Fashion specific challenges occurring within the supply chain and how these can be approached using Fast Fashion

Table of Contents

List of Abbreviations

1. Introduction
1.1. Problems and Aims
1.2. Structure

2. Conceptual Fundamentals
2.1. Definition Supply Chain
2.2. Definition Supply Chain Challenges
2.3. Definition Fast Fashion

3. Fashion Specific Challenges
3.1. Perishability
3.2. Demand Uncertainty
3.3. Lead Times
3.4. Conclusion

4. Fast Fashion
4.1. Quick Response
Inventory Control
Product Planning
Electronical Data Interchange (EDI)
Barcoding and Radio-Frequency Identification (RFID)
4.2. Sourcing: Responsiveness and Efficiency
4.3. Supply Chains
Agile and Lean Supply Chains
Leagile Supply Chains
4.4. Conclusion

5. Zara - Fast Fashion in Practice
5.1. The Company
5.2. Fast Fashion in Practice
5.2.1. Business Model: Integrated, Responsive Supply Chain
Process Overview
Design and Production as a Business Process
Distribution and Logistics Processes
Trading as a Business Process
5.2.2. Key Processes of the Supply Chain Management
Maximum Speed
Controlled and Enhanced Design
Vertical Integration
Uninhibited Flow of Information
Modern IT Systems
Optimized Flow of Goods
Investments in Processes rather than in Advertising and Price Reductions
5.2.3. Conclusion

6. Conclusion
7. List of References
1. Literature
2. Internet Sources
3. Other Sources

List of Abbreviations

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1. Introduction

1.1. Problems and Aims

“The faster people throw away their clothing, the sooner they buy something new – that’s what keeps the wheel turning.” That was Karl Lagerfeld’s response in a recent interview when asked about the effect of Fast Fashion.^[1]

But when discussing sustainability, the economic aspect cannot be ignored: in the short term, Fast Fashion invigorates the economy. Especially, the increasing sales numbers of H&M and Inditex^[2] show that Fast Fashion seems to be a promising business model.

Fashion is changing faster and faster. Particularly in the last seasons the ernormous rise in pace has been incomparable. Fashion bloggers post catwalk trends and street styles in real time and brands sell via social media. Referring to the fashion supply chain, the average fashion lead time, which starts at the design stage and ends with the finished product in stores, can seem like an eternity. It is near to impossible for a buyer to deter-mine which trend will be a bestseller in the next season. Nonetheless, while all competitors have to sell winter down jackets in July, Zara features new items twice per week in their stores. In the face of inconsistent weather, the pressure to manage footage in stores and changing consumer requirements, there are many challenges to deal with in the fashion supply chain.^[3]

Generally, the fashion industrie’s main supply chain challenges are the perishabilty of fashion goods, demand uncertainty and tight lead times. Due to that, the development and implementation of advanced supply chain strategies are becoming unavoidable. In the recent past a great variety of strategies emerged that may be an opportunity for all contigencies to proceed with these challenges and to gain a competitive advantage over their competitors. All strategies share the goal of increasing agility, flexibility and responsiveness. The most widespread supply chain strategy is Fast Fashion.^[4]

The purpose of this chapter is to identify how fashion specific challenges, that occur within the supply chain, can be approached using Fast Fashion. Thereby, it will be explained what substrategies Fast Fashion consists of and how these can solve the problems of the fashion industry. Hereby, the focus is on strategic aspects of Supply Chain Management.

1.2. Structure

First of all the focus of this academic paper lies on the conceptual fundamentals. This chapter will define and discuss the terms Supply Chain, Supply Chain Challenges and Fast Fashion. Secondly, the focus lies on the specific challenges of the fashion industry that occure within the supply chain: Perishability, Demand Volatilty and Lead Times. Then Fast Fashion and its sub topics - Quick Response, Sourcing, Supply Chains - will be explained in detail.

