15. Technology, Innovation and Supply Chain Management Competitive Sessions Demand-supply Chain Management for the Chinese Fast Fashion Apparel Industry
Ying Ye School of Business IT and Logistics, RMIT University, Australia Email:
[email protected]
Dr Kwok Hung Lau School of Business IT and Logistics, RMIT University, Australia Email:
[email protected]
Leon Kok Yang Teo School of Business IT and Logistics, RMIT University, Australia Email:
[email protected]
15. Technology, Innovation and Supply Chain Management Competitive Sessions Demand-supply Chain management for the Chinese fast fashion apparel industry
Abstract This paper explores the applicability of the demand-supply chain management (DSCM) approach to help improve the supply chain performance of the Chinese fast fashion industry. Based on a comprehensive desktop research, the paper provides a thorough literature review on the paradigm evolvement from demand chain management (DCM) to DSCM and investigates the current supply chain approaches used by the apparel industry in China. The paper attempts to develop a theoretical DSCM framework that incorporates the various underlying drivers and obstacles of DSCM application. The proposed DSCM framework extends the conventional one-size-fits-all solution by advocating a dynamic outside-in thinking that integrates marketing value stream with multiple supply chain network solutions under an aligned organizational culture and leadership style. Keywords Supply chain Management (SCM); Demand chain management (DCM), Demand-supply chain management (DSCM), Responsiveness, Efficiency and Innovativeness
1. INTRODUCTION Fashion textile (FT) industry has raised the concern in the study of supply chain management (SCM) for many years. There are many studies targeting the dynamic characteristics of it with many different kinds of SC solutions (Bruce, Daly, & Towers, 2004; Castelli & Brun, 2010; Christopher, Lowson, & Peck, 2004). It could be traced from the early traditional one-size-fit-all solutions of lean, agile or leagile strategy to recently overarching approach that aligning market management with supply capabilities. The contemporary study presents the exploratory idea of integrating all these strategic solutions and packing them into flexible combinations for segmented value streams under demand-driven supply chain (DSC) paradigm (Jüttner, Christopher, & Baker, 2007; Masson, Iosif, MacKerron, & Fernie, 2007). With the growing complexity of current global context, the success of a FT company is largely determined by how the organization design its network package to achieve the optimal balance of SC responsiveness and efficiency (Christopher et al., 2004). Retailers that can successfully manage the complex supply network to achieve supply chain speed and flexibility will maximize profits when they do
15. Technology, Innovation and Supply Chain Management Competitive Sessions meet market needs, while at the same time minimizing the penalties associated with missing the market (Masson et al., 2007). Chinese market as one of the most influential market in the global FT trade (Candace, Ngai, & Moon, 2011), undergoes dramatic challenges for recent years. From macro-environment perspective, since the 2010 labor strike triggered huge labor-cost raising, Chinese economy is gradually losing the advantage of world factory position (CN, 2011, 2012). The model of OEM and mass production is confronted with phasing out (Chuang, 2008). From industrial development perspective, in line with many fashion trends taken-over, large invasion of international fast fashion retailers put a fierce competition in the local market after 2010 with many famous brand launches, such as Gap, Zara, H&M, Uniqlo, C&A (Li & Fung, 2011). Furthermore, consumers who are largely exposed to these fickle changes tend to shop with more fashion consciousness and savvy buying behaviors (Dickson, Lennon, Montalto, Shen, & Zhang, 2004; Flaven, 2013; Parker, Hermans, & Schaefer, 2004; Zhang, Li, Gong, & Wu, 2002). Figure 1 shows the various issues faced by the local fast fashion industry categorized into three general aspects. In this context, these challenges add more supply chain complexities for the local FT industry. Compared with global fashion brands, domestic brand retailers have less marketing experience result from years of industrial focus on labor-intensive manufacturing(Chan, 2011). Some of them try to jump on the ‘fast’ fashion bandwagon as a way-out with imitating classic successful model which ends up with model dislocation and fatal lost (International Trade Centre, 2011; Lu, 2011). Which way should Chinese FT industry go in this critical transitional trend? A more dynamic solution tailored for local FT environment would be urgently needed. Though there are many SCM studies focusing on the research of global FT industry, limited research has been done upon the Chinese FT industry. According to the literature review, it lacks of systematic studies in this field from the overarching perspective which could not only focus either on supply capability strengthening or marketing behavior analysis but integrate both from macro- institution and organization settings. Meanwhile, issues like new economy transition, specialized institutional environment, diverse customer segmentations, and transforming consumer psychographics, add more
