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Table of Contents
1. Why the Chase Strategy is More Relevant Than Ever
In today’s fast-moving fashion landscape, adopting a chase strategy is no longer optional—it’s a competitive advantage. At its core, a chase strategy is a responsive inventory approach that allows brands to produce and replenish products based on real-time demand, rather than forecasting months in advance. This method is especially effective for apparel and fashion companies that want to stay aligned with shifting consumer trends and reduce overstock risk.
Traditional Buying vs. Chase Strategy
Historically, fashion brands relied on seasonal bulk ordering, making major buying decisions up to six months ahead. While this approach might work in a stable environment, it often results in overproduction, deep discounting, and excess inventory, especially when trends shift unexpectedly or products underperform. These markdowns eat into margins and leave boutiques and emerging labels vulnerable to cash flow challenges.
In contrast, a chase strategy flips the model. Instead of betting on long-term forecasts, brands commit to smaller initial orders and use real-time sales data to inform replenishment decisions. By chasing demand as it unfolds, you stay lean, responsive, and profitable.
Why Now?
The urgency to adopt a chase strategy has never been greater. With ongoing tariff fluctuations, inflation-driven cost spikes, and unpredictable consumer behavior, brands need an agile system that can absorb shocks and seize short-term opportunities. The ability to respond—not just plan—has become the defining trait of successful fashion businesses.
Whether you’re running a boutique label or managing multi-channel operations, building a chase-ready supply chain enables you to protect margins while staying ahead of the curve.
Want to future-proof your brand’s inventory strategy?
Book a chase strategy consultation with Yushkova Design →
2. The Core of the Chase Model Playbook
To understand how the chase strategy works, it’s important to compare it with the more traditional push model.
Push vs. Chase: What’s the Difference?
- Push Model: Production is based on demand forecasts made months in advance. Inventory is “pushed” to the market regardless of real-time performance.
- Chase Model: Production and replenishment are triggered by actual demand signals. Inventory is “chased” to meet real-time market needs.
In the fashion world, timing is everything. The push model leaves brands exposed to outdated products, trend misses, and excessive markdowns. The chase model minimizes these risks by staying close to the customer and reacting fast to what’s actually selling.
Benefits of a Chase Strategy
- Reduced Inventory Risk: Order in smaller, smarter batches and only replenish what’s working.
- Higher Sell-Through Rates: Products stay relevant and align with current demand.
- More Cash Flow Flexibility: Free up capital that would otherwise be tied up in excess stock.
- Stronger Vendor Collaboration: Create supplier readiness programs that support faster response times.
Why Small and Mid-Sized Fashion Brands Have the Advantage
While large legacy retailers often struggle to shift from rigid supply chains, small and mid-sized fashion brands are perfectly positioned to implement the chase model. With fewer layers of bureaucracy, closer relationships with manufacturers, and more direct access to consumer feedback, agile labels can make changes quickly and reap the rewards faster.
At Yushkova Design, we specialize in building chase-ready systems for emerging fashion brands—whether you’re DTC, wholesale, or both.
Read more about our guide on Continuous Improvement.
3. Minimum Viable Thresholds: Planning for Strategic Reordering
In a successful chase strategy, everything begins with defining the right minimum viable threshold—the inventory level at which you trigger a reorder. This isn’t just about picking a number. It’s a calculated decision based on real-time performance indicators.
How to Set a Minimum On-Hand Threshold per SKU
Every SKU has a different sales rhythm. Use a rolling window (such as the last 4-6 weeks of sell-through) to understand performance trends. Your reorder point should balance demand velocity with your supplier’s lead time and your internal processing buffer.
Formula to Start With:
Minimum Threshold = (Average Weekly Sales x Lead Time in Weeks) + Safety Stock
Incorporating Trend Velocity, Lead Time, and Conversion Rates
To refine your thresholds:
- Trend velocity tells you how fast a product is picking up interest. A spike in social engagement or store traffic could warrant a tighter threshold.
- Lead time should include both production and logistics—track this by SKU and vendor to spot weak links.
- Conversion rate connects traffic to sales. Higher rates mean you may hit threshold levels faster and need quicker reorders.
Brands that succeed with the chase strategy update these numbers weekly, not seasonally.
Use Real POS Data and Velocity Scoring to Drive Decisions
Integrate your POS system with your planning model to automate alerts. Create a velocity scoring index (e.g., 1–5) per SKU to rank urgency. Pair this with sell-through curves to time reorders before you lose momentum.
Example: One Yushkova client saw a 32% margin lift after switching to threshold-based reordering during a viral product run—without overbuying.
4. Supplier Readiness Programs: Making Your Factory Chase-Ready
Even with perfect internal logic, a chase strategy fails if your factory partners can’t keep up. Building a supplier readiness program is essential to ensure that your production partners can respond quickly, reliably, and without sacrificing quality.
a. How to Build a Tiered Vendor Structure to Support Replenishment Agility
Classify your vendors into tiers based on their speed, capacity, and flexibility:
- Tier 1: Fastest lead times, high reliability, local/regional factories.