Following this, a case study of the Spanish fashion retailer Zara is presented to illustrate how Fast Fashion works in practice. This chapter is aimed at recognising how Fast Fashion approaches the fashion specific supply challenges de facto. At the beginning of this chapter, the company Zara will be introduced. Afterwards, a closer look is taken at how Fast Fashion works in practice based on the example of Zara.

Finally, the knowledge gained from the academic paper will be summarised in a con-clusion.

2. Conceptual Fundamentals

2.1. Definition Supply Chain

The term Supply Chain is fundamentally defined as a value-added process. This value-added process involves the transformation of natural resources, raw materials and components into a finished product that is delivered to the end customer. Due to this, it includes the production and service processes, distribution processes and marketing processes as well as transport and storage processes as sub-processes. Therefore, this concept follows the fundamental idea of the Value Chain of Porter.^[5]

However, Porter’s view is extended insofar, as the supply chain does not only include the company internal value-added processes, in which the scope of a supply chain is limited to one company, but also cross-company value-added processes. Moreover, the term supply chain is generally only used, if the value-added processes and steps are closely interlinked.^[6] Furthermore, there are other normative concepts that also involve (process-) optimizations throughout the complete supply chain - for example in the form of inventory reductions throughout the entire process chain.^[7]

According to this, a supply chain can generally be described as a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. In a supply chain the corporate performance is governed by both value-added and value-destroying factors such as design and image.^[8]

Besides, the term supply chain is closely related to the concept of Value Chains. It is partly used in a similar context or even synonymous.^[9]

Furthermore, supply chains are managed through Supply Chain Management. Supply chain management encompasses “the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.”^[10] But due to limited scope the topic supply chain management will not be a central theme in this academic paper.

2.2. Definition Supply Chain Challenges

Over the past decades, the supply chain has become complex and vulnerable. Due to this, supply chain leaders have seen increasing challenges. They must address these challenges to create and remain efficient and effective supply chain methods. To get a quick overview of the main challenges occurring within the supply chain the most recent challenges are described in the following section.

One of these challenges is the globalization of manufacturing operation. Because of this it is important to have a global procurement network that can support and react to the supply chain’s needs. Selecting a strategic supplier that provides manufacturing locations with consistent global quality and a reliable local service is a challenge.^[11]

Moreover, shorter lead times, less inventory and better throughput also present current challenges. With shorter product life cycles and changing market demands, companies are forced to embark on a lean journey. It is important to note that the supply strategies in a lean environment support the operation’s strategy. The challenge is always to find not just a lean concept, but a working lean solution.

Furthermore, a supplier based consolidation is another challenge that is often faced in a supply chain. Consolidation of the supply base can bring many advantages. It eliminates supply base variances and overheads. The challenge is to find a supplier with solutions and experience in supplier-based consolidation processes.

And finally, access to the latest technology in various fields by having the right experts has proven to be a great support in product development. It is a challenge to earn the latest know-how in technology.^[12]

Especially, fashion supply chains’ main challenges are the Pershiabilty of fashion products, the Demand Uncertainty that is difficult to assess and the long Lead Times. These challenges will be discussed in detail in the following chapter of this academic paper.

2.3. Definition Fast Fashion

Fast Fashion is a contemporary term used by fashion retailers to explain that designs are quickly captured from the catwalk in order to create current fashion trends – in technical language this is called the fast follower or copy-cat behavior.^[13] So, Fast Fashion refers to the rapid copying of catwalk designs and the most recent fashion trends presented at fashion shows in both the spring and the autumn of every year for clothing collections.^[14]

Moreover, Fast Fashion emphasizes on optimizing certain aspects of the supply chain in order to design and manufacture quickly.^[15]

Spanish fashion retailer Zara has been at the forefront of this fashion retail revolution and their brand has almost become synonymous with the term.^[16]

Nowadays, the philosophy of quick manufacturing at an affordable price is used in large retailers such as H&M, Asos, Forever21 and Topshop. They offer the latest models of famous designers and celebrities at significant lower prices according to the concept of Quick-Response within a few weeks. By now, six to eight new collections within one year are quite common. Fast Fashion is connected to the higher number of (sub-) collections and delivery dates. This implies that the preliminary lead time for the production no longer needs numerous months, but rather just a few weeks. Therefore, entrepreneurs are forced to provide the materials in advance and to produce closer to the market or take expensive transport routes. This also means that bestsellers from a range can be reproduced in a short time and that simple styles are sometimes offered in new colours.

