Alternative Models of Demand-driven Supply Chains: Size-specific Solutions in Italian Fashion Companies

Abstract

This article aims at identifying the main solutions that Italian fashion companies adopt in order to improve the agility of their supply chains. In recent years, fashion companies have experienced an increased level of time-based competition, which has determined the growth of the fast fashion segment and of new players that are able to bring new products to the market quickly. In Italy, this evolution has determined the rise of new brands, launched by small-to-medium-sized enterprises (SMEs), which enjoy strong market sensitivity and a highly responsive production system. Recently also traditional, large Italian fashion companies have started targeting the fast fashion segment. The supply chains of both types of companies have to be agile, but we assume that their market sensitivity is achieved through different levers. In this article, we analyze four cases, two for each type (SME Italian fashion companies and large ones), to understand whether relevant differences exist between the way in which such companies achieve their “market sensitivity.” This analysis demonstrates that while large companies invest in the adoption of up-to-date technologies and best practices, SMEs leverage their knowledge of the industry and the intuition of their employees to interpret market trends and to plan their product offerings accordingly.