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ICFAI SCHOOL OF MARKETING STUDIES

Logistics: Lifeline of Apparel Industry


A Paper on “CORNERSTONE BRAND” of “ZEROSTOCK Retail Pvt. Ltd.”

Mr. Sanjeev kr. Pandey and Mr. Hitesh Bhardwaj

ABSTRACT

Logistics industry is playing a vital role for every organization and this is the reason that logistic
industry is evolving with very rapid pace. Due to the presence of cut throat competition in the
market now organization are concentrating on their competitive edge over competitors. The Cost
reduction is the main area where organization are working to provide product at cheaper cost and
logistics management is one of these tools that offer effectual method of cost reduction. Now
logistic industry is exploring innovative technique for profit maximization and cost reduction
with some ground breaking technique like Just in time model and Zero stock concept. With the
help of this paper here we are trying to explicate zero stock concepts that is using by Zerostock
Retail Pvt. Limited. Zero stock buying refers to buying in a manner that the system ensures
that the material is delivered by the seller only when it is required and that no prior inventory of
the item is maintained by the buyer. Normally, under this system the firms try to operate on the
basis of zero stock and the supplier holds the stock for these firms. Usually, the firms of the
buyer and seller are close to each other so that the raw material of one is the finished product of
another. Alternatively, the system could work well if the seller holds the inventory and if the two
parties work in close coordination. This also significantly reduces obsolescence of inventory,
lead time and clerical efforts in paper work.
The modern logistics management is based on serving the customer in an efficient manner.
Modern customer –driven logistics management focuses on delivering product on time with list
cost to meet customer expectation. Due to the globalization of industry logistic became more
critical issue for many organizations with increasing interest rates and cost logistic obtained
more attention as a major cost driver. Globalization of industry affected logistic in two ways.
First, increasing competition among the organization has caused to look for new way to
differentiate their organization, product and services from others. Second, the logistics
management between the organizations become a vital part, more costly and more complex as
organization increasing buy and sells offshore. Transformation of technology and information
technology contribute boom in logistic management, provide ability to better monitor transaction
incentive activities such as ordering movement and storage of goods and material to
organization; this information technology increase the ability to manage flows of tangible
material (e.g. raw material) and intangible material (e.g. information) through the operation to
the customer (finished material). In present scenario profit leverage from logistic and
actualization that logistic can be used as a strategic weapon in competing the market place.
Did you ever imagine about a man apparel store; where no stock is available!
A Hyderabad based Retail Company Zreostock Retail Pvt. Limited entered into market with
zero stock concepts. The company has introduced CORNERSTONES branded men’s wear
apparel and shops. This company was founded by Madhukar Gangadi, chief executive of
MedPlus Health Service Pvt. Limited, which runs a chain of medical store. By using zerostok
business model this company claims to give value, variety and convenience to customers. As
there is no readymade apparel available at the store and customer are required to give order
according to their size and fitting; so along with their value, variety and convenience mantra
company also challenging to deliver customers order within 24 – 48 hours ones the transaction is
done. The success of company will depend on in term of quality and price and also delivery what
company is claiming! That is efficient logistic management.
INTRODUCTION

In the highly competitive business environment of today, companies find it difficult to maintain
its competitive advantage over others only developing innovative strategies pertaining to the
product, price, place and promotion. Though they have tried out various methods to build
competitive advantages for themselves like making change in the product design, pricing the
product differently, and even trying to reduce the cycle for the product to reach the retailers’
shelves from the manufacturing location, they have realized that competitors can duplicate these
efforts. Thus, the emphasis of all company today is to build a sustainable competitive advantage.
And logistics provides a means by which they can do just that.

Logistics is the complex process by which companies transport products, parts and material from
the place where they are manufactured to the place where they are required. Effective logistics
management requires that the actual status of goods and services be communicated in real time
to the various groups of the people involved in the logistics process. These logistics service
providers to improve their service by keeping a closer watch on inventory and taking the steps
necessary to avoid losing customers.