15. Technology, Innovation and Supply Chain Management Competitive Sessions complexity for supply chain operation in local FT companies. It could be preliminary seen, a more dynamic outside-in solution, which configures multiple supply chain networks based on separated value streams, would be needed for the local FT industry. In this study, demand-supply chain management (DSCM) is proposed as an overarching collaborative solution for the current Chinese fast fashion industry. The term and concept was introduced by Hilletofth (2011, p. 187) as “… the management of a supply chain network that links customers and suppliers together through market segmentation, strategic alignment, and differentiation of supply solutions with the objectives to improve efficiency through value creation and waste reduction and enhance responsiveness by meeting diverse customer needs.” DSCM requires not only integration of marketing strength and supply chain capabilities at the demand chain management level but also requires the alignment of organizational culture and leadership style with the external market (Hilletofth, Ericsson, & Christopher, 2009; Hilletofth & Hilmola, 2008; Hoover Jr, Eloranta, Holmström, & Huttunen, 2002; Jacobs, 2006; Lau, 2012). The purpose of this study is to explore the possibility of applying the DSCM approach to help improve the demand-supply chain performance of the Chinese fast fashion apparel industry. The research question is as follows: How can Chinese FT supply chain network and operation be restructured and aligned with market demand under DSCM approach for performance improvement? This study reviews current literature research on DCM and DSCM across a broad spectrum and then highlights existing fast fashion demand and supply network studies conducted in the context of China. A framework specifically tailored for the Chinese fast fashion industry is proposed. The paper is structured as follows: First, a thorough literature review is given on the DSCM definition, paradigm evolution and the benefits that bring to the current supply chain network and fast fashion industry. Based on historical literature and case studies review, the necessities and challenges when DSCM is implemented in the real industry will also be elaborated. Then, a theoretical DSCM framework based on alignment theory (Chorn, 1991) for Chinese fast fashion industry is proposed and presented.
15. Technology, Innovation and Supply Chain Management Competitive Sessions After that, the methodology of the study, which is primarily a desktop research with secondary data, is discussed. Finally, limitations of the study are discussed and directions of future research are also suggested. 2. LITERATURE REVIEW 2.1 Evolution of Demand Supply Chain Management DSCM is a concept or approach that merged from Supply Chain Management (SCM) and demand chain management (DCM). The Conventional SCM practices began in 1980s optimize internal production efficiency with supply-focused process comprising inbound logistics, operations and outbound logistics (Oliver & Webber, 1982; Priem & Swink, 2012). It aims at cutting cost and refining the intra-business processes (Esper, Ellinger, Stank, Flint, & Moon, 2010). SCM practices gradually became demand-drive due to the emphasis on consumers/customers and the change in the way products are distributed and manufactured ((Langley, Gibson, & Novack, 2008)). The change brought about the need to manage supply chain from a demand perspective that considers the end-users of a company as the departure point and not its final destination (Wieland & Wallenburg, 2011). Porter (1985) first put forward the concept of disaggregation of two paradigms. In this regards, the whole value chain is separated into supply activities and demand marketing service. According to Porter (1985), Marketing, sales and service on the end half of the value-chain, and collectively driving and sustaining demand, are the three main elements of the demand chain (Figure 2). Christopher (2005, p. 5) also argues against the limitations of the uni-dimensional, cost-focused supply chain and suggests the following: “Supply chain management should be termed demand chain management to reflect the fact that the chain should be driven by the market, not by suppliers. Equally the ‘chain’ should be replaced by ‘network’ since there will normally be multiple suppliers and, indeed, suppliers to suppliers as well as multiple customers and customers’ customers to be included in the total system”
