Quick response
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This document defines and discusses quick response (QR). QR aims to provide customers with a diverse range of products and services in exact quantities and at the right time, place, and price based on real-time demand. It was developed in the late 1980s based on the Japanese concept of time-based competition. QR focuses on reducing lead times throughout the supply chain to improve quality, reduce costs, and eliminate waste. It requires responsiveness, reliability, resilience, and relationships between supply chain members. When implemented successfully, QR benefits suppliers and retailers through reduced inventory, improved cash flow, higher sales and profits, and enhanced customer satisfaction.
![Quick Response
Kevin Sai Thomas
Priyanshu Uniyal
Swati Vohra
[BFT-V]](https://image.slidesharecdn.com/quickresponse-141211120203-conversion-gate01/85/Quick-response-1-320.jpg)
Quick response
- 1. Quick Response Kevin Sai Thomas Priyanshu Uniyal Swati Vohra [BFT-V]
- 2. Define Quick Response • QR is a state of responsiveness and flexibility in which an organization seeks to provide a highly diverse range of products and services to a customer/consumer in the exact quantity, variety and quality, and at the right time, place and price as dictated by real-time customer/consumer demand. (Lowson et al., 1999)
- 3. • The concept of QR is based on a Japanese concept – Time Based Competition (TBC) • It was developed by Rajat Suri in Late 1980s.
- 4. Why Quick Response? • Emphasis on the reduction of internal and external lead times • Shorter lead times ▫ Improve quality ▫ Reduce cost ▫ Eliminate non value added waste within organisation • QR eliminates dysfunctional variability like, rework and changing due dates
- 5. Principles of QR • Lead time reduction • Focus on manufacturing enterprise • Focus on implementation and sustainability • New material planning and control approach • Manufacturing Critical path time
- 6. Causes for QR • Increased Competition in market • Outsourcing of supply chain processes, like production • Changes in consumer lifestyle • Increased demands
- 7. 4 Rs Of Quick Response • Responsiveness : Responsive operation systems of the supply chain Information management Partnership between supply chain members Manufacturing flexibility Effective inventory management Strong logistic system
- 8. • Reliability : ▫ Conformance to consumer expectations ▫ Delivering the promised product ▫ TQM • Resilience : ▫ Managing the weaknesses of the supply chain ▫ Recovering quickly from unexpected disturbances • Relationship : ▫ Developing positive supply chain relations through collaboration and information sharing ▫ Performance depends on alliances and relationships ▫ Helps to deal with changing market conditions
- 9. Benefits of QR implementation • Supplier’s benefits : ▫ Reduction of buying mistakes ▫ Minimization of stock holding ▫ Quick tracking of merchandise ▫ Higher stock turn ▫ Improvement of cash flow ▫ Betterment of customer service ▫ Very high level of profit ▫ Enlarged competitive advantages
- 10. • Retailer’s Benefits : ▫ Improvement of planning systems ▫ Quick access to sales information ▫ Easy tracking of products ▫ Security of getting more orders ▫ Improvement of manufacturing systems ▫ High volume of production ▫ Higher sales ▫ Good profit margin ▫ Enhanced customer satisfaction & loyalty
- 11. QR in apparel supply chain • In recent years, consumer demands have diversified and the duration of acceptance of the products has decreased, and thus, the lifetime of the product has considerably reduced. • The concept of QR was introduced in textile and retail sectors to ▫ reduce inventories ▫ shorten cycle times ▫ respond rapidly to changing consumer demands.
- 12. • The primary objective of QR is risk reduction by optimising the lead time • Factors responsible for the need of QR in fashion : ▫ Changes in the lifestyle ▫ Expansion of the intercultural relationships ▫ Development of technologies ▫ Changes in economic conditions • 3 Cs of Quick Response : ▫ Control ▫ Communication ▫ Collaboration
- 13. Necessity of QR in Apparel industry • Impossible to accurately forecast volumes and product mix ▫ Results in hike costs of stock out and carrying costs • The 6 month or yearly forecast may not be able to judge (or meet) consumer expectations • Individual efficiencies of system do not ensure over all efficiency of the supply chain
- 14. The main trends in QR strategies implementation in the fashion industry • Design of specific demand management techniques in relation with fashion trends in general, and colours • Interactive designing customer-retailer offering garments structure using CAD • The manufacturer/ retailer systems will have to use reliable POS data so that the industry can be attached into the very complicated up-stream systems to support the demand-activated production
- 15. References • WHAT IS VICS-Voluntary Inter-industry Commerce Solutions (http://www.vics.org) • Quick Response strategies in Fashion Industry; Mirela Octavia SÎRBU Andreea Simona SASEANU; The Bucharest University of Economic Studies