According to the Greenpeace study "Toxic yarns. The large textile-testing by Green-peace”, Zara is the leading Fast Fashion brand. The retailer can put together a line of clothing within seven to 30 days and deliver bestsellers in addition within only five days to the stores.

By now, even luxury brands like Chanel and Louis Vuitton join the Fast Fashion trend. They try to be perceived as relevant and current with additional collections – another result of the Fast Fashion industry.^[17]

Fast Fashion is also in contrast to the current Slow Fashion movement that supports sustainable, conscious and decelerated fashion, as well as a fair production.^[18] The Slow Fashion movement has arisen in opposition to Fast Fashion, blaming it for pollution (both in the production of clothes and in the decay of synthetic fabrics), poor workmanship, and focusing on very brief trends rather than classic style. Fast Fashion has also come under criticism because suppliers are forced to comply with increasingly tight delivery dates due to the production pressure and thereby wage cuts, irresponsible practices and poor working conditions in developing countries are more apparent.^[19]

3. Fashion Specific Challenges

The textile retail faces many supply chain challenges. This section focuses on the main fashion specific challenges: Perishability, Demand Uncertainty and Lead Times.

3.1. Perishability

The term “Fashion” is defined “as a broad term that typically encompasses any market or product where there is an element of style which is likely to be shortlived.” (Christoper et. al., 2004, p. 367) The advantage of a fashion product over an ordinary commodity lies within its novelty and exclusiveness. This advantage only exists as long as the product corresponds to the latest trend and has certain uniqueness.^[20] This means that the demand is not already saturated by price reductions. So, if the specific advantage is lost, the item can only be sold for a substantially lower price.^[21] Therefore perishable products, like fashion products, are less likely to sell over time due to seasonal changes in fabric-ation, style and color.^[22]

Fashion also moves in cycles, which is decisive for the success of a product.^[23] In general, there are two types of products with limited lifecycles differentiated: “Fashion” and “Seasonal”. Fashion products have lifecycles of approximately 10 weeks, while seasonal products have lifecycles of approximately 20 weeks.^[24]

Moreover, the traditional calendar year is divided into two distinctive periods: Spring/ Summer and Autumn/Winter.^[25] The seasonal key fashion trends are presented at fashion shows, trade fairs and fabric events more than half a year before the particular season begins.^[26] The design departments of apparel companies transfer these trends into mass-market products. However, at the present time, the calendar year is diverged in twelve sub-seasons – instead in the two traditional seasons. Along with the transformation of the common seasons Spring/Summer and Autumn/Winter, the importance of high-end fashion shows declines. Thereby, more and more inter-seasonal shows are launched. These are often more commercial than the traditional ones, because they normally show fashion trends, which are closer to the mass-market.^[27]

Further, social media and its prevalence play an important role. Everybody can start their own fashion blog and reach an unlimited audience. The latest styles are exchanged all over the world in real time via Instagram and co. and reach the remotest places without any delay.^[28]

Music, film, television , and other media also have great influence on fashion trends. Today’s fashion trends are not defined twice a year, but can be created any time by any one. As soon as the corresponding products are on the market, the older ones become obsolete and lose their value-advantage.^[29]

The erosion of pre-defined product life cycles makes it much more difficult to estimate the point in time in which a certain product will perish. Thus in consumption, perishability is one of the main challenges a company has to face when dealing with fashion supply chains.