The aim of this paper is to create the conditions for efficient application of flexible
manufacturing based on Zero stock model (which is similar to just in time concept) and to enable
companies to produce higher quality of products according to market requirement. Furthermore,
especially in apparel industry customer tastes and preferences are changing rapidly. Customers
are demanding in term of quality, time and order fulfillment. In this context, apparel firm must
be more and more flexible and reactive to anticipate and to adapt such changes. There are several
reasons for the overriding importance being given to logistics by apparel business across the
world. These reasons include wider availability of alternatives to maintain cost and service
standard, need for location of out let closer to the market, the increasing shortage of raw
materials, and the perceived need for an effective system of computerized inventory control.

In this paper, we are foregrounding on Zero stock concept and examine the logistical
implementations needed to support retail operation in high demand variability industry through
an examination of “Cornerstone Brand” of “Zerostock Retail Pvt. Ltd.”
1. LOGISTIC

A. Definition :

LOGISTIC IS THE ART AND SCIENCE OF MANAGEMENT, ENGINEERING AND


TECHNICAL ACTIVITIES CONCERNED WITH THE REQUIREMENT, DESIGN AND
SUPPLYING, MAINTING RESOURCES TO SUPPORT OBJECTIVES, PLANS AND
OPERATION.

----SOCIETY OF LOGISTIC ENGINEERING (SOLE) 1974.

B. Origin/ concept of Logistic :

The origin of the term LOGISTIC has been traced to the Latin word logugea, which means a
lodge or hut. Logistic is often erroneously thought to be a purely military term due its initial
association with the military. Webster’s dictionary too defines logistic as “the branch of military
science having to do with procuring, maintaining and transporting material, personnel and
facilities.” History is witness to the fact that the most successful war campaigns have been the
ones in which the winning side was equipped with a superior logistic network. An efficient
logistic network was instrumental in quickly and efficiently transporting supplies, material,
equipment, and troops to the side of action.

In business too, logistic plays a similar role as in the military like for fighting a war, it require a
predefined objective, punctilious planning to achieve the objective, troops properly deployed and
achievement of objective at minimal loss of man and material, similarly marketing managers also
need a appropriate logistic plan that is able of fulfilling company objective of profit
maximization, cost reduction and same time satisfying demand of target customer.

Logistic is a complex process by which company transport product, parts and material from the
place they are manufactured to the place where they are required. Companies across the world
are increasingly realizing the importance of attaining a competitive edge over their competitors
by effective logistic management.

Inbound logistics + Material Management +Physical Distribution = Logistics

➢ Inbound logistics >>> The movement of materials received from suppliers like raw
materials for further production.

➢ Material management >>> The movement of materials and components within a firm
➢ Physical distribution >>> The movement of GOODs outward from the end of the
assembly line to the customer.

➢ Supply -chain management >>> It includes manufacture, supplier and also warehouse,
retailers and customer themselves.

A. Evolution of Logistics :

Fragmentation Evolving Integration Total Integration


1960 1980 2000

Demand forecasting

Purchasing

Requirement Planning Materials

Production Planning Management

Manufacturing Inventory

Warehousing Logistics Logistic

Material Handling

Industrial Packaging

Finished goods Inventory

Distribution Planning Physical Distribution

Order Processing

Transportation

Customer Service
Fragmentation 1960 This era was known as fragmentation era because everything done was
disintegrated.

Evolving Integration: At this stage of time new concepts of Logistical management were
evolving.

Total integration: In the present scenario because of technological advances logistics has
evolved as part of management.

B. Importance of Logistic:

Logistic has gained importance due to these trends:-

I. The location of retail outlets based on proximity of markets. During periods of energy
shortage, transportation has become primary concern of companies. So effective
logistic management helps companies minimize transportation cost and benefit them
in the long run.
II. The growing production efficiency, complexity of product lines and the increasing
shortage of raw materials are forcing companies to focus on logistics management to
ensure constant and steady supply of raw materials to manufacturing location.
III. The fundamental change in inventory philosophy is another reason for companies to
increase their focus on logistics is the belief that an effective system of computerized
inventory control will help them tide over and crisis that may arise of swings in
business cycle, change in interest rates, increase in cost of labor, etc.
IV. The advancement of new technologies assist managers to update sales and inventory
planning more frequently and faster, and factories can responds with more tractability
to fickle market condition.
V. The balance of power is shifting from manufacturer to trader in distribution chain.

