The footwear industry is being pushed to improve performance and lower total distribution costs per pair. But with distribution becoming increasingly more complex, that is not an easy thing to do. Other challenges facing industry leaders:
Labor shortages, rising raw material costs, currency valuation concerns and changes in foreign policy are putting pressure on the companies to find alternate sources of supply to lower the costs of landed goods.
Mergers & acquisitions continue to shake up the industry, with several larger companies buying up smaller but well-known brands and buying their way into multi-channel operations. Consolidation and expansion are driving new opportunities for cost and performance improvements.
SKU proliferation continues to put pressure on inventory levels across the supply chain, as companies chase the latest trends (lightweight / minimalist) and technology improvements. Visibility is critical to managing inventory throughout the supply chain and leveraging it across multiple channels.
e-Commerce/Direct-to-Consumer opportunities continue to drive the need for multi-channel fulfillment within a single DC. With online sales expected to grow at high-single-digit to mid-teen rates for footwear companies, companies are contending with both new customer expectations and fulfillment challenges.
Distribution is the key to unlocking competitive advantage in the face of increasing complexity. But that requires an integrated approach based on a solid business case. Fortna can help.
“Fortna helps footwear companies drive greater efficiency and innovation through the supply chain.”