- Tier 2: Longer lead times but scalable capacity, typically offshore.
- Tier 3: Specialized or experimental SKUs—lower volume, higher risk.
Use this structure to match products to the right supplier based on their role in your replenishment plan.
b. Communicate Clear Response Timelines and MOQs with Suppliers in Advance
Prevent delays by setting:
- Expected response time for PO confirmations.
- MOQ rules per SKU and fabric group.
- Forecast visibility: share rolling demand projections so vendors can plan ahead.
The clearer the framework, the better your supplier can prioritize your chase orders.
c. Negotiate Shared Risk Models
In the chase model, speed matters. Consider working with vendors to hold greige fabric stock (unfinished fabric that can be dyed/finished later), or pre-agree on fabric reserves for fast-selling SKUs. Explore:
- Blank PO Agreements for top 10 SKUs.
- Pre-approved reorder kits with fixed specs and pricing.
- Raw material holding for rapid activation.
Tip: Yushkova Design helps brands set up factory SLAs (Service Level Agreements) to institutionalize chase-readiness across all suppliers.
5. Tiered Lead Time Mapping: Matching Supply to Demand Realities
One of the most critical components of a successful chase strategy is structuring your lead times around product performance and demand volatility. Not all SKUs move at the same pace, and your supply chain shouldn’t treat them the same way.
Start by segmenting your assortment into three clear categories:
- Fast Movers: Core products or trend-driven items with high turnover rates.
- Seasonal Bets: Items tied to calendar-based demand (holidays, festivals, weather).
- Test SKUs: New designs or silhouettes you’re trialing with limited buys.
Once segmented, create a tiered lead time matrix to assign realistic and strategic replenishment windows:
- Tier 1 (2-week lead time): Reserved for high-volume styles with proven repeat demand.
- Tier 2 (4-week lead time): For steady-moving seasonal pieces or established bestsellers.
- Tier 3 (6-week lead time): Used for slower-moving categories or longer production cycles.
Layer in regional or local vendors wherever speed is a priority. For Tier 1 replenishment, partnering with nearby factories or vertically integrated suppliers can cut delivery times drastically—allowing you to chase demand without missing peak windows.
This approach ensures your inventory reacts to reality—not just forecasts—while optimizing cash flow and reducing overstock risk.
Additional Resource : Optimizing inventory for profitability successionplan
6. Reorder Triggers and Chase Logic in Action
An effective chase strategy depends on clearly defined reorder triggers—not gut feeling or arbitrary timelines. To build a repeatable system, you must base reorder decisions on measurable inputs.
Start by calculating the inventory cover for each SKU:
- Take your current inventory on hand.
- Divide it by average daily or weekly sell-through.
- Factor in production + transit lead times from your vendor matrix.
When your inventory cover dips below your chase threshold (typically 1.5 to 2.5x lead time), it’s time to reorder. This ensures you stay in stock without bloating your warehouse.
Layer in dynamic forecasting:
Rather than relying on static sales plans, monitor real-time inputs like:
- POS and eCommerce sell-through rates
- Returns data (to avoid chasing underperformers)
- Social signals (search volume, influencer mentions, UGC velocity)
These insights allow your chase logic to adapt fast—pushing reorders when products go viral, or pausing replenishment when a trend cools off.
Case Summary:
A boutique client at Yushkova Design was struggling with dead inventory despite having strong initial launches. By moving from monthly to bi-weekly reorders, aligned with a chase model and vendor tiering, they improved sell-through by 38% and cut their end-of-season markdowns in half.
This switch was made possible through real-time demand sensing, SKU segmentation, and simplified order automation—all pillars of a strategic chase model.
Want to replicate this success in your brand?
Book a Chase Strategy Session with Yushkova Design and implement reorder logic that boosts both margin and responsiveness.
7. Financial Modeling for Chase Replenishment
A successful chase strategy isn’t just about moving faster—it’s about making smarter financial decisions. To avoid overbuying while capitalizing on demand, you need to understand the costs associated with both delay and overproduction.
Calculate Cost of Delay vs. Cost of Overproduction
- Cost of Delay:
Consider lost sales opportunities when inventory isn’t replenished quickly enough. Calculate the revenue lost per day a product is out of stock versus the cost of expedited production or shipping. - Cost of Overproduction:
Assess the financial impact of overbuying, including storage costs, potential markdowns, and tied-up cash flow. This analysis helps determine if placing a larger order upfront outweighs the flexibility of smaller, more frequent replenishments.
Margin Mapping Based on Timing, Vendor Tier, and Demand Confidence
- Timing:
How quickly can your suppliers replenish stock without sacrificing quality? Faster lead times often justify slightly lower margins due to increased sell-through potential. - Vendor Tier:
Segment suppliers into tiers based on their lead times and MOQ flexibility. For example:- Tier 1 (Quick-Turn Vendors): Higher cost per unit but faster response.
- Tier 2 (Standard Lead Time Vendors): Lower cost per unit with longer production windows.
- Demand Confidence:
Use historical sales data, social signals, and trend analysis to assess product demand confidence. Prioritize faster replenishment for high-performing SKUs while using cautious replenishment strategies for lower-confidence items.