3.2. Demand Uncertainty

As the term fashion is defined as “as a broad term that typically encompasses any market or product where there is an element of style which is likely to be shortlived.” (Christoper et. al., 2004, p. 367), it is implied that a fashion product is likely to be volatile, rapidly changing and hard to predict.^[30] That means that sales data and empirical values about the demand of a fashion product do not exist. Thus, solid demand and sales forecasts are virtually impossible. Moreover, as customer’s demands change faster these days, demand forcasting gets even harder.^[31]

The apparel industry has to deal with demand volatility coupled with enormously low predictability of demand.^[32] Demand volatility generally means that “the ratio between stock-holding and return becomes more critical, needing a much faster response time to ensure that lower overall stock level are kept in stock at all times.”^[33]

Demand uncertainty is constituted as one of the most significant cost factors for fashion retailers. For clarification: Underrated demand leads to lost sales and unsatisfied customers. Especially because a high level of impulse buying, lost sales are very problematic.^[34] Further, overrated demand causes excess stock . As fashion products are perishable, they lose value if they do not correspond to the latest trends and do not have uniqueness. Hence, the excess stock can only be sold for a substantially lower price.

Generally it can be said that massive costs occur because of demand misjudgement. In literature it is estimated that a huge percentage of all fashion products have to be sold at a marked down price. According to Sull and Turconi the industry average markdown ratio is about 50 per cent.^[35]

Moreover, fashion sales are influenced by a variety of extrinsic factors that are unpredictable. Especially music, film, celebrities and other media have great influence on demand.^[36] Hence, it is also difficult to forecast the developement of demand. Furthermore, the perishability of fashion products^[37] and new trends occuring at all times increase demand uncertainity.^[38] In consumption, it is necessary to adjust fashion supply chains in order to to deal with the challenge of demand uncertainty.

3.3. Lead Times

Shorter product lifecycles and rapidly changing consumer demands have led to a renewed focus on lead times.^[39] Especially, because flexibility and responsiveness are crucial in fashion markets with unpredictable demand und perishable products, lead times play an important role.^[40] Thereby, fashion retailers are faced with lead time competitions. These are characterised by three dimensions that must be managed effectively:

- „Time to market“: Speed at which a new product can be brought to market
- „Time to serve“: Speed at which a costumer’s order can be served
- „Time to react“: Speed at which the product range can be adjusted to a volatile demand.^[41]

In general the term “lead time“ is defined as the „gap between when an order is placed and when it is received“.

As an example, there is generally the risk that a retailer misinterpretes a random increase in demand as a growing trend. If the retailer faces a lead time of two months, it will incorporate into its order the anticipated growth over two months when placing the order. In contrast, if the retailer faces a lead time of two weeks, it will incorporate the anticipated growth over two weeks (which will be much less). The same applies when a decrease in demand is interpreted as a declining trend.^[42] This shows, if lead times are too long, such that a fashion retailer offers products to the market when its attractiveness is weaking, this may result in discounted stock and therefore less profit.^[43]

In addtition, if a company produces in East Asia, it has to face lead times of around 20 to 29 weeks. In consideration of lifecycles for fashion products of 10 weeks and for seasonal products of 20 weeks, retailers have to plan their range of items well in advance for the next seasons. And as fashion products are perishable, competitive retailers with shorter lead times have the advantage to sell the latest trends much earlier. Thereby they can sell the products at a very profitable price as they have exclusivity.^[44]

Especially in the past years, there was a massive shift of textile and clothing manu-facturing towards East Asian low-wage countries. Labour costs are much lower there - compared to low-wage markets as Turkey, Mexico, and Marocco. China became the biggest exporter in the clothing industry. But since the production is placed in East Asia, additional costs for logistics and inventory, caused by greater geographical distance, has increased. Further, the production in East Asia is marked by higher lead times incurred by a greater distance, lower productivity and inflexibility.^[45]

In general, it points out, that the factor “speed” is crucial in the clothing industry. Its importance grows with the high perishability and increased demand uncertainty of fashion products.

3.4. Conclusion

The fashion supply chain faces three main challenges: Perishabilty, Demand Uncertianty, and Lead Times.