A. Function in Logistics management:

Logistics is a complex process, involving several functions:-

Procurement /Purchasing:

Procurement is the process of buying goods and services for the user department based on
order specification given by that department.

Inward Transport:

This is the function in the logistic process in which part and components are moved for
storage in warehouse.
Receiving:

Receiving is the function in which the material is received at the warehouse for storage.

Warehousing:

It is the function in the logistics process in which the material received for dispatch is stored
for various duration of time. It serves as an efficient way to balance the demand and supply
of goods.

Stock Control:

It is the function in logistics that involves keeping track of the amount of stock present in the
inventory.

Order Picking:

Order picking is the function of picking or retrieving products stored in the ware house from
there their respective storage location to cater to customer order.

Material Handling:

Movement of material required for operation.

Outward Transport:

Function of dispatching to meet the user requirements.

Physical Distribution management:

This function in logistic management involves all those activities that help in the delivery of
the finished goods to the customer.

Recycling, Returns and Waste disposal:

This function comprises the reverse logistic process. It is the process in which the materials
and goods move from customer back to the manufacturer.

B. Strategic issues in Logistics Management:


Local and Global challenges in logistical management:

Local Challenges:

• Integration of logistic activities to satisfy the customer.


• Lack of qualified personnel involved in logistics management.
Global Challenges:

• Distance
• Documentation
• Coordination of intermediaries
• Cultural differences
• Government /political differences
• Globalization of the firms
• Flexibility and speed
• Supply chain integration

Some of the steps that could be followed to mitigate the above mentioned issues are ….

Performance:

• Better service for customer


• Improved productivity
• Assess JUST IN TIME SYSTEM and quick response needs
• By understanding the change in market place in terms of demand, emerging trend, and
nature

System structure:

• Better relationship with vender, customers and third parties to more effectively manage
the supply chain
• Better relationship within and across the organization

Technology integration

Technology is playing a key role in communication as well as in other processes in the


logistics and helping logistics firms to attend the competitive advantage. The efficient
use of electronic data interchange, artificial interchange, expert systems, communication
technology in the form of satellite and wireless communication, bar-coding and,
scanning.

1. Traditional system of logistics in apparel industry:

Under the traditional model of logistics operation, retailers of branded apparel had to give
order to manufacturing unit in advance of the selling season. In this traditional system
retailers had to estimate quantity ordered for different type of size and style based on
current fashion and trend. Once the order was processed by retailers, manufacturing unit
start its processing and did not allow the retailers to change in given order. The shipment
of stock between an apparel manufacturer and retail customer is large and low frequency-
usually once or twice in a season. Once the stock was delivered by manufacturer, the
retailers held the stock at central distribution center or as inventory in warehouse. During
the time of sale this stock would be further distributed to Organized/Unorganized retail
stores and to franchises of manufacturing company. Unsold goods were sold at discount
or to store for further sale.

2. The problem associated with the traditional Logistics system in apparel industry:

The apparel industry is highly volatile industry due to the continuous change in taste and
preference of consumer. Whatever is the latest fashion trend today, it will be outdated
tomorrow so there is always risk factor and uncertainty associate with apparel industry.
There is one question always remain in manufacturers mind regarding what product will
sell or not sell in any given season. In practical term, a retailer holding a large stock of
goods confronts Sales
increased costs both for carrying overstock that will not sell and stock-
out that sells beyond Order
dataexpectations. The costs of goods were also high due to the presence
of old logistic management. Basically three types of costs were high in old system:

