Efficient Decision-Making Matters: Costing Contributes to Competitive Edge of Luxury Retail Business

November 09th, 2016 Costing Systems

This week SupplyChain Asia published our article on how the right costing system can help build your competitive edge.

By their very nature, decisions involving the allocation of significant resources often involve uncertainty and shifting dynamics. As such, these decisions are best approached using advanced analytics, such as probabilistic analysis and the modeling of system dynamics.

In the fashion business, the time to market is critical and rapid, thus making efficient decision-making essential to remain up to date with the most current product trends. As such, moving a design through development, manufacturing and eventually into stores must be accomplished both quickly and at the right cost point. However, costing new designs is a time-consuming, negotiation-based exchange, with much back and forth between designers and outsourced suppliers.