SCM

QUICK RESPONSE ( QR)The concept of QR was developed as business

strategy for the apparel to reduce inventories , shorten cycle time , and respond rapidly to changing consumer demands.

Primary objective of the QR is risk reduction.Purchasing the wrong styles and quantities of

raw material and producing garments that do not sell and generate large markdown losses and create the greatest opportunity for cost reduction and profit improvement.

QUICK RESPONSE ( QR)The QR strategy involves using the

developing technologies in data processing and communication , evolving software application , and effective collabaration among business partners in the integrated textile complex supply chain.

QUICK RESPONSE ( QR) The elements of the effective QR can be

summarized by the three Cs:-1. Control2. Communication3. Collaboration

QUICK RESPONSE ( QR)Control : Merchandising calenders; product data

management; merchandise planning; forecasting and adoption, line management analysis ; materials management , product sourcing; manufacturing systems ; inventory management ; and point of sale product performance must all be carefully controlled with accurate responsive system.

QUICK RESPONSE ( QR)Control New Development Inventory and WIP From top management to all the elements of

SC must work on common goal

QUICK RESPONSE ( QR)Expanding Scope :-Line DevelopmentProduct SourcingLogistics

Vendor Managed Inventories ( VMI )Vendor Managed Inventories is a high-level

forecasting strategy used by some QR partners in which dynamic model stocks or desired inventory stocking levels for retailers and agreed upon replenishment procedure are followed.

Once the amount of inventory drops below the predetermined levels, the suppliers automatically ships the necessary amount of stock.

Radio Frequency Identification( RFID )Radio Frequency identification uses radio

waves to transmit digital information that has been encoded on RFID tag or label.

Unlike bar code , the store information does not have to seen to be read.

While the data used in bar coding is based upon the UPC , the data in RFID is based on Electronic Product Code ( EPC ).

Radio Frequency Identification( RFID )In 2004 , the voluntary Inter-Industry

Commerce standard ( VICS ) association joined with American Apparel and Footwear Association ( AAFA ) and Kurt Sulman Associates ( KSA ) to form the Apparel and Footwear RFID / EPC committee.

Collaborative Planning , Forecasting and Replenishment (CPFR )CPRF establishes a shared action and

responsibility model from apparel manufacturers and their retail QR partners.

Under CPRF retailers and manufactures no longer share only data ; they also share the total responsibility for creating the forecast and making commitment to produce specific SKUs/

Shared

Business Plan

Joint Development Evaluat

ion criteria

Information

Sharing

Collaborative

Forecasts

Real Time date

sharing EDI

Collaboartive

Analysis and adjustments

of forecas

ts

Evaluate Results

Adjust Business Plan

Shared Business Plans Business Plans must be integrated to establish

common objectives that maximize both retail and manufacturing profit and operational goals.

Joint Development of Evaluation CriteriaCPFR should contain measurable criteria for

evaluating the level of success for the program.

Criteria should be developed jointly by QR partners and contain quantifiable evaluation objectives.

Average Inventory levels , replenishment time tables , stock out percentages and maintained margin are examples of measurable criteria .

Information SharingPartners in a CPFR effort must share

information that could provide critical business intelligence.

It require complete sharing of company information and objectives.

Exception reporting should be build into the CPFR management information systems to alert decision makers in both retail and manufacturing segments that some event has deviated from their expected standard.

Collaborative ForecastsAn effective CPFR program relies on accurate

forecasting .A collaborative effort that supplies store-

specific sales data and apparel manufacturer's historical sales records is necessary to establish a solid forecasting base.

Out come of the collaborative forecasting process is a single , shared forecast that is supported by both QR partners with a joint commitments to orders and delivery requirements.

Real Time Data SharingRetail POS data and SKU tracking of

manufacturing in-process must be a continuous process communicated in real time through EDI to achieve maximum results from CPFR program.

Collaborative Analysis and Adjustments of forecastsThe CPFR system evaluate the incoming data

in order to isolate deviation from the plan so that forecasts can be fine tuned and decision making criteria can be adjusted to accommodate changing conditions

Evaluation of ResultsThere must be an ongoing evaluation of

program results based upon the joint evaluation criteria so that decision makers from retail and manufacturing can make timely collaborative adjustments to the system.

Adjustments of Business PlansA final evaluation should be scheduled at the

end of each fiscal period to adjust the shared business plans and reaffirm the partners commitment to the CPFR program.

Voluntary Inter-Industry Commerce standard ( VICS )VICS' vision for the future is a world in which

products move through the Global Supply Chain, seamlessly and efficiently, maximizing value for manufacturers, retailers and suppliers.

To achieve this, VICS engage communities of interest to sit in open safe forum to develop standard business guidelines based on real-world needs and processes.

VICSSince 1986, VICS, the Voluntary Inter

Industry Commerce Solutions Association, has worked to improve the efficiency and effectiveness of the entire supply chain. VICS pioneered the implementation of a cross-industry standard, Quick Response (QR) that simplified the flow of product and information in the retail industry for retailers and suppliers alike.

VICSA 1996 study by Kurt Salmon Associates

showed that companies which implemented VICS' business replenishment processes had dramatic results: increased sales, faster turns, improved inventory control and cost savings. While the results were impressive,

VICS continued to develop a new collaborative dimension to supply chain processes, Collaborative, Planning, Forecasting, and Replenishment CPFR.