by both sides.

Questions such as where to put the clothing inventory, when to pay, whether to pay the management fee, and so on, should be answered and reflected in the framework agreement.

The principle of reciprocity VMI is not about how the cost is allocated or who will pay, but on the issue of reducing costs, which reduces the cost of both sides.

The principle of continuous improvement enables suppliers and suppliers to share benefits and eliminate waste.

In the VMI system, the core enterprise can be either upstream or downstream of the supply chain, and when it is downstream, it can also be an intermediate part of the supply chain or at the end of the supply chain.

There are four main modes of operation of VMI: garment supplier manufacturer (core), garment supplier retailer (core), third party logistics participation mode, core enterprise (general manufacturer) distributor (or retailer), different operation modes and different business processes.

Next, under a two level supply chain with garment suppliers as the core business, garment suppliers will play a leading role in the environment, and the VMI business process will be analyzed as shown.

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Extract historical information such as retailer's sales volume, shortage, purchase lead time and safety clothing inventory, and archive.

Further amendments are made to the proposed order for actual shipments, and the forecast order is added. After the decision model is generated, the revised order is then sent to the retailer's logistics center.

After receiving the confirmation order from the retailer, the supplier will make the master production plan according to the forecast information of the order and demand, organize the shipment after the production, and some retailers require the supplier to provide the actual shipping information.

The supplier will return the shipment information.

Finally, the retailer will check the products in the logistics warehouse. If the supplier first provides the shipment information, then the electronic scan can check the storage.