Apparel retailers have to decide well in advance which products are expected to correspond to future trends and thus should be offered for future seasons.^[46] But fashion products are highly perishable, as trends often only last a few weeks.^[47] Only if a product is exclusively sold, the price maximum can be gained.^[48] But a solid method to forecast the constumer’s actual demand does not exist.^[49] As a consequence of misjudged consumer demand, stock excess that is highly perishable increases. In contrast, stock shortages cause lost sales and dissatisfy costumers. Additionally, if lead times are too long, a fashion retailer will have its products available only when its attractiveness has already weakened. As a result, stock is discounted and, thus, less profit is generated.^[50] All in all, the fashion specific challenges compound each other.

To face the specific challenges and to adjust the fashion supply chain, an advanced approach is needed. Thereby, the next section focuses on Fast Fashion.

4. Fast Fashion

Based on the chapter about the conceptual fundamentals previously, Cachon and Swinney define Fast Fashion as a “system (that) combines quick response production capabilities with enhanced product design capabilities to both design ‘hot’ products that capture the latest consumer trends and exploit minimal production lead times to match supply with uncertain demand.”^[51]

Fast Fashion’s main elements are the concept of Quick Response, Enhanced Design, Responsiveness, and Sourcing and Agile Supply Chains. In the following sections the elements of Fast Fashion and how this system can improve the fashion supply chain will be discussed.

4.1. Quick Response

Quick Response stands for partnership-oriented systems between manufacturers and retailers that are aimed at speeding up the flow of goods. The concept of Quick Response is one of the first approaches to need-based control of goods and information flow. This is especially significant for fast demand changes. Both the diversity of variants in the fashion industry as well as the seasonal circumstances within the context of fashion collections form the basis of the Quick Response concept. The objective is to strongly couple the flow of goods through smaller order quantities and shorter or faster order cycles with the actual demand. This increases the responsiveness to unforeseen changes (e. g. changes in fashion trends). Quick Response can be described as a supply chain strategy that focuses on flexibility and demand-driven supply.

Moreover, the Quick Response concept is based on article-precise registration of the sales data at the Point of Sale (PoS), which are regularly transmitted to the manufacturer. The production planning and control is also made on the basis of the sales data.^[52]

The main components of Quick Response - concluded from several literature - Inventory Control, Product Planning and Barcoding / RFID are described below.

Inventory Control

Inventory Control helps optimizing order processing and fulfillment by reducing the amount of inventory it holds by ordering more frequently and in lower quantity. So Inventory Control is a set of actions that reduces lead times and inventory size in the supply chain. By replenishing stock, Inventory Control also helps to reduce inventory costs to minimize the space required for storage and to better match with market conditions.^[53] From there, it is particularly important that the right level of inventory is defined through Inventory Control. Because on the one hand, high levels improve responsiveness but also leave the supply chain vulnerable to the need for markdowns. On the other hand, low levels improve inventory turns but may result in lost sales if the costumer demand is not met correctly.^[54] Keeping inventory low is especially important, when dealing with fashion products, because they lose their value quickly due to the perishabilty of fashion.^[55]

In consumption, Inventory Control is characterized by short production cycles, high turnover rates, small orders and reduced waiting time.

Product Planning

Product Planning is supported by several technologies - for example Computer Aided Planning (CAP) to create work schedules, Computer Aided Manufacturing (CAM) to control the manufacturing processes and and Compuer Aided Quality Assurance (CAQ) to foster preventative quality management.^[56] Especially Computer Aided Design (CAD) is used most commonly.^[57]

CAD is defined as a „production technolgy in which computers perform new product design.“^[58] It has two areas of activity - design and detailing. The focus of the design is on calculations and the creation of manufacturing documents.^[59] A draft can be modelled and analysed digitally – this allows optimizing the designed product from the very beginning. Therefore, CAD helps performing design operations in about half the time required with traditional methods.^[60] In detail, an ideal combination is tried to be selected from the multi-tude of alternatives. The drafts of the design are complemented by technical information (materials, surfaces, etc.) and the part numbers for each product shall be deposited in parts lists. All in all, CAD is the interface between designs and manufacturing that helps reducing lead times.^[61]

