We can describe the product attributes of tires by quality, brand, price and life-cycle. Understanding which product attributes are values to customer are vital. When customers are purchasing a product, they tend to look at attributes first as their priority. Retailers must also know what exactly the values are, and then they will be able to optimize the assortment. In short, product attributes will determine the demand from customer. Forecasting plays a huge role in supply chain implications, because knowing what the values are, will create a more accurate forecast, lead to a more solid production plan. Moreover, by using data from customers, retailers can minimize the product SKU, and still maintain high customer service. In short using the accurate product attributes to optimize assortment, will maximize sales and profit; if we do not know what customer wants and needs, production plan will mess up, and also lead to high SKU in retailer
An organization with a solid supply chain network allows them to draw a big picture of their material and information flow, allow them to see the movement of material and information from start to end, foresee the value in creating partnership and working together to provide best value to customers. Sephora planned their supply chain network adequately by understanding their network flow, thus create the optimal solution. Uncertainty always arise in a supply chain network, therefore all parties should monitor markets conditions and respond appropriately through improved supply chain strategies (Hanfield). The factors that are important while evaluating a supply chain network are location,