Few academicians suggest that postponement strategy works well with basic products in a dual

supply chain. For example, basic prototype of a pair of jeans can be built before hand and last
minute adjustments of making it slim or putting any design can be done.
Case of Zara
Zara has dual supply chain where in one of these caters to fashionable products which have small life
time and other caters to basic products which include denims and similar that are needed forever.
The demand for basic products can be forecasted with minimal error whereas forecasting demand
for fashionable products was very difficult and inaccuracy was high.
For fashionable items, Zara focuses on reducing lead time so that product is available at the right
time before the fashion goes off. They try to procure it locally in order to have shorter lead times.
For basic products, Zara focuses on low cost production while considering economies of scale. They
use production in low cost countries such as those in Asia. This might have longer lead times but it is
not given importance.
Dual sourcing
Since there are lot of uncertainties when suppliers are present across world such as changes in
exchange rate, transportation costs and longer lead times because of transportation delays. It is
suggested to have second supplier for some of the products. Spreading the suppliers across
geography is recommended
Lectra has a concept of dual sourcing especially for high fashion products which have to be on shelf
at right time else their value becomes negligible.
Quick response supply chain
In 1980s, US textile industry was facing difficulties in keeping up with the demand and reducing the
level of inventory. Quick response was developed in US textile industry in 1984 to reduce the
inefficiencies in the supply chain reducing inventory levels, improve merchandise quality, increase
worker productivity etc. QR system relies on the sales data and hence IT plays a very important role.
It requires information system for every player in the chain so that data sharing is easy and accurate.
New improved packages which help in forecasting better, frequent re-planning can be incorporated.
Intelligent systems such as fabric measurement which measures thickness, compression, surface
properties and tailorability prediction system which models the interaction of fabric with machinery
etc. can be used for better planning and execution. In QR system reduces the lead time across the
value chain and also helps implementing postponement strategies
Use of Information Technology
Use of IT can help the industry in collecting, analysing and sharing data which basically is the main
component in deciding the working of supply chain. Sharing of information will lead to reduction of
bullwhip effect, accurate forecasting would be possible and many more benefits.
CPFR
Collaborative Planning, Forecasting and Replenishment is being used in other developed countries. It
helps the partners in sharing forecast details and database. If there is discrepancy in the forecast
between different players of supply chain, the system triggers an alarm which may help the players
to find errors in their forecasting. Hence, the partners can collaborate and plan according to the
demand for the industry.

RFID
Radio Frequency Identification helps in improving tracking and traceability of products in the entire
supply chain. It helps maintain real time visibility of the products at all stages starting from
warehousing to the sales floor.
Note: India lacks both CPFR and RFID in its textile industry due to which it is lagging behind other
nations in terms of information flow in the chain which is the most important factor in determining
lead time
Intelligent Supply Chain Management System
The system requires the members to work in collaboration for which it captures required
information and sets procedures for accountability, performance measures and conflict resolution.
All the partners make collaborative efforts in forecasting, purchasing, production, inventory
management and synchronise delivery and distribution schedules. The following diagram shows the
framework for intelligent supply chain management system for textile industry:

Partners interface Every partner shares information about profit models and profile which is used
to develop better relationships
Data Mart It contains data for specific supply chain activities
Partners data warehouse It is a central data warehouse which has data related to partners,
products/ services
SQL By using tools for querying and analysing data, partners intelligence and information can be
derived
Knowledge Management Capability Good knowledge management capabilities leads to
conversion of partners data to useful partners knowledge