Ching-Wen Chen

"Supply Chain Management" is the key of competitiveness in "Fast Fashion E-commerce."

➜ Using Zara and SHEIN as examples.

Translated from Chinese (Simplified) to English - www.onlinedoctranslator.com

Unit Outline

• 1.Case Study: Successful Experience in Supply Chain Optimization(Fast fashion brandZara,SHEIN）
• 2.Supply Chain Management Overview
• 3.Logistics and Distribution in E-Commerce
• 4.Inventory Management System
• 5.Supply Chain Optimization Strategy

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1.Case Study：Successful Experience in Supply Chain Optimization

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（Zara,SHEIN）

Case Study: Successful Experience in Supply Chain Optimization

• Many well-known companies haveSupply Chain OptimizationRemarkable results have been achieved.
• For example1: ZaraClothing,SHEINFashion
• Zara/SHEINpass throughRapid response supply chain model,
• Will be from【Clothingdesign】,arrive【Store shelves】Time,Shortened to a few weeks,
• Greatly enhanced market competitiveness.
• These successful cases provide valuable reference for e-commerce companies.

Case Study: Shein

• Special performance:
• Sheinfrom2021The year begins.All AmericaAPPDownloads1name
• Sheinexist54A country, tooAPPDownloads1name
• SheinexistFashion/ClothingCategoryInternet traffic is the world's1name
• VisitSheinWebsiteAverage length of stayfor8point36Seconds (higher than other brands）
• from2013Year starts8Year,The annual growth rate exceeds100%
• A business philosophy that is better than competitors:
• 1.SheinalreadyBeyond【Fast Fashion】, but【Instant Fashion】
• 2.SheinIt's like【E-commerceTikTok】 ➜gooduse【Big Data Analysis】Gain insights into customer preferences and market trends

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Case Study: Shein

• A business philosophy that outperforms competitors:
• 9.SheinHave your ownExclusive【Design Team】,Exclusive【Supply Chain】
• 10.SheinThe product development life cycle is short and fast
• SheinFrom design to sales, it only takes【3sky】
• ZaraNew products,【30~60sky】
• Traditional clothing industry,want【90sky】

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• 11. Guangzhou's clothing supply chain,1/3All forSheinservice

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Zara: Spain Fast Fashion brand�（Fast Fashion）

• ZaraIt is aA world-renowned Spanish fashion brand, established in1974Year, byAmancioOrtegaandRosalía Mera Founded in La Coruña, Galicia, Spain.ZarayesInditexThe core brand of the group, which is also one of the world's largest fashion retailers.
• ZarabyIts "fast fashion" (Fast Fashion) is well-known for its business model, can quickly transform the latest fashion trends into products and quickly bring them to market.ZaraWe have established an extensive retail network with thousands of physical stores around the world.Over90countries and regions.
• ZaraOur product line coversMen's and women's fashion, children's clothing, accessories, shoes and homeSupplies and other categories.
• The brand's design style is usually simple and elegant.At the same time, keep up with fashion trends.ZaraHundreds of new designs launched every year,
• Based on consumer demandQuick update of inventory,This means that the products stay in the store for a shorter time., which helps maintain a sense of freshness and style

2.Supply Chain Management Overview

Definition of Supply Chain Management

• Supply Chain Management(Supply Chain Management, SCM)
• It means that enterprises【product】
• from【Raw material suppliers】Deliver toFinal Consumer
• A series of【Planning, Controlling, and Operating Activities】
• These activities include:
• Procurement, manufacturing, logistics, inventory management,Sales
• Supply Chain ManagementTargetyes
• Maximize value creation,
• Minimize costs and risks.

Importance of Supply Chain Management

• In e-commerce,Supply Chain ManagementCrucial,
• Because it directly affects the company's
• Delivery speed
• Cost Control
• Customer satisfaction
• Effective supply chain management can help companies
• Gain an advantage over your competition.
• Through faster delivery
• Lower costs to increase market share.

Characteristics of e-commerce supply chain

• speed:
• E-commerce requirementsQuick response to market demand,thereforeThe supply chain must be efficientand flexibility.
• Complexity:
• E-commerce involves multiple channels of sales, includingOnline and offline collaboration, which makes supply chain management more complicated.
• Global:
• With the development of cross-border e-commerce,Supply chain management needs to be considered【CompleteGlobal Logistics, Customs Clearance,International Payments】And many other challenges.

