×
194
Fashion Jobs
3FATE TECHNOLOGIES PVT LTD
Production Manager-Garment Manufacturing- Saree, Salwar Suit & Lehenga
Permanent · Kanpur
PUMA
Manager- Ecommerce Operations
Permanent · Bengaluru
PUMA
Warehouse Manager-D2C
Permanent · Bengaluru
PUMA
Digital Marketing Manager
Permanent · Bengaluru
EXPLODE SERVICES
Quality Assurance Manager Home Furnishing Garments For Noida
Permanent · Noida
EXPLODE SERVICES
Manager ie Garment Exports
Permanent · Noida
THE BANYAN HR CONSULTS
Merchandising Manager For a Seamless Garments Textile co at Coimbatore
Permanent · Coimbatore
OPERA CLOTHING PRIVATE LIMITED
Production Manager For Garment Manufacturing Factory
Permanent · Vapi
GOKALDAS EXPORTS LTD
sr. Manager - Technical - Garments Industry Background
Permanent · Bengaluru
NIKE
Lead Technical Product Manager, ed&a – Apla
Permanent · Bengaluru
NIKE
Senior Security Incident Responder – Cis
Permanent · Bengaluru
FAABIIANA
Executive For Online Product & Order Management
Permanent · NEW DELHI
FAABIIANA
Customer Sales Executive (Female)
Permanent · NEW DELHI
NIKE
Senior Technical Product Manager, Inventory & Order – Apla
Permanent · Bengaluru
NIKE
Senior Technical Product Manager, Finance – Apla
Permanent · Bengaluru
NIKE
Senior Technical Product Manager, Core Erp – Apla
Permanent · Bengaluru
OMREELS BIOSCOPE PVT LTD
Senior Executive Ecommerce
Permanent · MUMBAI
NIKE
Senior Technical Program Manager, Marketing Tech – Dtpo
Permanent · Bengaluru
NIKE
Service Delivery Manager, Operations Center – Tech Ops
Permanent · Bengaluru
NIKE
Director, Security Solutions & Delivery – Cis
Permanent · Bengaluru
NIKE
HR Manager - Nike India Technology Centre
Permanent · Bengaluru
NIKE
Financial Controller - India
Permanent · Bengaluru
Translated by
Nicola Mira
Published
Oct 28, 2021
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Supreme’s drop model disrupted by supply chain, shipping problems

Translated by
Nicola Mira
Published
Oct 28, 2021

Sportswear giants have not been the only groups whose production has been disrupted by the widespread factory closures in Vietnam. The closures, required to comply with health protection measures following Covid-19 outbreaks, are also affecting other fashion players, like streetwear labels: At the publication of VF Corp.’s quarterly results last week, the management for the US group, owner among others of Vans, The North Face, Dickies and Timberland, reported on the business impact of production and transportation difficulties in Asia.


A model from the Fall/Winter 2021 collection - Supreme


“The renewed emergence of Covid-19 bottlenecks in key supplier countries such as Vietnam has resulted in further significant production delays, while our logistics organisation continues to face unprecedented challenges,” said VF Corp.’s CEO Steven Rendle during a conference call with financial analysts.

“Due to the significance and strategic diversification of VF's supply sources, our overall output capacity has remained better positioned than that of most competitors, with approximately 85% of our capacity remaining operational throughout the quarter. Pressures have generally been concentrated in the southern region of Vietnam, which accounts for approximately 10% of VF Corp.’s entire supply chain,” added Rendle.

He noted that Vietnam remains the group's leading sourcing market and generates a quarter of its production output. Rendle also underlined that, although the group has a number of different entry and exit points available in Asian ports, pressure on logistics has also been felt.

“In general, supply chain delays have been ubiquitous, and in some cases, they have extended up to 8 to 10 weeks. Despite these delays, cancellation rates have remained below previous levels, reflecting high demand and limited inventory across distribution channels,” he added.

However, not all of VF Corp.’s brands seem to have enjoyed the same fortunes. While they have all been impacted, and suffered delays in their schedules, Supreme was especially hard hit.

"Virtually all of our brands are experiencing delayed collections, styles and, in some cases, insufficient size assortments, limiting their ability to fully meet strong demand. For example, the Supreme brand has experienced around 30% less inventory around drops,” said Rendle.

“Despite strong sell-through trends, we are losing volume from limited supply. Supreme has suffered disproportionately from supply chain disruptions. It is highly exposed in Vietnam and, due to the nature of its product flows, it doesn’t carry forward inventory.” As a result, if a delivery doesn't arrive, there are limited options for delaying putting it on the shelves. 

“The good news is that sales trends continue to be strong and we have seen a decrease in inventory. We have seen a strong and continuous interest and a clear opportunity for the brand to continue its growth. But I believe that these supply chain disruptions show us the benefits of integrating Supreme into our model, truly diversifying its footprint and focusing on areas where we can help [Supreme] maintain a better [product] flow,” said Rendle.

VF Corp.'s senior management is optimistic about Supreme, while recognising that the general business climate has curtailed opportunities for new store openings, particularly in Europe. However, Supreme is expected to generate a revenue of approximately $600 million (€517 million) in the 2021-22 fiscal year.
 

Copyright © 2022 FashionNetwork.com All rights reserved.