1. One key to the success of Perry Ellis inventory control system is a supply chain that...

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1. One key to the success of Perry Ellis’ inventory control system is a supply chain that provides visibility of sales and inventory information for every business in the chain. Why are some companies hesitant to share sales and inventory data with their supply chain partners? What are the benefits of doing so?
2. What advantages does Perry Ellis reap by managing its inventory so carefully?

Founded in 1969, Perry Ellis International, a Miami, Floridabased apparel company, has grown rapidly and now manages 27 different brands, including its namesake, Perry Ellis; Jantzen; Savane; Original Penguin; and others. The company manages a global supply network of more than 100 companies and distributes garments in 10 different clothing categories through 7 channels to a variety of regional, national, and international department stores and small independent specialty stores. Because Perry Ellis operates in the ever-changing fashion industry, the company must exercise tight control over its inventory to be successful. The company’s inventory control system had evolved over time and was composed of a set of internally built components that were sagging under the company’s fast growth. As a result, managers were not getting timely inventory reports, one key to success in the fashion apparel business.

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