15. Technology, Innovation and Supply Chain Management Competitive Sessions DCM preceded the SCM concept and evolved two stages from half-realization awareness stage to real completion stage in the market place (see Table 1). The first stage is the so-called market-driven supply chain management or demand-driven supply chain (DDSC) which started to concern demand fulfillment with more agile supply chain strategy due to the bullwhip effect, inventory excesses or shortage (Schelmetic, 2013). However, the focus is still on the question of “what customers want” instead of “why and how” with demand treated as an exogenous condition (Schelmetic, 2013). For example, Holmstrom et al. (2001, p. 24) compare the supply chain with customer’ demand chain with the linkage of both for demand-supply chain proposition and conclude the following: “Demand and supply management are linked in two places- the order penetration point and valueoffering point” In the second stage, the demand chain is considered as an entity in its own right that involves the coordination of marketing role with supply chain processes or capabilities. It is a broader scope connecting marketing factors such as customer behaviour study, marketing planning, branding with actionable strategies and plans for the whole groups of firms in the network (Langabeer & Rose, 2001). Under this notion, the essence of DCM is the synergy between marketing management and SCM with tight demand creation and fulfillment coordination (Hilletofth, 2007; Jüttner et al., 2007; Rainbird, 2004; Walters, 2006). The objectives of DCM are to attract and retain desirable customers and improve its product positioning (effectiveness) in profitable markets (efficiency). To achieve this, it may involve managing unprecedented amount of complexity in a volatile marketplace, while coping with long distances, trimmed budgets, and perhaps reduced manpower (Hugos, 2006). The growing need for DCM reinforces the importance of processes in demand and supply network and also serve as the basis of DSCM approaches (Hammer, 2003; Trinca, 2003). 2.2 Studies on DSCM The focus from DCM to DSCM highlighted the evolving nature of supply chains that involve multi-disciplines and broader business scopes. As the supply chain requirements change over time, the
15. Technology, Innovation and Supply Chain Management Competitive Sessions definitions of DSCM have also been updated to reflect the changes that now encompass process-driven coordination among demand and supply chain network (see Table 2). The literature review reveals that recent studies have taken a holistic approach to understanding DSCM and take into consideration or macro and micro business processes. Since marketing function is identified as a key factor in DCM, researchers have taken a step further advocating DSCM be a more practical-focused analysis encompassing all cross-disciplinary processes without strict functional organization boundaries (Jüttner et al., 2007; Rainbird, 2004; Van Goor, 2007). Hiletofth (2011, p. 187) defines DSCM as “an approach to gain a superior competitive advantage by balancing cost efficiency, responsive effectiveness, differentiation and innovativeness process across functional organizational and inter-organizational boundaries”. The study embraces the overarching proposition of DSCM that incorporates organizational capabilities within the value proposition from a management perspective. Recent study by Baghai, Coley, and White (2000) suggests the organizational capabilities that embedded in a company’s people, processes and institutional knowledge are basic value catalyst to enhance the fusion between supply and demand drivers. Lau (2012) suggests of DSCM as a new field of modern study relating to the holistic demand supply chain collaboration not only from combination of marketing strength and supply chain capabilities but also corresponding adjustments in business strategy, leadership style and organizational culture. Gattorna (2010) also stresses the important role of human resource in the dynamic alignment framework by integrating marketing rules, internal supply chain strategies with the internal culture and leadership style. To serve for better understanding DSCM under diverse business settings, Table 3 summarizes the historical literatures via stages, disciplines, and industries categories. The literature review also highlight the research in DSCM is still limited and mostly are exploratory studies within few industries. Only few research studies to date focus on studying the contemporary DSCM from a broader multiple disciplinary perspective. The success of DSCM requires heavy financial investment and structural changes in the long run (Hilletofth, 2012). It has also been identified that Chinese companies have not yet to fully understand the implications of adopting DSCM
