United Kingdom

Details

  • Service: Advisory
  • Industry: Retail and Consumer Goods
  • Date: 13/09/2012

Fashion retailers urged to take stock as out-dated supply chains put a strain on business 

With UK retail sales falling to their lowest point since Easter* and growing numbers of clothing stores struggling to survive, Andrew Underwood, partner at KPMG Management Consulting, is warning fashion retailers to adopt a new approach to managing their supply chain, or risk being saddled with debt mountains, caused by immovable stock.

 

He says: “The rise of ‘fast fashion’ has placed a huge strain on the marketplace, with retailers struggling to shift goods before they become ‘yesterday’s season’.  Consumer pressure also means that the concept of having a fresh floor every month has changed the way supply chains need to perform.  It’s no longer enough to ‘buy to sell’ as retailers now need to pay closer attention to product lifecycles, improve forecast accuracy and take a fresh look at their supply chain just to keep their heads above water.

 

“For far too long lip service is the most that has been paid to the importance of real-time monitoring, but if anything is clear, it is that the retailers who make use of cloud technology to instantly bring together information from every corner of the supply chain, will be in a better position to manage demand.

 

“The simple fact is that predictions coming out of Head Office no longer suffice.  With a growing number of consumers turning to tablets and mobile apps to shop on the move, supply chains somehow have to cope with rapidly changing demand, driven by social media rather than traditional channels to market.  But unless the right system is in place, how can retailers reasonably expect to separate and manage stock?  How can they be geared up to provide the right number of units in the right place at the right time?

 

“The answer lies in greater collaboration with each part of the supply chain, so that ‘consensus forecasting’ becomes the norm, rather than the exception.  Only when retailers take on board the information gleaned in real-time by their suppliers, logistics and customer service teams who deal with after-sales returns can true picture of stock availability be painted.  And only then will stock-piling stand a chance of becoming a thing of the past.”

 

Ends


Media enquiries:

Mike Petrook, KPMG Press Office
020 7311 5271 (t), 07917 384 576 (m) or mike.petrook@kpmg.co.uk

 

Notes to Editors:
* UK retail sales values were down by 0.4% on a like-for-like basis from August 2011 , according to the latest BRC/KPMG Retail Sales Monitor

 

About KPMG

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff.  The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.