Chapter 1: Role of PD in the Apparel Supply Chain Flashcards
Product Development
The strategic, creative, technical, production and distribution planning of goods that have a perceived value for a well-defined user group and designed to reach the marketplace when that group is ready to buy.
Apparel Supply Chain
The network of fiber, textile and findings (trim, thread, labels) suppliers, apparel product developers, manufacturers, vendors and all the channels of apparel distribution that work together to bring apparel products to the ultimate user.
Auxiliary Businesses
Businesses that provide expertise to improve the efficiency of the core apparel chain.
Includes: software providers, trend services, patternmaking services, sourcing agents, consultants, advertising agencies, etc.
Core Competencies
The business functions that a company is best equipped to execute.
Sourcing
The process of procuring materials for production.
Collaborative Supply Chain
Interactive networks of independent manufacturing specialists that join forces operationally to integrate complementary resources to respond to a market opportunity through the creation of a particular product.
Supply Chain Management
An evolving management philosophy that integrates the business functions of one firm with the competencies and resources of supply chain partners into a competitive supply system, focused on solutions for synchronizing the flow of products, services and information.
Growth Industries
Industries that make products that have not yet saturated the marketplace. Growth products utilize emerging technology that commands a relatively high price, placing these products out of reach for some consumers.
Market Saturation
Increasing market share relative to new consumers.
Market Penetration
Increasing market share relative to total sales volume of all competing products.
Mature Industries
Industries that produce products that are characterized by relatively stable sales from year to year and by a high level of competition.
Differential Advantage
A competitive edge that comes from lower price, superior quality, speed to market, unique product features or some other desired quality.
Sneakerization
The process of transforming an inexpensive commodity product into a high-tech, cutting edge specialty product.
Vertical Integration
A strategy that seeks to consolidate a supply chain by acquiring a company or companies at another stage in the supply chain.
Horizontal Integration
A strategy that prioritizes the acquisition of companies that make similar products in order to expand market penetration and reduce competition.
Diversification
A growth strategy in which a firm expands its product mix to capitalize on brand recognition, increase sales and thus enhance efficiencies for greater profit.
Wholesale Brands
Brands created under a proprietary label and sold at wholesale for distribution to retailers that also carry other wholesale brands.
Private Brands
Products developed and merchandised for exclusive distribution by a particular retailer.
