Supplier perceptions of quick response systems

Abstract

Purpose The purpose of this research is to explore supply chain management issues in the Scottish textile and clothing industry, such as company awareness of automatic replenishment (AR) systems, quick response implementation (QRI), and relationships within the supply chain. Design/methodology/approach Face‐to‐face interviews were undertaken with 33 Scottish suppliers. Findings Results indicate that less than a third of the companies surveyed in Scotland had implemented AR/QRI systems and that many supply chain members had not fully understood the benefits of implementing information technology (IT) to support an AR/QRI strategy. They perceive it more as a strategy for retailers than as a virtual supply chain strategy. Research limitations/implications Since this study was limited to 33 Scottish suppliers, findings can only be used as a guide for further research into the area. The next stage of this research will be to gather more responses from UK and US suppliers of fashion garments, as well as to undertake in‐depth interviews with retail buyers in order to explore the criteria they now use for establishing supplier relationships. Practical implications The paper identifies advantages which manufacturing management could achieve: namely to improve planning, reduce stockholdings, increase production and by improved communication become a preferred supplier. Originality/value In order to survive, Scottish suppliers have to sustain competitive advantage by ensuring that they have an efficient stock management system. For manufacturers of fashion goods, speed is a priority that incurs higher production and transportation costs that can be offset against fewer mark‐downs and higher gross margins. Thus, QRI is a must for multiple fashion retailers selling “own brand” merchandise, to provide them with competitive differentiation in the high fashion end of the market. This means that suppliers need to build relationships with these retailers and implement QR systems to stay in business.

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