15. Technology, Innovation and Supply Chain Management Competitive Sessions within their businesses e.g. supply chain collaboration (Ericsson, 2011; Hilletofth, 2011), IT support (Walters, 2008), leadership (Jüttner, Christopher, & Godsell, 2010). A summary of the enablers and barriers to DSCM implementation is summarised in Error! Reference source not found.. Although the arguments (references) for DSCM is rich, not much research has been done on how the processes should be integrated and how implementation issues may differ in varying contexts e.g. countries and industries. This paper contends that DSCM can be a model stimulating new ways of operation to optimize the fashion apparel supply chain in China with its complex economic and institutional background. 2.3 DSCM in the Fashion Industry and Chinese Fashion Apparel Market A systematic literature review via computerized data retrieval via 64 business relating databases including e-journals, industrial news, newspapers and reports, e-books and thesis is carried out at the first stage. Journals and books which closely relate to the topic are initially focused and several closed-relating SCM databases are followed by regular retrieval for updating information and articles. Despite the rich literature on fashion industry’s SCM, only few studies have been conducted for DSCM and in particular for the Chinese fashion industry (See Error! Reference source not found. & Table 6). Existing studies in Chinese fashion industry supply chain field tend to be business reports that emphasises on marketing, branding to support supply chain neglect the need to consider demand as the main driver of the supply chain (See Error! Reference source not found.). Most of researcher mainly put focus on its specialized Chinese GuanXi network and institutional model from one perspective of marketing side whereas the integration between SCM and marketing management in a deeper level is hardly been explored. This also demonstrates a lack of understanding of the enablers and barriers to DSCM in the context of the Chinese Fast Fashion industry. The proposed research aims to investigate the readiness of the Chinese fast fashion companies in the adoption of DSCM by proposing the use of the alignment theory (Chorn, 1991). 3. THEORETICAL UNDERPINNING AND PROPOSED FRAMEWORK To provide a theoretical underpinning for the approach, alignment theory is used to account for the need to match supply chain capabilities with marketing demand and align the internal competences with
15. Technology, Innovation and Supply Chain Management Competitive Sessions the external institutional environment and leadership style to develop corresponding supply chain solutions. The alignment theory (Chorn, 1991) contends that the strategic fit of a firm is in essence the matching of the organization with the external environment. The principle considers the degree of alignment that exits between market environment, organization culture, leadership style and company strategy (Chorn, 1991). The alignment theory concludes that there are four types of ‘logics’ sectors in the market, which are Production, Administration, Development and Integration. Each of them has its coordinating strategic solution in terms of four elements, which are competitive situation, strategy, and organization culture and leadership style. The optimal marketing alignment exists when the logic sets bear a close similarity with each other in these four elements (Figure 3). It provides a theoretical basis for DSCM (Hilletofth, 2011), which requires not only demand-supply chain collaboration, internal infrastructural support, but organizational competences, firm-based principles to enhance the demand and supply chain performance and competitiveness to the company. Therefore, successful companies know how to align its supply chain solutions with the customer requirement by using the methods of market segmentation, price discrimination or other combination of supply management. Based on the underpinning theory and the review of the current situation of the Chinese fashion apparel industry, this paper puts forward the following two propositions: Proposition 1: From a marketing perspective, different market segments in the Chinese market should be identified and supplied with relevant supply capabilities under the notion of DSCM to achieve better performance. Proposition 2: The supply chain operation in the Chinese fast fashion industry should be closely aligned with the special leadership environment and culture background in China for better performance. Based on the literature review and the two alignment theories discussed, a tentative framework to investigate the feasibility of applying DSCM to the Chinese fast fashion industry is proposed (Figure 4). The framework gives a direction with the purpose of testing the underlying drivers and obstacles for DSCM application in China. The framework attempts to show that true DSCM requires end-to-end DSC
