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1270 Burton Group B&W Fastflow to Fashion A ‘Fastflow’ solution is essential that the Group works very because fashion trends change New stock of popular items can, to supply goods to the Burton Group. Background closely with its suppliers - from frequently. In order to reduce this risk, therefore, be re-ordered quickly and Members of the Group’s buying teams One of the most crucial areas that choosing the material for the garments, the Burton Group built a new set of stocks of less popular items can be run and senior managers make hundreds of The Burton Group is one of the largest fashion retailers in the fashion retailers must get right is the to when they are delivered. The relationships with suppliers, based on down. By knowing exactly what stock supplier visits each year. movement of product through the Group’s success relies on its suppliers the Fastflow approach. has been sold and therefore what needs UK, operating nearly 1,500 outlets and 92 department stores in The partnership between the Burton supply chain from source to shop floor. meeting very high quality standards. A to be replaced, it has been possible to high streets and shopping centres throughout the country. Although the Burton Group did not Group and its suppliers is a mutually Large amounts of capital are tied up in great deal of work has been carried out satisfy customer demand more often. actively set out to reduce the number of beneficial process. The Group reaches its customers through six main high street stock and the longer it remains in the recently, setting guidelines for suppliers The net result is the stores have been suppliers, the emphasis placed on supply chain, the less efficient the and any that fail to achieve this close able to sell far more goods thus The Group benefits from: brands: Debenhams, the UK’s leading chain of family suppliers’ flexibility and responsiveness retailer becomes. The essence of working relationship cease to receive increasing the turnover and profitability faster response times department stores and the fashion ‘Multiples’ store chains: has led to a substantial rationalisation • Fastflow is the creation of a more orders from the Group. The Group of the retailing operation. greater reliability Dorothy Perkins, Burton Menswear, Top Shop/Top Man, Evans of the supply base so that those who are • efficient supply chain to improve the ensures that each of the activities and Principles. The Group also owns the Home Shopping most responsive win the majority of the • more flexibility flow of goods and enable the Group to involved in bringing goods to brands Racing Green, Hawkshead, Innovations and McCord. business. Building a • higher quality assurance become more responsive. It represents consumers adds as much value to the • improved profitability. The Group was founded in 1900 by Montague Burton, a a significant change from the days goods as possible. An important aspect of the new partnership with when clothing retailers bought in large Fastflow process has been the upgrading These benefits lead to higher sales and Lithuanian immigrant, who established the original ‘Burton’ Fastflow was set up to improve supply suppliers stocks of items at the start of a fashion lower mark-downs on goods that fail to shop in Chesterfield. From his initial investment of £100 and a chain performance by : of information and communication season, hoping that all the stock would systems as well as the overhaul of Between 1992 and 1996, the number of sell at the original selling price. handful of staff, the business has developed significantly - • reducing lead times (i.e. the time suppliers for Multiples was reduced by be sold during that period, with the distribution/handling systems. Faster Suppliers benefit from an improved employing over 43,000 people and generating annual sales of between the placing of an order half to just under 700. At Debenhams surplus for the end of season sales. product flow has reduced the need for information flow coupled with more over £2 billion. and the delivery of the goods) there was a reduction of 20%. In Fastflow involves having the right warehouse space. At the same time, senior management attention from the the Multiples, the top 20 suppliers This case study focuses on the Burton Group’s strategic project items ready for consumers and the • increasing the availability of goods improvement of the information flow Group. Successful suppliers get a long handle 75% of the goods and in to reconfigure its supply chain. The initiative was launched in flexibility to respond quickly to • improving the accuracy of the has meant that the Group has a far more term commitment from the Burton Debenhams the top 20 have 64%. The 1994 and is called Fastflow. The aim of Fastflow is: changes in consumer preferences. goods delivered to orders placed. accurate picture of what is selling well. Group and a higher stockturn - i.e. Ultimately, it is all about the supply aim has been to develop In order to achieve these goals, it was more of the Group’s business. “To maximise sales by making sure that the right products chain being market led rather than stronger relationships decided that the Group needed to: Suppliers also benefit from faster are available to the customers at the time they want to buy production led. One of the greatest risks with quality suppliers. payment of their invoices. • direct its purchasing towards them.” to retailers is stock which fails to sell at A standard Group full price - being able to react more suppliers who could respond quickly and effectively Supplier Handbook, Fastflow through the quickly to market demand removes a in both print and move from a ‘warehouse’ significant amount of that risk. • CD-ROM format, distribution centres - concept to one of replaced around 15 ‘distribution centres.’ right place right time former handbooks The supply chain Distribution centres, and listed best The new distribution centres enable the whose objective is to move strategy practices in order to fast flow of goods between the factories wanted garments and other and the stores. The supply chain comprises the links ensure the highest goods to the retail outlets, involved in bringing a finished item to quality standards. would replace warehouses the end consumer and the methods of The suppliers agreed Factories where goods were stored ensuring that each store has sufficient to be bound by the until they were needed in stock to offer items in every size and Group’s Supplier shops. The emphasis colour. Gaps in stock availability Handbook which therefore was on creating a lead to lost sales. As a retailer, the sets out the smooth flowing supply chain Distribution Burton Group is not responsible for working instead of one based around a Centre manufacturing clothing. Instead, it conditions, number of storage points. SYSTEMS ‘sources’ them from outside suppliers practices and & HANDLING INFORMATION who may have the garments made up in Retailers, like the Burton Group, standards which DISTRIBUTION the UK or overseas, according to the are exposed to some considerable suppliers must Stores needs of the supply chain. However, it risk when dealing with fashion follow if they wish (ISCM) system. ISCM is the back-of- Reacting to colour house supply chain IT system used by the Burton Group. Introducing the Fastflow’s success is also well TASKS & ACTIVITIES system involved the largest staff illustrated by a recent innovation Produce a flow chart tracking a training programme ever undertaken by involving Evans stores which now the Burton Group and this has had a means they can react to colour trends 1garment through the logistics major impact on all job roles within the during the season. The chain has cut the network, from factory to store. organisation. number of T-shirt sources of supply What steps has the Burton Group from four to one. The remaining The main benefit of the new system is taken to speed up the movement of supplier balances product finishing 2 ‘on line’ stock visibility through all between the Far East and the UK to its clothing products through the stages of the supply chain bringing gain the maximum flexibility. Products supply chain? What is the ultimate aim greater supply chain control. ISCM has from the Far East will be cheaper, of the Fastflow project? provided a common system with mainly because of lower labour costs, Development of the Distribution standardised operating procedures Survey 25 people and ask them to but will take longer to transport to the Centres (DCs) has been carried out to across all retail brands. ISCM provides UK. Locally-sourced products will be 3place the following in order of improve flow of stock, accuracy and common communication to all Multiples available sooner, allowing the retailer to priority according to their personal service levels. The Group’s ‘put to light external contacts (such as suppliers react to fashion trends at a later stage in expectations when shopping: system’ has significantly improved and carriers). The benefits of the IT the selling season, but will be more accuracy. This system indicates to development programme continue to i. the garment’s fashion appeal packers the exact number of items which expensive. feed their way across the organisation - ii. the quality of manufacture should be placed in each crate to benefits will increase over a number of Evans found a combination of the two replenish stock levels in each store. For years thus enhancing the process of sources provided the optimum supply. iii. availability of the correct size example, eight red lights over a crate Fastflow. Product for early in the season was iv. the garment’s price. with a certain product code for the dyed at source and then sent to the UK.
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