'The debate in fashion over inventory as an asset or a liability may never see an end. Only a few years ago, the CEO of one the largest fashion retailers in the United States said, "I'd rather lose sales than carry (risky) inventory."
'What an incredible statement,' notes Bob McKee in an article in Inbound Logistics headlined 'Optimizing the Fashion Supply Chain.' 'The head of a major retailer willing to lose sales before taking a risk on inventory - which frankly seems to be pretty fundamental to the traditional retail model.'
'It's often said, "You can't sell what you don't have" - but you also can't sell what consumers don't want, Infor's global fashion industry strategy director continues.
'The answer to the inventory challenge is not whether or not it's an asset or liability. The reality is that you can't be in retail if you have no inventory. The secret is to move from the current western fashion model of design, source, sell, to an emerging model of design, sell, source. A model that shares the inventory commitment throughout the value chain - and the key to success lies in the ability to deliver from the closest point in the value chain to the purchaser.'