Although it is possible for companies to perfect their supply chain model in order to maximize efficiency, no companies will realize profits unless they are moving the right products. The consumer behavior and preference in many markets, such as the ones for dish-washing liquid, remain relatively stable and predictable, allowing suppliers to quickly respond to demand for their products. However, other industries, such as the clothing industry, are susceptible to quick, volatile changes in demand from customers. It is in these markets that the prototype becomes an extremely important player in gaining an edge over competition and helping to ensure a profitable year.
PROTOTYPE = TEST DUMMY
Take a Zara shirt, for example. The prototype for this shirt is the brainchild of the design team. They use data concerning current market trends and possible shifts in trends in order to determine possible new styles. Once these prototypes have been determined, a number of them are produced in small numbers and shipped to select stores in order to determine their viability and popularity on the store floor. It is information from these trial periods that the company uses to determine which designs will be manufactured in large numbers and be incorporated into the season’s clothing line. The key to this process lies in the company’s ability to PREDICT trends, and develop prototypes before the mass demand for such items occurs.
Prototype: determines whether or not the company commits to manufacturing, shipping, and marketing the product
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