Research On The Influence Of Apparel Enterprises Inventory Management On Financial Performance

Under the impact of turbulent global economy and fictitious economy,the overall apparel industry is in a downturn,and many apparel companies urgently need to restructure,and they face a severe dilemma of overstocking.For apparel companies,too much inventory will occupy the company's funds,threaten the company's capital chain,and make the company lose the opportunity cost.Therefore,how to reduce the inventory holdings has become a major problem for apparel companies.And it is the core content of this article.This article combines empirical research with case study.In the empirical research part,using a multiple linear regression model,taking the financial data of public apparel companies from 2014 to 2018 as samples,we have concluded that the efficiency of inventory management is positively related to the financial performance.In the case study part,this article takes the international apparel brand ZARA,the benchmark of the apparel industry's inventory management,as a case to systematically analyze how the inventory management model affects corporate performance through inventory management efficiency from six aspects of product design,procurement,production,distribution,sales and information management system.ZARA's biggest competitive advantage is that it can meet changing customer needs in the shortest time.Its inventory management model has two major advantages: First,through independent production and delay strategy,ZARA not only can meet customer needs but also reduce raw materials;second,ZARA is centered on the market,and the features of on-time production of small batches and multiple batches can ensure that ZARA can quickly produce products suitable for the market to meet customer needs,thereby reducing the inventory.This article supplements the apparel industry with new cases on inventory management.Taking ZARA as a case study can not only dig deeper into the advantages and disadvantages of the company's inventory management model,and promote the improvement of the company's financial performance.Moreover,the suggestions are valuable for the improvement of management efficiency of other apparel companies.