What Is The Core Of "Zero Inventory" In Garment Industry?

How to make money in clothing business? This is a problem that must be considered by many businessmen and clothing store owners. Because of their close to fashion trends, clothing stores have decided that their styles must be constantly updated. And the fashion that was popular last year may become a slow-moving product this year, so there will inevitably be a backlog of stock. Solving inventory problems has become a major obstacle to making money.

The competition of garment industry is fierce, but the phenomenon of homogenization is serious and it is destined that the competition of garment industry can only stay at a lower level. Many garment enterprises have beautiful appearance, beautiful image, brand awareness and higher profits. However, behind the Chinese clothing enterprises, every family has a hard nut to crack. Every family has unspeakable pain and is generally faced with common resistance and embarrassment. Let's take a look at the four major obstacles and solutions to the clothing industry.

Clothing owners often say this: they earned money from their hard work for a year.

Usually, the bigger the business is, the bigger the warehouse is, the larger the sales volume is, the more the sales volume has been doubled, the liquidity on the books has not seen much increase, and the accumulated accumulation of hard work has gone to the warehouse for several years. This is the most common phenomenon in the clothing enterprises. Clothing enterprise There are finished goods warehouses and raw materials warehouses, larger ones plus branch offices, warehouse warehouses, agent warehouses, dealer warehouses... The number of optical warehouses is no longer smaller. Management is backward, or even do not know its own warehouse. clothing From the strategic point of view, the inventory problem should be solved from two aspects: the mode of operation of goods and the management of circulation.

 

"Zero inventory" is a dream product management mode for most garment enterprises and operators. However, due to the special purchase, seasonality, regionalism and functionality of clothing, there are still a lot of obstacles and immature development in the current stage of garment industry.

In the process of long-term garment channel operation, clothing enterprises rely mostly on the way of distribution to solve the problem of goods inventory. There are basically two ways: exchange system and buyout system. However, there are great uncertainties in these two ways. The replacement system is that brand enterprises take inventory risks on behalf of dealers and reduce the management cost of distributors. Therefore, with the expansion of the sales network, the number of stocks will also increase. Zero inventory However, it requires dealers to have strong market judgement and product sales ability, which increases the operating pressure of distributors, and tends to become a disguised inventory transfer, which can not generate actual market sales. Therefore, the inventory problem of clothing enterprises should be improved from a strategic point of view, namely, from the two aspects of goods management and circulation management.

 

"Zero inventory" means the accuracy of orders, that is, every order is the effective demand of consumers. Therefore, in order to truly achieve "zero inventory", we need the following necessary conditions: first, the coordination of the upstream and downstream of the entire supply chain is absolutely impossible; it is absolutely impossible for an enterprise to rely solely on one enterprise; two, the information level of the upstream and downstream enterprises in the supply chain is quite high and high enough, because zero inventory is associated with production, so that we can naturally achieve the "zero inventory" among the supply chain partners, and the three is to have a strong logistics system to support it. Therefore, "zero inventory" is not the wishful thinking of an enterprise. It depends not only on the informationization level of the upstream and downstream enterprises, but also on the suitable industrial environment, social environment and even the national conditions. Because the blind pursuit of "zero inventory" in form will only make the strong links bullying the weak links and eventually destroy the balance of the entire supply chain. From the actual needs and long-term development, it is the only way to achieve "zero inventory" to achieve the information linkage of the entire supply chain, and the degree of informatization of clothing enterprises is far from enough, which is the biggest obstacle to achieve "zero inventory".