Using Profit-Weighted Decision Models
Develop a decision-making framework that weighs:
- Potential revenue gains from fast replenishment.
- Margin impacts across different vendor tiers.
- Risk of markdowns or stockouts.
By combining these variables, you can confidently decide when to chase inventory and when a bulk buy might be more cost-effective.
Example Scenario:
A high-velocity SKU shows a 20% increase in weekly sell-through. Using your profit model, you determine that replenishing through a Tier 1 supplier (with a slightly higher unit cost) yields greater profitability than waiting for a Tier 2 supplier with longer lead times—despite the lower margin.
8. Pitfalls to Avoid in a Chase Strategy
While a chase strategy helps minimize risk and capitalize on demand, poor execution can undermine its benefits. Avoid these common pitfalls to ensure your replenishment system runs smoothly:
1. Delayed PO Approvals Killing the Lead Time Advantage
Even with a responsive supplier network, slow internal processes can negate the benefits of faster lead times. When replenishment triggers occur, approvals need to happen quickly to maintain momentum.
Solution:
- Implement automated reorder triggers tied to inventory thresholds.
- Establish clear approval workflows with defined turnaround times.
2. Inconsistent Vendor Communication
Frequent changes in order quantities or delayed communication can strain supplier relationships, causing production delays or quality issues.
Solution:
- Set up regular check-ins with key vendors to review lead times, capacity, and upcoming replenishment needs.
- Use centralized communication platforms to ensure all stakeholders are aligned.
3. Lack of Buffer Materials or Over-Reliance on Single Suppliers
Without a buffer stock of critical materials (fabrics, trims) or alternative suppliers, even the best chase strategy can break down due to production bottlenecks.
Solution:
- Pre-position raw materials for high-velocity SKUs with key suppliers.
- Diversify supplier networks by onboarding backup vendors with aligned lead times and capabilities.
4. Ignoring Demand Signals
A chase strategy thrives on real-time data. Failing to integrate POS analytics, social signals, or trend tracking can lead to missed opportunities or overreplenishment of underperforming items.
Solution:
- Incorporate demand sensing tools into your inventory management system.
- Regularly review sales velocity and social trends to adjust replenishment plans.
By avoiding these pitfalls, your chase strategy will remain agile, allowing you to replenish popular items quickly while maintaining control over inventory and margins.
Learn more:
Take a look at our Guide – Retail Operations
9. Yushkova Design’s Chase Model Blueprint
The chase strategy is not a one-size-fits-all solution—it’s a scalable system tailored to your business model, and Yushkova Design helps you build it from the ground up. Here is a Step-by-Step Chase Strategy Framework:
Step 1: SKU Segmentation and Demand Mapping
We begin by analyzing your current product catalog to identify fast-movers, seasonal bets, and test items. This segmentation helps you apply the chase strategy where it matters most—without overcomplicating your operations.
Step 2: Set Minimum Thresholds and Trigger Logic
Using historical sell-through data and live POS inputs, we define reorder thresholds for each segment. These thresholds act as your chase triggers, ensuring you’re only replenishing what’s moving.
Step 3: Vendor Tiering and Lead Time Scenarios
We help structure your factory network into tiers based on lead times, capacity, and MOQ flexibility. This enables multiple chase speeds (e.g., 2-week, 4-week, 6-week restocks) that align with your real-time sales performance.
Step 4: Financial Modeling and Margin Guardrails
Our team builds a replenishment profit model specific to your brand. This includes margin checks, COGS sensitivity by vendor tier, and real-time cash flow forecasting to protect your profitability.
Step 5: System Integration and Team Role Mapping
We provide templates and tools to integrate your chase strategy with existing demand planning or inventory tools. Plus, we define who on your team owns what—from reorder approvals to vendor communication—so it runs smoothly.
Strategies Tailored to Your Sales Channel:
- DTC Brands: Real-time dashboards, social signal integration, and weekly trigger reviews.
- Wholesale Brands: Layered replenishment options based on buyer commitments and shelf velocity.
- Dual-Channel Labels: Hybrid models that balance drop windows with open-stock agility.
Whether you’re a boutique or a growing fashion label, Yushkova Design’s chase strategy services ensure your supply chain can flex with market demand—without the risk of overbuying or markdown burn.
10. Fashion is Fast—Your Supply Chain Should Be Too
Fashion trends shift fast. And if your supply chain isn’t built to react quickly, you’re either sitting on excess stock or missing sales entirely.
The chase strategy gives fashion brands a smarter way to manage inventory—by replenishing based on what’s working, not just forecasting what might work. It lowers risk, protects margins, and frees up cash to invest where it matters most.
With Yushkova Design’s blueprint, even small or mid-sized fashion businesses can unlock the same agility as larger players—without the complexity or overhead.
You don’t need massive infrastructure to win in today’s market. You just need the right model, the right team, and a partner who’s done it before.
Let’s build your custom chase system—before the next trend hits.
Book Your Chase Strategy Implementation Call with Yushkova Design Today
