Maithili Shenoy urges retailers to cut supply chains as demand moves in days
At the Sourcing Journal Fall Summit in New York City earlier this week, Maithili Shenoy warned that consumer demand now shifts in days. When production stayed near customers, lead times were short—usually 45 to 60 days. Shenoy said digital platforms can shift consumer demand in just days or weeks.
After global trade agreements expanded, brands moved production overseas to lower unit costs, which gradually lengthened supply chains. Longer lead times made forecasting harder, leading to excess inventory and frequent markdowns that eroded profit. Shenoy argued that judging health by margin percentages hides the real loss of dollar profit when lead times grow. She urged retailers to reset sourcing goals, measure profit in dollars, and shorten lead times to match the speed of demand. Retailers should align product development cycles with real‑time sales data to react faster to trends.
“Demand is largely moving in days, while the supply has gone in the opposite direction and moving in months,” Maithili Shenoy, founder and managing partner of the La Naia Group said.
“Percentages do not pay the bill, dollars do,” Maithili Shenoy, founder and managing partner of the La Naia Group said.
Before production moved overseas, apparel was made near consumers, giving short lead times and predictable seasonal demand. After trade agreements opened, brands shifted overseas to cut costs, which gradually lengthened supply chains and made forecasting harder.
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during her keynote address at the Sourcing Journal Fall Summit, held in New York City earlier this week.
In the 1990s, much of apparel manufacturing was done nearby, so lead times were short—usually 45 to 60 days.
Shenoy said today, digital platforms and social media can shift consumer demand in just days or weeks.
“Demand is largely moving in days, while the supply has gone in the opposite direction and moving in months,” Shenoy told attendees