Chapter 1 The Case for Business Integration

One of the companies that participated in the DSI/Forecasting Audit research was a company in the apparel industry. This company, a manufacturer and marketer of branded casual clothing, had very large retail customers that contributed a large percentage of overall revenue. Understandably, it was very important to the success of this company that these large retail customers were kept in stock. If these retailers’ orders could not be filled, then out-of-stock conditions would result, with not only lost sales as the consequence, but potential financial penalties for failure to satisfy these retailers’ stringent fill-rate expectations.

As is the case for many companies in this industry, considerable manufacturing ...

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