30 August 2017
Move value from stock to bottom line
Get a perfect match between the customers’ demand and your supply by means of digital tools.
Having the right knowledge, you can optimise your value chain to avoid the two largest challenges for most companies: goods in stock which the customers do not demand or demand from customers for goods which are not in stock. And this will often be the case with forecast-based production of “one-size-fits-all” products. But it can be solved. The digitalisation has made it possible to have a real-time image of the customers’ behaviour and this knowledge can help you to produce exactly what the customers want – when they want it.
Have it your way
Indochino
One of the companies which has cracked the code for customisation of the value chain according to the customers’ needs is the American retailer within men’s fashion Indochino. They deliver a tailored suit, designed exactly according to the customer’s wishes right down to the smallest button, in less than four weeks. This means, that Indochino is not left with out-of-style suits on its hands or have problems delivering the latest styles. They can precisely match the customers' needs because their value chain has been customised to manufacture-on-demand. This means that the production of a certain suit is not started until an actual order is placed. This is an advantage to the customers because Indochino can offer a unique, customised product by involving the entire value chain, and to Indochino which can thus fully match supply and demand.
One size does not fit all
Shoes of Prey
Another company which has been able to customise production and value chain perfectly to the customers is the Australian Shoes of Prey that provides women worldwide with the opportunity to design their own shoes online. With digital design tools, the customers can create the perfect shoe based on choice of model, material, form, colour and of course size. Shoes of Prey custom manufactures the shoe and dispatches it directly to the customer within two weeks.
The reason why Shoes of Prey is able to custom manufacture the products and even so fast is that the company has taken control of the entire value chain, optimised each link and used the technological opportunities which digitalisation has created. Based on the different basis parts such as heel height, models and colours, Shoes of Prey can offer each individual customer to combine the parts to make the perfect shoe for her at an affordable price and fast delivery due to an efficient and flexible production chain.
Manufacture-on-demand in Danish
Also Danish companies have come forward as players in the field when it comes to manufacture-on-demand and optimal customisation of the value chain. An example is Son of a Tailor that has been on the market since 2014 with custom fitted T-shirts for consumers worldwide. The vision for an open and transparent value chain with involvement from purchasing of cotton to the manufacture of the finished T-shirt has made them able to improve each and every detail in the process and customise each T-shirt exactly to the individual customer.
Son of a Tailor’s specially developed size algorithm where the customer only answers four simple questions also ensures that the customer gets the perfect size which results in an exceptionally low rate of return – and a satisfied customer.
In addition to a precise customised size, the customer can also design his/her own T-shirt with the desired fit, neckline, sleeves, pockets and colour. In other words, a unique personalised product which is easy for the customer to order and therefore also a hit among today’s consumers.
The challenge in customisation has previously been that it was very expensive for the company as well as for the customers but owing to digitalisation, mass customisation – at an affordable price for the consumers to buy and for the companies to manufacture – has now become possible which Indochino, Shoes of Prey, and Son of a Tailor are good examples of.
Are you interested in hearing more about how we can help you be at the forefront of the latest digital trends and tendencies? We would like to invite you for a cup of coffee or we can visit you for a non-binding talk.
Contact Casper Bo Jørgensen, Customer Relations Manager, at: +45 23 30 79 56 or write to cbj@hesehus.dk
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