NEW YORK, Aug. 18, 2023 /PRNewswire/ -- Recently, US-based fashion supply chain solution provider, Trendsi, has integrated artificial intelligence into its distribution system, ushering in a new era of agile supply chain infrastructure. This innovative approach, spearheaded by Zhi Zhang, the newly appointed Head of Trendsi's North American Logistics, has resulted in an impressive 18 percent reduction in average order costs.
Zhang explained that the logistics landscape in the United States differs significantly from countries like China, where service fees are comparatively lower.
For instance, Zhang highlighted the existence of regional logistics providers, catering to specific areas such as the west coast, north-east and Texas. The selection of a logistics provider now employs artificial intelligence, taking into account factors like weight, fulfillment time, and routes. This optimized approach ensures timely delivery with reduced freight expenses.
Another pioneering initiative by Zhang involves a direct engagement with designers and fashion influencers who sell clothing. Zhang elaborated that while many large e-commerce platforms in the United States prioritize mass-market preferences, the growing trend towards individualized fashion choices has led Trendsi to gather consumer preferences and collaborate directly with designers for tailored production.
This approach not only promotes unique fashion expressions but also enhances product quality. Designers and influencers take active roles in shaping the designs and selecting fabrics, resulting in improved overall product quality. Furthermore, the streamlined production and logistics processes lead to cost savings, which are ultimately reflected in more affordable prices for consumers.
Zhang has also helped elevate Trendsi's long term barrier, building an agile supply chain system and focus on quality products, on-demand merchandising and responsive production. This strategic shift addresses the issue of dead stock that often plagues traditional clothing industries. By reducing production volume and shipping products promptly upon order placement, Trendsi minimizes stock and waste, contributing to environmental sustainability.
In Zhang's view, aligning production with consumer demand has become paramount. He stated, "In the past, production drove sales, but now it is sales that drive production." This change in perspective encourages producers to identify successful styles, facilitating more efficient and focused production.
Zhang's transformative approach draws parallels to his previous success at L'Oreal, where he revamped distribution and supply chain systems in the Chinese market. His dedication and innovative thinking led to a significant increase in sales and streamlined operations.
In conclusion, Zhang's visionary leadership has introduced AI-driven efficiencies, personalized fashion experiences, and sustainability into Trendsi's dropshipping model, resonating with modern consumer preferences and industry demands.
Furthermore, Zhang's remarkable reformative impact is not unprecedented. His dynamic leadership breathed new life into L'Oreal's operations when he joined the company during its third year of market entry into China. Faced with challenges in distribution and supply chain management, L'Oreal established a "Change Management Department," appointing Zhang as the IDS Distribution System Manager. His task was to harmonize the supply chain across numerous independent distribution entities.
Due to unique local conditions and policies in China, L'Oreal couldn't replicate its established direct sales model from European and American markets. This compelled Zhang and his team to build a new framework from scratch, devoid of benchmarks or references. To aid distributors in enhancing their management, L'Oreal collaborated with a software company to develop practical inventory software.
Zhang and his team meticulously installed, trained, and debugged data for over 40 distributors across the nation while creating a dedicated VMI team for software upkeep and management. This concerted effort yielded impressive results, with sales surging by over 50 percent in 2002 compared to the previous year.
According to Zhang, this transformative reform revolutionized L'Oreal's presence in the Chinese market. The transparency of sales information at the terminal level greatly facilitated informed decision-making, relieving distributors of inventory accumulation challenges.
Zhang's journey, marked by innovation, resilience, and visionary strategies, underscores his capacity to reshape business models and optimize supply chains for success. His pivotal role at Trendsi continues to exemplify his commitment to driving efficiency, sustainability, and consumer-centric approaches in the ever-evolving landscape of commerce.
In essence, Zhang's career trajectory embodies a trailblazing spirit that consistently propels industries towards more effective, streamlined, and responsive paradigms, creating a lasting impact that resonates far beyond the boardroom.