Electronical Data Interchange (EDI)

Many technologies exist to share and analyze information throughout the supply chain. One common technology is Electronic Data Interchange.^[62]

It is defined as a “paperless, computer-to-comptuer relationship between retailers and vendors.”^[63] EDI stands for the cross-company transmission of structured and standardized business or the transaction information between participating companies using open electronic communication methods. Thus, structured business processes can be sup-ported by EDI.^[64] Due to EDI retailers and suppliers regularly exchange information with regards to inventory levels, delivery times, unit sales etc. As a result, both sides enhance their decision-making capabilities, better control inventory and are more responsive to demand. Every stage of the fulfillment cycle is reliant on accurate and timely information being passed on electronically.^[65] Due to this, EDI makes transactions faster and more accurate.^[66] Thereby, lead times can be effectivly shortened.^[67] Moreover, EDI lets retailers do QR inventory planning efficiently.^[68] Furthermore, by the use of EDI supply chains flow more smoothly. And improving the timing and accuracy in the delivery of products, relationships with customers and vendors are strengthened.^[69]

Barcoding and Radio-Frequency Identification (RFID)

To compass Quick Response, it is particularly important to obtain information on all digital material flows and sites throughout the supply chain. This is possible using barcodes or RFID chips. All units of a supply chain can be equipped with a barcode or RFID that identifies them. Using barcode information - about all types of stock in all points of the supply chain - can be entered in a central data system.^[70] An emerging alternative to Barcoding is Radio-Frequency Identification technology. Information is fed into the central data system by using radio transmitters instead of barcodes.^[71] It serves a similar purpose as Barcoding, but in fashion supply chains RFID has significantly higher performance, automation and capability. In conjunction with an EDI system or CAD system, digital information is stored in barcodes or RFID chips in real time across the entire chain and can be made available. This can improve the material flow enormously - lead times are reduced and responsiveness is improved. Incoming shipments can be scanned, checked against purchase orders and paid immediately.^[72]

4.2. Sourcing: Responsiveness and Efficiency

The fashion industry has been facing one specific challenge regarding supply chain management for several years: Sourcing. Therefore, it is not only important to supply stores with the lowest possible amount at the beginning of the season and to satisfy the demand of products that are identified as sales-promoting through replenishment systems. It is also important to perform as many collections changes in the shortest possible time within the season. This requires fast response times on latest fashion trends. Fast post-production on the basis of sales data and production, which is located near to the market, acts as a suitable solution.^[73]

For this reason the production location is one of the most important factors of the fashion supply chain. Decisions regarding the location, capacity and flexibilities of facilities have a significant impact on the supply chain’s performance. Responsiveness and efficiency play an important role in the discussion about the production location. Therefore, the aim is to achieve a high level of responsiveness at the lowest possible cost.^[74]

Especially sourcing decisions^[75] affect both the responsiveness and efficiency of a supply chain. For example, sourcing in low-wage countries like China allows a firm to increase efficiency by providing its products at low costs while responsiveness suffers due to the long distance to the market.^[76]

[...]

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^[1] Cf. Landowski (2015), p. 80

^[2] Cf. Textilwirtschaft (2015): Das Ringen der Riesen, p. 20

^[3] Cf. Landowski (2015), p. 80

^[4] For further Information: Cf. Chopra (2013), p. 32 f.

^[5] Cf. Porter (2010), p. 25

^[6] Cf. Hertel (2011), p. 6

^[7] Cf. Liebmann (2008), p. 667

^[8] Cf. Werner (2013), p. 18 f.

^[9] Cf. Hertel (2011), p. 6

^[10] Cf. Candian Supply Chain Sector Council (2015): Supply Chain Definitions, p. 1

^[11] Cf. Swartz, Inbound Logistics (N. D.): Challenges for Today’s Global Supply Chains, p. 1

^[12] Cf. Bossard Proven Productivity (2015): Supply Chain Management – Challenges and Solutions, p. 1 f.