• Undercutting of cost to clear out unsold goods


• Lost sales due to stock out
• Inventory cost

1. Steps towards improvement of Traditional Approach:

A. Scope of logistics management in Apparel Industry:

Deliver
Deliver
y
Figure 1: Logistic Operation in y
Today apparel industry is dominated by several brands like Park Avenue, Allen Solly,
Killer, and John Players. As a result, discount and mass apparel players are finding it
advantageous to introduce name brand exclusive apparel lines which enhanced their
brand image and increased in revenue. On the other side, more expensive brands are
trying to reduce costs and increasing unit sale, which offers same quality to consumer as
brand name without the higher price tag. Due to the presence of cut throat competition in
the market, apparel business organizations are concentrating on their competitive edge
over competitors. The Cost reduction is the main area where companies are working to
provide product at cheaper cost and logistics management is one of these tools that offer
effectual method of cost reduction. Now logistic industry is exploring innovative
technique for profit maximization and cost reduction with some ground breaking
technique like Just in time model and Zero stock concept.

B. Improving the Traditional Approach:

Initially the apparel companies had driven their all effort on reducing manufacturing
timing. And many manufacturers strongly believed that this could be achieved only by
maximizing efficiency in cutting, sewing, and dyeing. Many efforts also directed towards
the modifying worker productivity and being able to manufacture apparel faster and
cheaper. This was strongly believed by apparel companies that price differentiation
strategy played a key role to survive in competition. But recent studies reveal that reason
behind the success of apparel companies is not only local optimization of manufacturing
process but also global optimization of logistic process. Effective utilization of
information technology and management practices provides competitive edge to
company over its competitors. Apparel Company who utilize IT tools for forecasting
demand, order processing and integration of MIS tools in logistics management, is able to
reduce unsold goods and to deal with cost cutting problem. This concept helps apparel
retailers to keep less inventory which leads to cost reduction and profit maximization.
In short, today’s scenario required a flexible supply chain system for successful retailing
where continuous adjustment of the product orders and transportation system capable of
delivering goods no sooner and later than is needed. The continuous adjustment in order
is needed because of the inherent difficulty with predicting customer tastes and
preferences.

1. Use of third party logistics system in Apparel Industry:

A. Efficient supply chain and logistics management are crucial for growth of
apparel industry.
Safexpress Pvt Ltd, Leaders in the Supply Chain and Logistics Industry sponsored the
‘Pure and Play’ and ‘The Shop’. The conference-cum-exhibition was held from 29th June
to 1st July 2008 at Pragati Maidan, New Delhi, India. The event was attended by Industry
veterans like Subhinder Singh, MD, Reebok India; DPS Kohli, CMD, Koutons; Andreas
Gellner, MD, Adidas India; Deepak Deshpande, V.P. (Retail),Bata India; Charath
Narsiman, CEO, Indian Terrain; Roshini Bakshi, Country Head, Disney India; Subhash
Chhabra, President, Globus; Sanjay Sahni, MD, Rituwears; Tarun Puri, MD, Nike India
and many more.

Apparel Industry is a huge segment of the Indian Economy. The total size of the Indian
apparel industry is estimated to be US$ 31 billion.

The purpose of this three-day event was to cast the attention of apparel business
organizations towards minimizing the stock turns and increasing profit margins by way of
using the best supply chain practices.

Mr. Vineet Kanaujia, GM – Marketing, Safexpress stated “The Apparel Industry in India
is a highly dynamic industry witnessing change each day. The changing lifestyle patterns,
the ever-increasing purchasing power and the growing style-consciousness in the youth
are the main factors driving the growth of this Industry
The full potential of the industry would only be realized when SCM and Logistics
services begin playing a bigger role in the current business scenario.”

A seamless movement of products right from pick-up of raw or semi-finished products


from the manufacturer, to managing the packaging of products, to delivering the products
right at the store-shelves is a challenging task.

Apparel Industry holds a huge business potential for logistics Industry. With advanced
technology and streamlining of operations.

The share of apparel business in overall portfolio of logistic industry is the largest.
Logistic industry organizations are continuing innovating and providing customized
solutions to the apparel industry. This increasing role of logistics players are developing
third party logistic concept in apparel industry. For example a new brand Cornerstone is
working with third party logistic system on zero stock concepts to meet with competition
and to gain competitive advantage over existing apparel brands.

