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(QR) is an industry-wide strategy for quick and precise replenishment of fast-selling merchandise. Today, many apparel companies are participating in computerized partnerships with retail customers and fabric suppliers, which is enabling them to accelerate their manufacturing process and provide customers with more timely delivery of currently wanted merchandise. By means of electronic data interchange, participating apparel producers receive an instant and continuing flow of information about what their "retail partners" are selling by style, sizes, and colors, and what needs to be replenished. This information enables them to predetermine production plans and schedules more precisely by discontinuing slow-moving styles and concentrating on best sellers, thereby reducing costly markdowns and increasing turnover. Also, by receiving retail reorders and giving fabric reorders directly into their interlocking computers, they can bypass the manual order entry process. For apparel producers, the implementation of a QR program requires a change in their traditional operational strategies and production planning which formerly focused on the reduction of production costs and is now focusing on the reduction of production time. It also requires a clear working relationship with their retail customers and their fabric suppliers.
The first QR partnerships were between large-volume producers and retailers, each of which had the capital to invest in the necessary but costly electronic equipment. For example, Levi Strauss, which has a computer-to-computer network with the giant Wal-Mart retail company, affixes identifying bar code labels on its merchandise and provides elaborate software services to track the sales in its stores, Dillard's, one of America's largest department stores, is linked to major suppliers with which it electronically shares information to place reorders and to pinpoint trends. Among its suppliers are Sara Lee's Hanes Hosiery and Haggar. These and other QR participants claim that the program has increased their sales tremendously.
Fast delivery (through Quick Response) is one of several added expectations retailers have of their apparel suppliers in recent years. Retailers now prefer to place smaller orders for apparel, with the expectation that they will be able to get quick replenishment from the manufacturer as items sell. Some companies refer to this as their rapid replenishment program. Retailers prefer this over previous strategies in which they purchased much larger amounts of merchandise early in a season. Retailers like this approach because they have less money invested in inventory and they are relieved of some of the risk if items do not sell as expected. Manufacturers often have to assume more burden for carrying inventory in some of their relationships with retailers.
Because manufacturers have worked in Quick Response partnerships with retailers, much shorter planning cycles have changed the whole concept of apparel merchandising. Instead of planning and committing for a season, manufacturers and retailers work much closer to the actual selling season. This is known as
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Participants