15. Technology, Innovation and Supply Chain Management Competitive Sessions collaboration involving not only combination of marketing strength and supply chain capabilities but also changes in organizational culture as well as leadership style to develop new strategy to respond to changing customer demand. The highlighted part in the framework emphasizes the essence of DSCM which incorporates organizational leadership into value chain/demand chain management. Findings from this study identify the potential enablers and barriers of DSCM application in the Chinese FT industry. With further refinement, the proposed framework can serve as a model to test the various relationships between the enablers, barriers and actual DSC process for industrial supply chain optimization. 4. PROPOSED RESEARCH METHOD This study uses a desktop research to review the literature comprehensively on the paradigm evolvement from DCM to DSCM. It also investigates the DSCM application, if any, in the fashion apparel industry of China and the general awareness of DSCM in the fast fashion apparel sector. Desktop research, which is similar to the case study method, is appropriately for preliminary exploration of a problem which is not yet clearly defined or fully understood. It provides the required flexibility for investigation when a “how” or “why “question is being asked about a phenomenon (Yin, 1994). The approach is also considered suitable for studying areas where the experiences of individuals and the contexts of actions are critical or where the theory and research at their early, formative stage (Williamson & Bow, 2002; Yin, 2008). The approach has been widely used in exploratory study of DSCM research (see for example (Hilletofth, 2011, 2012; Hilletofth et al., 2009; Hilletofth, Ericsson, & Lumsden, 2010; Hilletofth & Hilmola, 2008; Lau, 2012) and SC strategic design for the textile and the apparel industries (see for examples (Bruce & Daly, 2006; Bruce et al., 2004; Cao, Zhang, To, & Ng, 2008; Jacobs, 2006; Kumar & Arbi, 2007). A systematic information retrieval was undertook which include 64 databases on business relating databases which includes 9 main peer-reviewed logistics and supply chain management journal databases and 10 databases on latest fashion and textile industry news, marketing databases. e-book collections, evideos and news and newspapers. A two-stage literature review was performed. First, relevant articles
15. Technology, Innovation and Supply Chain Management Competitive Sessions published in reputed international journals, especially those reporting findings on fast fashion studies, were reviewed and summarized. Then, information was also collected from industry news and reports as well as recent conference and seminar papers and newspapers. Special focus was also placed on studies on the application of DCM and DSCM in the current Chinese fashion textile development. The priority of resources take the sequence from broad syntheses of the literature from around 500 articles to 50 specific journal articles and books then followed by looking for recent conference papers on the keyword topics by regular time. 5. CONCLUSION AND FUTURE RESEARCH Through a comprehensive desktop research with analysis of secondary data, this study has investigated the current studies of cutting-edge DSCM and its nascent understanding for Chinese fast fashion apparel industry. DSCM as an overarching contemporary approach has not been fully investigated in the real market. A comprehensive literature review on the Chinese apparel industry reveals that most of the studies about Chinese FT market stand on the ground of either SCM or marketing management perspective in a broad sense. This study contributes to knowledge by proposing the integration of both from managerial outside-in manner under DSCM perspective. The value of applying the dynamic approach of DSCM will be amplified when it is tested in a dynamic Chinese environment with multipurpose consideration. This paper fills the gap by proposing the framework and finding the potential drivers and obstacles of DSCM to understand the appropriateness of applying DSCM to the Chinese FT industry for network improvement. Supported by further studies in actual practice, the findings of this research will contribute both to knowledge as well as actual supply chain management practices in the industry. The proposed framework gives a preliminary guidance for the industrial development and testing based on the preliminary research of literature review and desktop research. Although, it has contributed to knowledge by providing a snapshot of the current situation, the use of secondary data inferior to using primary data to gather more in-depth information to explore how DSCM could be imbeded to optimize
15. Technology, Innovation and Supply Chain Management Competitive Sessions the real local fast fashion industry in the case of China. Some practical drivers and obstacles to implement in the identical Chinese industry needs more experimenting research to further validate the feasibility result. Therefore, future research could focus on employing in-depth case study or questionnaire survey to collect disaggregated data and business case-study from practitioner to further refine the framework and facilitate the development of DSCM practice.