^[13] Cf. Lexikon der Nachhaltigkeit (2015): Fast Fashion, p. 1

^[14] Cf. Hines (2007), p. 40

^[15] Cf. Textilwirtschaft (2013): Das Ringen der Riesen, p. 20 ff.

^[16] Cf. Zentes (2011), p. 274

^[17] Cf. Lexikon der Nachhaltigkeit (2015): Fast Fashion, p. 1

^[18] Cf. Choi (2014), p. 13

^[19] Cf. Lexikon der Nachhaltigkeit (2015): Fast Fashion, p. 1

^[20] For further Information: Cf. Easey (2009), p. 149 f.

^[21] Cf. Barnes (2006), p. 283

^[22] Cf. Donnellan (2014), p. 188

^[23] For further Information: Cf. Textile Learner (N. D.): Fashion Cyle – Steps of Fashion Cycles, p. 1 f.

^[24] Cf. Fernie (2014), Fig. 6. 3., p. 126

^[25] Cf. Jackson (2006), p. 49

^[26] Cf. Barnes (2006), p. 261

^[27] Cf. Jackson (2006), p. 49 f.

^[28] Cf. Landowski (2015), p. 80

^[29] Cf. Barnes (2006), p. 261

^[30] Cf. Barnes (2006), p. 283

^[31] Cf. Jackson (2006), p. 100

^[32] Cf. Barnes (2006), p. 272

^[33] Jackson (2006), p. 100 f.

^[34] Cf. Barnes (2006), p. 272

^[35] Cf. Choi (2014), p. 10

^[36] Cf. Barnes (2006), p. 261

^[37] Cf. Barnes (2006), p. 283

^[38] Cf. Landowski (2015), p. 80

^[39] Cf. Fernie (2014), p. 82

^[40] Cf. Fernie (2014), p. 84

^[41] Cf. Zentes (2012), p. 133

^[42] Cf. Chopra (2013), p. 268

^[43] Cf. Barnes (2006), p. 283

^[44] Cf. Fernie (2014), Fig. 6. 3., p. 126

^[45] Cf. Zentes (2011), p. 281 f.

^[46] Cf. Diruf (2007), p. 7

^[47] Cf. Donnellan (2014), p. 188

^[48] Cf. Barnes (2006), p. 283

^[49] Cf. Jackson (2006), p. 100

^[50] Cf. Barnes (2006), p. 283

^[51] Cachon and Swinney (2011), p. 778

^[52] Cf. Zentes (2012), p. 603

^[53] Cf. Berman (2013), p. 418

^[54] Cf. Chopra (2013), p. 59

^[55] Cf. Draft (2010), p. 819

^[56] For further Details: Cf. Werner (2013), p. 297 ff.

^[57] Cf. Werner (2013), p. 300 f.

^[58] Cf. Draft (2010), p. 817

^[59] Cf. Werner (2013), p. 300 f.

^[60] Cf. Draft (2010), p 817

^[61] Cf. Werner (2013), p. 300 f.

^[62] Cf. Chopra (2013), p. 65

^[63] Cf. Berman (2013), p. 419

^[64] Cf. Zentes (2012), p. 615

^[65] Cf. Berman (2013), p. 236

^[66] Cf. Chopra (2013), p. 65

^[67] Cf. Donnellan (2006), p. 342

^[68] Cf. Berman (2013), p. 419

^[69] Cf. Berman (2013), p. 236

^[70] Cf. Werner (2013), p. 285

^[71] For further Information: Cf. Werner (2013), p. 286 ff.

^[72] Cf. Chopra (2013), p. 65

^[73] Cf. Zentes (2012), p. 608

^[74] Cf. Chopra (2013), p. 53

^[75] „Purchasing, also called procurement, is the process by which companies acquire raw materials, components, products, services, or other resources from suppliers to execute their operations. Sourcing ist he entire set of business processes required to purchase goods and services.“ Cf. Chopra (2013), p. 440

^[76] Cf. Chopra (2013), p. 54