Uniqlo, the successful Japanese clothing retailer, is expanding its international market (though it has some struggles, as shown here). It employs a direct business model, eliminating the middleman’s markup. However, it actually boasts the longer days of inventory as contributing to its success, contrary to what the class observed with Dell’s operating strategy. (Original Article Here)

The notebook computer industry is geared towards up-to-date technology and the value depreciates with time, while Uniqlo markets their clothes as staples that are always in style. Since the inventory does not need to be updated as with Dell or constantly in stock as with BMW (Christopher’s post demonstrates how fatal logistics error can be), spending the capital and labour to maintain a shorter shelf-life might simply be a waste.

This creates a distinctive advantage over competitors such as Zara that have overstock of unpopular items every season that must go quickly to keep “on top of the trend”. Uniqlo’s product range has less risk that it will not sell, since each basic item is similar to the previous one that sold. Lower variability, lower risk.

Uniqlo’s store are always filled to the brim with each product; this is hardly possible for other “fast-fashion” chains that compete in the market such as H&M or Forever 21.