Clothes People, Your Stock Panic Should Drop!

As for the proportion of stock, some industry experts have said that 20% is reasonable, but the standards of reasonable inventory are different at all stages of development.

Rather than blindly panic stock, it is better to treat rationally, fully understand inventory and avoid high inventory, which may be the proper way to deal with high inventory problems.

Bullwhip effect of stock traps

The data on inventory are almost frightening, but it is not easy to talk about.

Because having a reasonable stock is conducive to shortening the lead time, sharing the order cost and adjusting the preparation cost, preventing the shortage of goods and preventing the interruption of supply.

For inventory, we should understand it and solve it.

It is understood that the main culprit of today's high inventories is that enterprises pursue the speed blindly, seize the important position of the main business circle, speed up the shop opening, speed of design shipment, and the speed of sales growth.

We do not yet have the international speed led by ZARA, UNIQLO and H&M.

The ability to integrate the world's textile and clothing resources, therefore, the accumulation of inventory is the process of rapid growth of Chinese clothing brands must go through the throes.

Unlike other industries, clothing is easy to get through the season, and it is difficult to achieve zero inventory in other industries. However, from a deep perspective, the reason for the sharp increase in inventory is due to the increased consumer demand uncertainty, and the lack of fashionable sense in the decision-making level, the lack of efficient internal resources integration and the ability to cooperate with external resources, resulting in enterprises unable to respond quickly to the market.

This seems to reflect the industry's mainstream view of stock formation.

Paying attention to inventory management is the best solution.

With the application of information technology in the enterprise, such as Internet, ERP, e-commerce and so on, the competition mode of enterprises has changed fundamentally. Market competition has evolved from competition among individual enterprises to competition among supply chains.

Enterprises in all links can achieve information and resources sharing and mutual penetration through information technology, so as to achieve the purpose of complementary advantages, so as to provide more effective products and services to the market and enhance market competitiveness.

Why clothing companies are trapped in stock traps?

First, the sales forecast is inaccurate.

Consumer preferences are variable, and many factors can lead to irregular buying tendencies, which leads to great uncertainty in general consumer and dealer needs.

In addition, information communication with consumers is not smooth, which has increased the difficulty of sales forecasting.

Two, the failure of ordering strategy and the ability to control in time are poor.

This uncertainty comes from the ordering department itself.

Whether there is a reasonable ordering strategy, whether the information on the supply and demand of upstream fabric enterprises and consumers is accurate, timely and so on.

The three is the instability of the order cycle.

This is mainly determined by whether the supply channel is single and whether the supplier's performance level is satisfactory.

Four, there is no effective communication with all departments.

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The basic information such as dealers and consumer demand has deviated.

At the same time, frequent orders will also increase the workload and cost of suppliers. Suppliers often ask sellers to place orders in a certain quantity or a certain period. At this point, sellers will often increase the quantity of orders manually in order to get the goods as early as possible, or to get the goods in full or for rainy days.

In this way, the volume of orders is magnified, which may lead to the order requirement of the final garment manufacturers, which is several times or even tens of times of the actual demand of the consumers.

This has brought great negative effects on inventory management and production.

For a manufacturing enterprise such as garment enterprises, how to set up and maintain a reasonable inventory level to balance the shortage risk and loss caused by insufficient inventory, and increase the storage cost and capital cost by excessive inventory becomes a problem that must be solved by an enterprise.

In order to quickly digest inventory, the practice of domestic mass merchandising brand is to take new products discount, mix new and seasonal products together to make sales promotion, especially those down garments and seasonal weak commodities that are not fast changing styles, and are easier to be dumped. Besides, the Internet has also become a platform for many enterprises to dump off season goods.

It is one of the ways to dump stock at home and abroad, and the general discount is less than 50 percent off.

Semir adopts agency system.

96% of the stores are franchised stores. Inventory is mostly backlog in the channel, mainly in the hands of agents, and the buyout + ordering system makes Semir's inventory pressure relatively small.

However, agents must find ways to dispose of the goods. This part of the risk is concentrated on the agent level. If it can not be dealt with and the capital chain breaks, Semir will be able to find other people.

Lining retail discount

Lining, chief executive and chief executive of Zhang Zhiyong, has publicly stated that in 2012, the retail discount rate will reach 24% to 25%, and the discount rate of factory stores and discount stores will be 50% to 53%.

This is almost a nightmare for franchisees.

Once the stock crisis is spreading, everything is possible.

Seven wolves BI system

The national distribution system of the seven wolves requires the national agents and franchisees to use the system uniformly and solve the problem of poor accuracy and timeliness of the original sales information at one fell swoop.

At the same time, the data analysis platform (BI), which is open to agents, stores and upstream strategic partners, enables retailers to improve their store sales data analysis and inventory analysis capabilities. It not only improves the management level of terminal distributors, but also allows accurate sales data to be pmitted quickly in the system. This will greatly improve the management level and speed of supply chain reaction.

If there are channels and

It can't be digested, and some companies will sell the stock to the relatively strong dealers and traders, and sell them to some remote areas or overseas markets by regional delivery, after all, the cheap goods always want to eat, and one branch goes to the tail goods market, and the stock is sold to the tail goods purchase company and into the tail goods channel.

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