B. Third party logistics (3PL)

Third party logistics is simply the use of an outside firm to provide perform all or the part of the
firm’s material management and product distribution function. 3PL relationships are typically
more complex than traditional logistics supplier relationships: they are true strategic alliances.

3PL began in the 1980s, was a $45.48 billion industry in 1999, and grew by 24% to $56.4 billion
2000. The use of third parties logistics is most prevalent among large companies. Third –party
logistics are finding it hard to persuade small companies to employ their services, although this
may change use as the use of 3PL more prevalent and as 3PL provider make a larger effort to
develop relationship with smaller companies. Today role of 3PL not only restricted to
Warehouse Management Systems (WMS) but enhanced by activities billing features. Now the
responsibility of a 3PL extends beyond the four walls of warehouse. In current market condition
clients are commonly asking to manage everything from the front-end where orders are captured,
all the way through the warehouse, shipping dock, and to the customer’s location where delivery
is made. These are the possible area, being asked to handle to extend beyond walls.

• Warehouse Management
• Order Management
• Activity Billing

• Transportation Management

• Customer Relationship Management

• Accounting Human Resources Management

• Productivity Management

• Business Intelligence

A. Advantages of 3PL

• It allows a company to focus on its core competencies


• Provides technological flexibility, update information technology and equipment as
requirement of Retailers, companies in a quicker and more cost - effective way
• Provides flexibility in geographic locations, service offerings, resources and workforce
size

A. Disadvantages of 3PL
• Loss of control inherent in outsourcing a particular function especially in outbound
logistics where 3PLcompany employees themselves might interact with a firm’s
customers

1. A Look at New Methodology of Inventory Control and Logistic Management:


@ “CORNERSTONE BRAND” of “ ZEROSTOCK Retail Pvt. Ltd.”

A. Origin:
Zero Stock Retail Private Limited is a Hyderabad-based privately funded company founded by
Wharton MBA graduates Mr. Madhukar Gangadi, chief executive of MedPlus Health Services
Pvt. Ltd, which runs a chain of medical stores. Company has come with its “Cornerstone” brands
of menswear through 20 exclusive outlets in the “happening city”. The company offers men’s
formal and casual wear. Company has more than 300 outlets across the major city and town and
plans to open30 stores in cities such as Kolkata, Bangalore, Chennai, Pune and Jaipur.

B. Concept of Zero stock:

The company is following Zero inventory model. Zero stock model carries no inventories at
store and work in such an manner that ensures the stock is delivered by manufacturer when it is
required. It is a new concept in apparel industry in India and untested. It is becoming popular
with concept such as Just-in-time approach that is similar to it. Central elements in zerostock
model are:

• No stock of any kind


• Flexibility in every situation, especially in relation to customers
• Reduce time of delivery
• Total quality control and cost reduction
• Completely prevention maintenance

Zerostock Retail Pvt. Ltd is first company come in market with such type of concept to introduce
its brand Cornerstone. It is an innovative idea for retailing men’s wear –there is no readymade
apparel available at the store only sample wears for trial and a display of designs and fabric.
Customers choose the cloth from a set fabric sample, as also the style and cut. The finished
garments delivered in 24-48 hours. And customer can shop online too. Cornerstone, which is
laying claim to being the first customized apparel brand in country, offers shirts with neck sizes
between 36 and 46 cm and trousers with waist sizes between 28 inches and 48 inches. Company
also offers sizes 30,31,33,35 besides standard sizes like 32 and 34.

Variety, Convenience and Value is the company’s mantra. The company is claiming the widest
selection of the highest quality men’s clothing at price at least 30% below the market. Company
has tied up with AFL logistics provider for the delivery of finished goods. It has centralized
inventories in different location and also looking for more set up across the country. The reasons
behind the low cost of apparels compare to others brands are –

➢ Zero inventories in store-no blocking of huge amount of money:


All retail outlets of company are operating on zero inventories and only different type of
shades, pattern, and some trial wears of different quality are only available at store.
Company is maintaining its stock in warehouse and further delivers order at desire place
of end consumer by using just in time concept.

