Copyright Goodheart-Willcox Co., Inc. 86 Fashion Marketing &Merchandising
As a result of QRM, communications are improved and processing costs are
lower. There is less duplication of functions, which means a faster response
to market trends. A pull from the consumer end of the pipeline drives the pro-
cess rather than the old push of mass-produced merchandise from the industry,
which often resulted in products that consumers did not want. The right mer-
chandise is available for market demand, Figure 5.10. Retailers have higher
sales and more satisfi customers. Also, to stay in the long-term partner- fied
ships, suppliers provide the promised quality and expected on-time delivery.
This makes goods more competitive by satisfying demand and shortening the
time through the chain. The original fear of electronic data sharing with other
companies has subsided, and standardized software
programs now enable the computers of companies to
communicate accurately.
Benefi of QRM include fits
• improved focus on consumer needs
• accuracy of communications
• higher quality standards
• more effi purchasing, production, and ficient
distribution
• improved shipping schedules
• lower inventories
• easier reordering
• shorter lead and response times
• improved sales forecasting
• fewer retail markdowns, closeouts, and stockouts
• lower costs
• increased sales
• higher profi margins fit
• improved product fl exibility through smaller orders
• higher return on investment
Industry unity among the segments stems from successful end products
that are a result of combined input from each process along the pipeline.
Prosperity of the partnerships perpetuates cooperative, trusting linkages,
since companies share information for their own good and for the good of
the chain. This reduces bad relationships and encourages long-term advance-
ments. The system builds strength, and spreads and reduces business risks
with partnering synergies. Synergy is cooperative interaction of parts that
results in a total effect that is greater than the sum of the parts added together
separately. The statement, “The whole is greater than the sum of its parts” is
sometimes represented as 2 +2 =5!
Future predictions indicate that companies will shift their focus from
doing everything, to doing only what they do best. They will link up with
other companies to form networks that accomplish whole, completed pro-
cesses that will serve retail customers faster and better.
Push
production-driven
approach (used in
the past).
Pull
market-driven approach
using information
technology.
Production of what
companies decide
to manufacture.
The unified industry
receives information
and responds.
The product
pipeline
quickly
manufactures
what is selling.
The
information
pipeline
feeds data
from POS.
Consumer demand
is not satisfied.
Consumer demand
is satisfied.
Mary G. Wolfe
Figure 5.10 When the information pipeline feeds the
product pipeline with point-of-sale data, as shown under
“pull” on the right, the result is goods and services that
satisfy consumer demand.
As a result of QRM, communications are improved and processing costs are
lower. There is less duplication of functions, which means a faster response
to market trends. A pull from the consumer end of the pipeline drives the pro-
cess rather than the old push of mass-produced merchandise from the industry,
which often resulted in products that consumers did not want. The right mer-
chandise is available for market demand, Figure 5.10. Retailers have higher
sales and more satisfi customers. Also, to stay in the long-term partner- fied
ships, suppliers provide the promised quality and expected on-time delivery.
This makes goods more competitive by satisfying demand and shortening the
time through the chain. The original fear of electronic data sharing with other
companies has subsided, and standardized software
programs now enable the computers of companies to
communicate accurately.
Benefi of QRM include fits
• improved focus on consumer needs
• accuracy of communications
• higher quality standards
• more effi purchasing, production, and ficient
distribution
• improved shipping schedules
• lower inventories
• easier reordering
• shorter lead and response times
• improved sales forecasting
• fewer retail markdowns, closeouts, and stockouts
• lower costs
• increased sales
• higher profi margins fit
• improved product fl exibility through smaller orders
• higher return on investment
Industry unity among the segments stems from successful end products
that are a result of combined input from each process along the pipeline.
Prosperity of the partnerships perpetuates cooperative, trusting linkages,
since companies share information for their own good and for the good of
the chain. This reduces bad relationships and encourages long-term advance-
ments. The system builds strength, and spreads and reduces business risks
with partnering synergies. Synergy is cooperative interaction of parts that
results in a total effect that is greater than the sum of the parts added together
separately. The statement, “The whole is greater than the sum of its parts” is
sometimes represented as 2 +2 =5!
Future predictions indicate that companies will shift their focus from
doing everything, to doing only what they do best. They will link up with
other companies to form networks that accomplish whole, completed pro-
cesses that will serve retail customers faster and better.
Push
production-driven
approach (used in
the past).
Pull
market-driven approach
using information
technology.
Production of what
companies decide
to manufacture.
The unified industry
receives information
and responds.
The product
pipeline
quickly
manufactures
what is selling.
The
information
pipeline
feeds data
from POS.
Consumer demand
is not satisfied.
Consumer demand
is satisfied.
Mary G. Wolfe
Figure 5.10 When the information pipeline feeds the
product pipeline with point-of-sale data, as shown under
“pull” on the right, the result is goods and services that
satisfy consumer demand.