3.Logistics in

e-commerce

The role of logistics management

• Logistics management is an important part of supply chain management.
• It covers
• from【Suppliers】arrive【Consumers】The entire commodity circulation process.
• Logistics in e-commerce mainly includes:
• Warehouse management,
• Transport Management
• Delivery service.
• The level of logistics efficiency directly affects consumers' shopping experience and enterprises' operating costs.

Challenges of e-commerce logistics

• Fast delivery requirements:
• As consumersThe demand for delivery speed is getting higher and higher, how to complete order processing and delivery in a short time has become a big challenge.
• Reverse Logistics:
• Returns and ExchangesVery common in e-commerce.Enterprises need to have a complete reverse logistics systemto handle these needs.
• Multi-channel logistics:
• In e-commerce, companies need to manageOrders from different sales channels, which requires the logistics system to have a high degree of integration and coordination capabilities.

4.Delivery in

e-commerce

Delivery strategy

• Last mile delivery:
• The last mile of delivery is the most challenging part of logistics, companies can cooperate with local delivery service providers,Or establish your own delivery team to improve delivery efficiency.
• Storage location optimization:
• ByWarehouses are located close to major markets, companies canShorten delivery time, reducing logistics costs.
• Automation technology applications:
• Use automation techniques such as
• Drone delivery,
• Automatic storage system, etc.
• It can improve logistics efficiency and reduce labor costs.

5.Inventory Management System

Importance of Inventory Management

• Inventory management is one of the core links of supply chain management.
• How to effectively control and adjust inventory levels,
• To meet market demand,
• Avoid out-of-stock or over-inventory situations.
• Good inventory management can help companies reduce costs.Improve capital turnover, and improve customer satisfaction.

Inventory Management challenge

• Inaccurate demand forecast:
• The volatility of market demand makes inventory management challenging.Too much or too little inventory can lead to losses.
• Product Diversification:
• In e-commerceWide range of productsHow to effectively manageDiverse inventory becomes a major problem.
• Inventory update speed:
• Especially inFashion, electronic products, etc. are updated quicklyIn the industry, companies need to respond quickly to market changes and adjust inventory strategies.

Functions of Inventory Management System (IMS)

• IMS,Inventory Management System
• Real-time inventory monitoring:
• IMSCanTrack inventory levels in real time, providing accurate inventory data to help companies make timely decisions.
• Automatic replenishment system:
• Based on inventory levels and forecast demand,Automatically generate replenishment orders, ensure sufficient inventory.
• Multi-warehouse management:
• For enterprises with multiple warehouses, IMS canCoordinate inventory allocation between warehouses, optimize resource utilization.

Inventory Optimization Strategy

• Demand Forecasting Technology:
• useBig Data and Artificial Intelligence TechnologyconductDemand Forecast, reduce forecasting errors and improve the accuracy of inventory management.
• Inventory classification management:
• Based on the sales frequency and profit contribution of the product,Divide inventory into different levels and adoptDifferentiated management strategies.
• Flexible supply chain strategy:
• EstablishFlexible supply chain, quickly adjust inventory strategies according to market changes and reduce inventory risks.

6.Supply Chain Optimization Strategy

The Importance of Supply Chain Optimization

• In e-commerce,Supply Chain Optimizationis the key to staying competitive.
• Through supply chain optimization,
• Enterprises can improve overall operational efficiency.
• Reduce costs,
• and shorten delivery time,
• Thereby improving customer satisfaction.

Strategies for Supply Chain Optimization

• Supply chain integration:
• pass throughIntegration【Suppliers, manufacturers, logistics providers】etc. to establish a collaborative supply chain system and improve overall efficiency.
• Digital Transformation:
• use【Internet of Things (IoT), Big Data Analysis,Blockchain Technology】, realize digital management of the supply chain and improve transparency and traceability.
• Flexible supply chain:
• Build capacityQuickly respond to market changesA flexible supply chain that can respond to emergencies and demand fluctuations through flexible production planning and logistics arrangements.
• Environmental Protection and Sustainability:
• Introducing environmental protection and sustainability considerations into supply chain management,
• For example:useRenewable energy, reducing carbon emissions,Adopt green logistics.

Conclusion

• In e-commerceSupply Chain ManagementIt is one of the key factors for business success.
• Through effective supply chain management, companies can
• Improve operational efficiency, reduce costs,
• And provide consumers with a better shopping experience.
• With the continuous advancement of technology,
• Digitalization of Supply Chain Management
• Supply Chain ManagementIntelligent,It will become the future development trend.
• Enterprises need to continue to focus on supply chain optimization and flexibly respond to market changes in order to remain invincible in the fierce market competition.