➢ Smaller real estate cost:


Retail outlets are working on smaller square feet area as stores are operating on zero
inventories model, so this concept is helping company to reduce real estate cost or
infrastructure cost and providing competitive advantage over other branded players who
are maintain big size outlets or showrooms.

➢ Effective utilization Third Party Logistic services and Just in Time concept of
logistics management.

A. Future plane of company

Menswear account for 45% of India’s Rs.89 000crore garment industry with this innovative idea,
Company expecting a great success in apparel industry and looking to expanding the companies
offering to footwear, jeans, sweaters and accessories such as ties socks and belt. In fiscal year
2009, company expects revenues of between Rs 30 crores to Rs 40 crores. Zero stock has
exhausted some Rs 50 crore rose from unnamed angel investors, it is looking to raise another Rs
50 crore from venture capital and private equity firm to support growth plans. In near future,
company is going to open more than 300 shops across major cities and towns, and by the end of
2009 the no of outlets would go up to 1000.

B. Order processing and Role of logistics at Cornerstone:

Manufacturing
On line
Unit
order
Customization of clothes
according to customer
Description of figure:
Delivery of order
I. with the help of
Customer:
3PL at customer
desiredcan
Customer place
give order by two ways:
within 24-48hr. 3P Order processing if
• First, by visiting retailLoutlet of company and here he can
stock measure
gets overhis size; can choose
different shades, designs. (computerized)
• Second, if the customer is confirmed about his size or once has visited the retail store the
he can also give order by online process. Customer can see all type of designs; pattern,
Warehouse
clothesReadymade
quality and how shirt/trouser will look price
like after it get manufactured through
apparels of particular category order
online process.

II. Retail outlet:

• There are zero inventories at retail store and it holds only some trial wear, folder for
Order processing through
different type of clothes material. In others retail out let only fix no of design and pattern
online system once the
are available and customer has to make purchase decision only from available stock
transaction has done by
unlike This zeros tock concept allow customer to choose from a wide variety of clothes.
customer
• One of the main fundamental problems which associated with apparel industry is to
satisfy and fulfill the demand of customers who are having odd sizes. This company is
Direct visit
Retailofstore
providing customization clothes according to the size of customers, so by using zero
to
Zero inventories,
stock concept company is also able toTrial wears,
capture Kiosk display
this market segment.
• Once the transaction has done by customer his order is delivered to manufacturing unit by
retail outlet through electronic data change or computerized online system.

III. Warehouse:

• Company has located its warehouse in Hyderabad and using central distribution system.
In warehouse company is only keeping some readymade apparel of particular price range
Customer
as company is not providing customization facility below certain prices. So warehouse
only receive those order form retail outlet which fall in this price category.
• Once the order received by warehouse it starts it’s processing and delivered consumer
desired order at desire place by using JIT approach and Third Party Logistic service.

IV. Manufacturing unit:

Company does cutting,


Fig 2:sewing,
Orderand dyeing of clothes
processing, at manufacturing
Zero inventories unit.
and Manufacturing
just unit
also does not keeping any readymade clothes; Manufacturing process only start when it receive
in time logistic function at Cornerstone Brand
order from retail outlets and directly from customers. There is no involvement of extra human
resources to take order from retail out let as all system is working on computerized system.

Manufacturing unit does these works:


• Supply stock to warehouse using just in time concept with the help third party logistic
• Supply customize order to end consumer

V. Delivery of order:

Supply of order is done by using service of third party logistics. Company has tied up with AFL
Pvt. Ltd., a logistics service provider company, for transportation of stock to warehouse and for
the shipping of customers order at desire place. AFL provides an extensive Express and Logistics
network offering a range of value-added services to its client. AFL customized products and
service portfolio provide its customers with a Unique Service dimension worldwide.

