1. Best Practices Consortium
Supply Chain
Best Practices Consortium
Apparel Best Practices
Executive Seminar
Track 4, Session B
September, 2006

2. Scope
This session explores the trends of the apparel supply chain, including similarities and differences between wholesale and retail distribution.
Supply Chain Costs: Facilities, transportation and operations.
Distribution Best Practices: Receiving, VAS and order fulfillment.
Opportunities For Improvements

3. How Am I Doing on Costs?
How do our supply chain costs compare with other companies?

4. How Am I Doing on Costs?
What impact does transportation have on our overall supply chain cost?

5. How Am I Doing on Costs?
How do our distribution center (DC) operations costs compare?

6. Cost Drivers in the DC
Is the receiving process contributing to wholesaler’s higher DC operations cost?

7. Cost Drivers in the DC
What about handling costs inside the DC?

8. How Am I Doing on Inbound Shipments?
Wholesalers are clearly handling product inside the DC more than retailers.

9. How Am I Doing Inside the DC?
Wholesalers are providing a high level of value-added services in their DCs.

10. How Am I Doing on Outbound Shipments?
How do my DC operations’ outbound shipments compare to other companies?

11. Important Takeaways
While our overall supply chain costs are similar between wholesale and retail distribution, we see that:
Transportation – Wholesalers have a slight edge in cost as a percentage of revenue.
DC Operations – Retailers realize a significant reduction in handling.
Value-Added Services – Majority of this work content is performed in the wholesale DCs.
Crossdocking – Preparation upstream allows retailers to flow more product through the DC.
Opportunity – What can wholesalers do to reduce handling inside the DC?

12. Questions?