15. Technology, Innovation and Supply Chain Management Competitive Sessions Figure 1- Challenges faced by Local Fast Fashion Industry in China
Figure 2- Demand Chain Structure (Porter, 1985) Value Chain Supply Chain
Sourcing
Manufacturing
Demand Chain
Distribution
Marketing
Sales
Service
Table 1- Two Developing Stages of DCM Stage Phase Ⅰ : Replacement of SCM (Ontology)
§
§ §
Synopsis A more narrow definition of DCM based on distinction between the efficient physical supply and the market mediation roles, which defined the term as market mediation supply chains Regarding demand as exogenous condition Addressing the issues in the frame of SCM definition
Studies (Goldman, Nagel, & Preiss, 1995); (Fisher, 1997); (Cooper, Lambert, & Pagh, 1997); (Vollmann & Cordon, 1998); (Srivastava, Shervani, & Fahey, 1999); (Lambert & Cooper, 2000); (Childerhouse, Aitken, & Towill, 2002); (Christopher & Payne, 2002); (De Treville, Shapiro, & Hameri, 2004); (Womack & Jones, 2010);
15. Technology, Innovation and Supply Chain Management Competitive Sessions Phase Ⅱ : Synergies between marketing and SCM (Epistemology)
§ §
§
Integrating demand and supply orientated processes It is suggested to view DCM as a macro level process which includes all activities that companies undertake in their quest to create and deliver needs-‐based customer value propositions By differentiating products and delivery, sourcing processes to proactively satisfy different customer needs with distinctive SC solutions
(Slater, 1997); (Mentzer et al., 2001); (Baker, 2004); (Rainbird, 2004); (Flint, 2004); (Walters & Rainbird, 2004); (Walters, 2006); (Christopher, Peck, & Towill, 2006); (Jüttner et al., 2007); (Hammer, 2003)
Table 2- Definitions of DSCM Definition “The management of supply production systems designed to promote higher customer satisfaction levels through electronic commerce) that facilitates physical flow and information transfer, both forwards and backwards between suppliers, manufacturers, and customers” (p. 692). ‘’A set of practices aimed at managing and coordinating the whole demand chain, starting from the end customer and working backward to raw material supplier” (p. 667). It aims to provide superior customer value at lower cost by organizing the company around understanding how customer value is created cost efficiently (from demand management), how customer value is fulfilled cost efficiently (from supply management), and how these processes and management directions can be aligned. An approach to gain a superior competitive advantage by balancing the cost efficiency, responsive effectiveness, differentiation and innovativeness process across functional, organizational and inter-‐organizational boundaries.
Studies Williams et al. (2002)
Selen and Soliman (2002) Hilletofth (2011)
Hilletofth and Ericsson (2007); Juttner et al. (2007); Walters and Rainbird (2004)
Table 3- Historical Researches on DSCM from Different Research Perspectives Study
(Gattorna, 2009)
Industry related Overarching demand chain network alignment
(Hilletofth, 2011, 2012; Furniture industry Hilletofth et al., 2009; demand and supply Hilletofth & Hilmola, 2010) chain management FMCG DSCM/SC collaboration Enterprise based demand supply (Esper et al., 2010) integration based on knowledge based theory Range of different (Jüttner et al., 2007) industries (Rainbird, 2004; Walters & Australia Fast food Rainbird, 2004) industry: McDonalds Downstream wholesale (Lau, 2012) and retail distribution (Canever, Van Trijp, & Beef industry from Beers, 2008) DSCM perspective (Van Goor, 2007)
(Holmström et al., 2008)
OEM Industry
Preliminary Macro business theoretical strategic study overview
Micro process-‐ driven
Functional breakage
Specific logistics perspective
√
√
√
Overarching business strategic embracing Human Resource, supply chain strategies
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
Delivery/ distribution
√
√
√
√
Segmenting service delivery and asset management based on industrial service operations
15. Technology, Innovation and Supply Chain Management Competitive Sessions Table 4- The enablers and Obstacles of Applying DSCM Enablers Supply chain strategic designing based on marketing/ demand research
