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- Complexity of Prepacks in the Apparel & Footwear Industry
lunes, 6 de abril de 2015
A prepack is package assembled by a manufacturer, distributor, or retailer containing a specific number of items or specific assortment of sizes, colors, etc., of a product. The prepack processing (pricing, inventory management and delivery processing) is carried out at the header level. Requirements must be created in the system only for the header items.
Pre packing refers to packing of individual Stock Keeping Units (SKUs) of merchandise into bigger cases for easier handling in the supply chain. The pre packs consist of varying quantities of different SKUs clubbed together to form the lowest level of packaging hierarchy and are designed to flow through from the vendor to the retail stores. Handling of these larger pre packs rather than individual SKUs proves to be cheaper and faster at all touch points in the vendor to retail store supply chain.
Although pre packing has proven benefits in terms of easier and cheaper handling, the development of pre pack configurations determining different pre pack compositions is a major challenge. Clubbing together of individual SKUs into larger cases reduces flexibility of the supply chain. If pre packs need to be opened at any point before they reach stores, additional cost and time is incurred. Inefficient decision making regarding pre pack configuration may result in extensive opening up of pre packs and reconfiguration at distribution centers. This is usually called “Prepack optimization” and it is a more complex process in the supply chain.
The AFS shoe 5814 is assigned to an AFS prepack as a single component. Different grid values (sizes 8 to13) and component quantities (AFS shoe 5814) are assigned to the grid values of the prepack (small, medium and large). All in all the prepack contains a specified quantity relation (for example, 12, 18 or 24 pairs), distributed among the different sizes. With the aid of the AFS prepacks you can map such quantity combinations.
This is a simple example of a T-Shirt. One prepack has been created which contains 2 colors. Each one with its own size run. Review the process in this recorded session (View Session) à link to http://goo.gl/glylNq