Logistics Performance Measurement for Sustainability in the Fast Fashion Industry

TitleLogistics Performance Measurement for Sustainability in the Fast Fashion Industry
Publication TypeConference Paper
Year of Publication2014
AuthorsCagliano, ACorinna, Mustafa, MSalman, Rafele, C, Zenezini, G
EditorKersten, W, Blecker, T, Ringle, CM
Title of ProceedingsNext Generation Supply Chains
Conference LocationHamburg
ISBN Number978-3-8442-9879-6; 978-3-7375-0340-2
ISSN NumberISSN (print) 2365-4430, ISSN (online) 2365-5070
Keywordsfast fashion industry, key performance indicators., Logistics, Supply Chain Management

The fast fashion sector is characterized by a short time-to-market which adds to
the fluctuating demand faced by this industry where competition requires to
introduce a number of new designs in clothing each season. In such a context,
some firms have started creating independent companies in charge of
managing logistics operations. This strategy allows a direct control over
logistics activities enabling to save time and costs and increase quality.
However, in order to obtain the promised benefits, independent logistics
companies need to be sustainable from both an operational and an economic
point of view. To this end, an appropriate performance management appears to
be essential. The paper develops a structured performance measurement
system for an independent logistics organization part of an Italian fast fashion
company. After reviewing the existing logistics performance measurement
models, the LOGISTIQUAL model was selected because it balances all the
perspectives of the logistics service. The company processes were mapped to
identify the activities to be monitored. KPIs were defined and classified
according to each performance area of LOGISTIQUAL. Prior to its
implementation, the performance measurement system was validated by
applying the indicators to past data. This work provides fast fashion firms with a
methodology to design and implement logistics performance measurement
dashboards that can be used to understand the current organizational behavior.
Such knowledge assists in defining effective strategies to ensure competitive
advantage and long term sustainability. Also, monitoring performances
stimulates people to operate in order to achieve the company’s goals.