Inventory management: a constantly evolving art.

In a sector where speed and responsiveness are essential, inventory management is a balancing act. For over 30 years, the Dutexdor Group has adapted its approach while maintaining a permanent stock, a bold choice that has proved a real strength in the face of new market dynamics.

(By Philippe RYBINSKY, General Manager - Groupe Dutexdor)

Why stock?

Having stock enables us to respond instantly to peaks in demand from retailers, who demand constant product availability. This is a key factor in guaranteeing end-customer satisfaction. The Dutexdor Group structures its sourcing around four purchasing categories:
- Collection products (S/W): a risky stock for the Group, with an uncontrolled shelf life.
- Back of Shelf (BOS): the Dutexdor Group stocks for the customer, who makes a moral commitment to use up the stock within 6 to 8 months.
- Special Orders (CoSpé): specific requests from chains with a very short stocking period.
- FOB (Free on Board): no stocking, the chain takes charge of logistics.

The benefits and challenges of storage

Keeping stock offers several advantages:
- Optimum responsiveness to supply retailers rapidly.
- The ability to negotiate advantageous prices thanks to volume orders.
- A secure supply chain, avoiding shortages in the event of unforeseen events (late deliveries, production problems).
However, this choice also entails risks:
- Significant financial investment (warehouse space, capital investment, increase in working capital requirements).
- Risk of stock ageing, particularly for seasonal collections, sometimes leading to product depreciation.

Constantly evolving management

Since 1991, the balance between the advantages and disadvantages of warehousing has changed dramatically. Today, the trend is for retailers to reduce their stocks, shifting the risk to their suppliers. The Dutexdor Group has been able to adapt by continually fine-tuning its inventory management and anticipating market trends. For example, the rise of second-hand goods is having an impact on consumption, requiring a strategic review of stock levels, except for certain segments such as footwear and lingerie.

The rise of special orders (CoSpé)

Special orders have become a strategic alternative. They enable retailers to obtain made-to-measure products, while limiting storage within the Dutexdor Group thanks to just-in-time production. However, their development depends entirely on the retailer, who must assume the risk of holding stock.

The FOB model: another approach

With the Free on Board (FOB) model, retailers manage their own logistics, optimizing transport costs and reducing transit time. For the Dutexdor Group, this model offers the advantage of not having to bear the production risk, although the margin generated by product sales is lower.

A bold but controlled choice

While many market players have abandoned permanent warehousing because of its constraints, the Dutexdor Group continues to do so with optimized management. It is this control that enables the Group to remain a reliable and responsive partner, guaranteeing retailers secure and flexible supplies, while maintaining financial solidity.

Far from being a constraint, inventory management within the Dutexdor Group is a strength, cultivated with expertise for over 30 years. A winning bet in a world where adaptability is the key to success.