Fashion in Focus: The Inventory Planning Puzzle
b"Apparel demand has reached a new level of unpredictability. During the pandemic, the purchasing behavior pendulum has swung from weak sales amid early lockdowns to revenge spending in 2021. Historical data is therefore no longer a strong predictor of market performance.\\n\\nRetailers are also contending with supply chain disruptions, including expanded lead times and shipping schedules that threaten on-time arrivals of goods. The major risk has shifted from overstocks to understocks, and retailers have adjusted their buying strategies accordingly. In AlixPartners and Sourcing Journal\\u2019s recent \\u201c2021\\xa0Fashion in Focus\\u201d survey report, industry executives said they were planning for delays by buying earlier and ordering larger volumes of goods. But buying far out essentially means \\u201cbuying blind,\\u201d explained Joe Schmitt, a managing director at AlixPartners.\\xa0\\xa0\\n\\nAs the industry adapts and learns from pandemic pressures, there are still uncertainties in how to navigate planning.\\n\\n\\u201cI don't think anyone has a clear game plan moving forward around what exactly they need to do,\\u201d Schmitt told Sourcing Journal founder and president Edward Hertzman in a recent podcast conversation. \\u201cI think the theme is really, \\u2018How can we be as flexible as possible while still being differentiated in the market?\\u2019 And that balancing act is what everyone's trying to figure out right now.\\u201d\\nLearn more about your ad choices. Visit megaphone.fm/adchoices"