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Intermediation in agile global fashion supply chains

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Abstract:

Previous studies (such as Fung et al., 2007) have revealed that in industries characterized by high degrees of agility, fragmentation and globalization, such as the fashion sector, trade intermediaries play a significant role in integrating geographically dispersed value-chain activities. The typical tasks of an intermediary include sourcing, supplier quality control, shipping management and distribution. However, their ability to reduce costs and compress time along these activities and enhance the level of agility that fashion retailers are ultimately able to exhibit has received little attention in the literature. As a result, this paper explores the role of intermediaries as sourcing agents in agile fashion supply networks in a global context. The methodology employed involves two primary, exploratory case studies of UK based high street fashion retailers. The paper provides empirical evidence to highlight the role of trade intermediaries in increasing supply chain performance along two dimensions: total supply chain lead time and total supply chain costs.

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