References (Esper et al., 2010; Hilletofth, 2007; Jacobs, 2006; Jüttner et al., 2007; Walters & Rainbird, 2004)
Obstacles The revolutionary supply chain reconstruction from physical and mental perspective
References (Hilletofth, 2007, 2011; Jacobs, 2006)
The proper balance between demand creation and fulfillment, between revenue growth and cost reduction
(Ericsson, 2011; Esper et al., 2010; Hilletofth, 2011; Jacobs, 2006; Jüttner et al., 2007)
Challenge to create acceptance for new mindsets and new ways of behavior (many approaches are still based on old business paradigm with focus on intra company effectiveness and efficiency
(Ericsson, 2011; Jacobs, 2006; Van Goor, 2007)
Advanced market segmentation and intelligence
(Hilletofth et al., 2009; Juttner et al., 2007; Walters and Rainbird, 2004)
Highly control manpower along the shareholders
(Hilletofth, 2007, 2011; Jacobs, 2006)
Information sharing/ relationship management
(Charlebois, 2008; Frohlich & Westbrook, 2002; Williams, Maull, & Ellis, 2002) (Charlebois, 2008; Childerhouse et al., 2002; De Treville et al., 2004; Esper et al., 2010; Frohlich & Westbrook, 2002; Heikkilä, 2002)
Conflicts of interest along supply chain
Huge financial investment
(Ericsson, 2011; Jacobs, 2006; Van Goor, 2007) (Hilletofth, 2007, 2011; Jacobs, 2006; Van Goor, 2007)
Integrated IT support
(Al-‐Mudimigh, Zairi, & Ahmed, 2004; Selen & Soliman, 2002; Walters, 2008)
Commitment from senior leadership style fit (culture change/business strategy alignment/functional process and department fit)
(Esper et al., 2010; Hilletofth, 2011; Jüttner et al., 2007; Langabeer & Rose, 2001)
Trust and loyalty
15. Technology, Innovation and Supply Chain Management Competitive Sessions Table 5- The DCM and DSCM Studies in Fashion Apparel Industry and Chinese Fashion Industry Research areas Marketing oriented SCM/ Lean agile leagile coordination/ internal SCM perspective DCM perspective from NPD, CRM and marketing management Development of Chinese fashion apparel industry
Literature reviews (Bhamra, Heeley, & Tyler, 1998; Bruce & Daly, 2006; Bruce et al., 2004; Cao et al., 2008; Chandra & Kumar, 2000; Christopher et al., 2004; Fernie & Sparks, 2004; Jones, 2002; Lowson, 2002; Mason-‐Jones, Naylor, & Towill, 2000; Stratton & Warburton, 2003) (Hoover Jr et al., 2002; Jacobs, 2006; Stockert, 2005);
Main perspective It is proposed the effective buying behavior for fast fashion focuses on the management of portfolio of suppliers, relationship building as well as interfacing effective with internal activities To assess the actual state of DCM compared with its promises of a few years ago
(Chan, 2011; Dickson et al., 2004; Hui & Jun, 2010; International Trade Centre, 2011; Kwan, Yeung, & Au, 2003; Lam & Postle, 2006; Li & Fung, 2011; Zhenxiang & Lijie, 2011)
Most of studies still focus on studying internal supply chain integration and specifically looking at some operational issues or technical problems under SCM definition.
Table 6- Key demand supply chain research for Chinese Fashion Apparel and Textile Industry Literature
Title
Research focus
Research methods
Type
(Kwan et al., 2003)
A statistical investigation of the changing apparel retailing environment in China
Holistic industrial report— Examination of China’s demographic and economic indicators over the past 20 years, and the changing pattern of other macro-‐factors and micro-‐factors
Desktop Research
Business report
(Taylor, 2004)
China textile trade
Industrial trading report— Introducing the special issue on the textile trade in China. Outlining its growth which has reinforced its role as a preferred supplier to major markets, and its alignment with other members of the WTO.
×
Editorial
(Chan, 2011)
Fashion retailing in China: an examination of its development and issues
Holistic industrial report— Examining the macro development issues of fashion retailing in china
Desktop research and exploratory research techniques
Business report
(International Trade Centre, 2011)
The Chinese Market for clothing
Holistic industrial report—Focusing on giving a comprehensive business overview on local Chinese FT market. The topic delivers through many perspectives, such as macro economy, trading, marketing and logistics perspectives.