Some quick fact about AFL:

Domestic :

Reach : 1400+ destinations

Network
23 Hubs
:

50 Warehouses

1 million sq. ft. (approx) Area

International : 292 countries

Industries Served:

Consumer Durables

Automotive

Hi-Tech

Telecom

IT

Readymade Garments
Pharmaceuticals

1. Opportunities for Cornerstone Brand:

○ Fewer inventories needed at retail outlet for operations


○ Increase flexibility of manufacturing capacities
○ Shortening of manufacturing cycle
○ Small square fit area is require for retail outlet
○ Major cost advantage over competitors
○ Control on Undercutting of cost to clear out unsold goods
○ To cash Lost sales opportunity that arises due to stock out
○ Reduction in Inventory cost
○ More customer satisfaction with the help of customization of services
○ New market development by satisfying need of customers who has odd size of
clothes
○ Company is increasing customer awareness level by giving knowledge of fabric
material which in turn making more loyal customers to company
○ Development of new concept for whole apparel industry

1. Threats for Cornerstone Brand:

• Company operation is completely based on third party logistics if any uncertainty


happen during process it will leads to customer dissatisfaction.
• Co- operation and reliability between the customer and supplier
• Active engagement of all participants in reference to relation of objective
established
• Effective control of the material
• Delivery of order at customer place within 24 to 48 hours is again a challenging
task for a company.
• Company is facing challenges in order to change consumer perception about this
new philosophy.
• In most of the cases consumer do impulsive buying so in this specific area
company is losing customer as no stock is available at retail store.
• One of the big threats in front of company to compete and same time differentiate
itself from the tailors.

1. Conclusions
Logistic is a complex process and involve several functions and there are several reasons for the
paramount importance being given to logistics by business. We have examined that to improve
the retail process in apparel industry through strong logistics management, companies has to use
available IT tools and innovative approaches of logistics. Communication using satellite
technology and sophisticated devices make it possible for the various players involved in the
logistics chain of process to remain in constant communication with one another and with the
end consumer. Technology is playing a key role in the logistics function and helping firms to
attain a competitive advantage. Business are beginning to realize the need to focus on their
logistics strategy, integration of information technology in addition to advanced inventories
control approaches like Zero inventories model.
Zero inventories model is now latest approach in apparel industry to provide the flexibility in
manufacturing capacities, producing high quality of products in accordance with market demand.
It is the way to reduce the unsold goods, which has to be sold at lower price that save the market
down cost. This is the most appropriate way to shortening of manufacturing cycle. The logistic
chain is supporting the main principles of the Zero stock model and in this way it is making
strong connection between the supplier and the customer. Changing consumer taste and
preference is a continuous phenomenon and satisfying the need and want of customer is
challenging task for marketer. Zero stock model is a unique concept to understand the customer
psych and deliver the product in accordance with their desire. This Zero stock models is the tool
by which apparel Companies can produce high quality, best size of the product quickly and the
efficient transportation system can deliver the goods to customer when and where it is needed
and faster than traditional model. In India there is a huge market of apparels and have large
number of players, entry of Zero stock Retail Ltd. with innovative idea does make a difference
up to an extent but success of the company will depend on its ability to deliver what it promise to
its customer in terms of quality and value for the money and also making deliveries within 24 to
48 hours. The efficient logistics is one of the tools through which company will fulfill its
customer expectations.

2. Bibliography:
• “International Logistics Management” online data
• “The Modern Logistics Service Provider” By: Kevin Michel
• “The Logistics Sector in India: Overview and Challenges” By: Pankaj Chandra
and Nimit Jain (IIM- Ahmadabad)
• “Optimal Solution for Organizing the Logistics Process of JUST-IN-TIME
CONCEPTION” By: Slavica Cvetković, Nada Barac
• “High fashion, low price Logistic of Apparel Industry” By: Bradley Richard Yim
• “Designing and Managing the supply chain” By: David Levi and Edith Levi, Tata
Mc-Graw-Hill edition- II
• “Zerostock launches Cornerstone brand”. , Business line, Deccan Chronicals,
November 19/08
• www.Zerostock.com
• www.Afl.co.in