Business case study and desktop study
Business report
(Yi, 2012)
Fast fashion model questioning to be ‘Fast’ in China
Industrial news report— Analyzing the issues in the local FT companies for recent years.
×
Editorial
(Zhang et al., 2002)
Casual wear product attributes-‐-‐A Chinese consumers’ perspective
Marketing/consumer behavior perspective—the importance of product attributes of casual wear for Chinese consumers was investigated. A total of 15 attributes were identified. It is found geographic and demographic factors had great impact on these attributes.
Quantitative survey study
Research paper
(Dickson et al., 2004)
Chinese consumer market segments for foreign apparel products
Marketing/consumer behavior perspective-‐-‐ Identifying the product attributes salient to consumers’ apparel purchase intentions
Quantitative cluster, multiple regression and other statistical analysis.
Research paper
(Chuang, 2008)
A strategic study for quickening brand building of Chinese textiles and garment industry
Marketing/consumer behavior/branding—analyzing the favorable and unfavorable factors for brand development for local apparel industry and putting forward some main measures and strategies for brand development
Desktop study
Business report
(Wang, 2009)
The empirical study on the ladder like development trend of Textile industry
Marketing/consumer behavior perspective—Analyzing the regional development characteristics of China’s textile industry. , namely regional ladder-‐like development mode. Pointing out the big distinction between strong and weak region.
Quantitative clustering analysis methods
Research paper
(Li & Fung,
China’s apparel market
Marketing/branding perspective—statistic industrial
Business case study
Business
15. Technology, Innovation and Supply Chain Management Competitive Sessions 2011)
report for these five years. Introducing the latest development on local FT industry and bringing the future trend about this industry.
and desktop study
report
(Eng-‐Meng, 2013)
Clothing brand Metersbonwe takes cue from Zara’s fast fashion
Branding—news report on famous local brand Metersbonwe business model reconfiguration
×
Editorial
(Flaven, 2013)
In China, Hangzhou Brands Face Identity Crisis
Branding—In today’s large and highly competitive China market, developing a real brand identity is crucial to success.
×
Editorial
(Lam & Postle, 2006)
Textile and apparel supply chain management in Hong Kong
Internal supply chain perspective—the paper focuses on reviewing the concept of supply chain management and Fisher SC strategy. Analyzing how to use Fisher’ s SC strategy to balance tradeoff between efficiency and effectiveness for Hong Kong textile supply chain
Case study
Research Paper
(Candace et al., 2011)
Supply chain flexibility in an uncertain environment: exploratory findings from 5 case studies
Internal supply chain perspective-‐-‐ To illustrate and examine the different flexibility strategies adopted by supply chain participants as a result of different environmental uncertainties
An exploratory multi-‐case study involving 5 Chinese FT companies
Research paper
Figure 3 - Dimensions of Strategic Fit (Chorn, 1991)
15. Technology, Innovation and Supply Chain Management Competitive Sessions Figure 4- Proposed Framework for Applying DSCM in the Chinese Fashion Apparel Industry The Achievement of DSCM approach under alignment theory Enterprise Institutional environment (Subculture fitting) Organizational structure design and leadership style matching
Enablers Alignment Marketing Management (Identifying dominant buying behaviour)
Barriers
Alignment Coordination (Outside-in process)
Supply Chain Management (from product design to corresponding supply chain operation)
Enablers to achieve the DSCM alignment •
•
•
SCM factors: o Strategic supply chain planning o Integrated IT support Marketing factors: o Marketing segmentation o Marketing intelligence o CRM Context organizational management (COM) factors: o Trust and loyalty o Commitment from senior leadership style fit (Culture change/business strategy)
Barriers to achieve the DSCM • • • • •
Huge financial investment The revolutionary supply chain reconstruction Challenge to create acceptance for new mindsets and new ways of behavior Conflicts of interest along the supply chain Highly control manpower among shareholders …
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