Stock philosophy with Tags

Why does Tags produce to order and avoid large warehouses?

1. Avoid overproduction: Production to order ensures that only what is actually needed is produced. This reduces storage costs, waste and unsold stock.
2. Sustainability: Overproduction leads to waste of resources. Production based on demand protects the environment and materials.
3. Flexibility in model selection: Since the range includes 130 models in many sizes, large stocks would be very expensive. Production to order makes it possible to offer a greater variety without space problems or capital tied up in unsold products.
4. Cost efficiency: A large warehouse causes high fixed costs (rent, personnel, warehouse management). By limiting ourselves to bestsellers in Germany, we only store what is regularly in demand.
5. Quick adaptation to trends: If new designs or colors become popular, the company can react more flexibly and adjust production accordingly instead of sitting on old stock.
   

Small example : Calculating the warehouse size with full storage

Given:

• 130 models
• 12 sizes for adults
• Additionally the same models in children's sizes (12 sizes)

1. Number of combinations:

• Adults: 130 models × 12 sizes = 1,560 article variants
• Children: 130 models × 12 sizes = 1,560 article variants
• Total: 1,560 + 1,560 = 3,120 article variants

2. Stock per variant

Assuming you only keep 10 pairs of each variant in stock:

• 3,120 × 10 = 31,200 pairs of shoes

3. Space requirements

For example, if a pair of shoes (without shoebox) requires 0.5 dm³ of space , this results in:

• 31,200 × 0.5 dm³ = 15,600 dm³ (15.6 m³) pure product volume.
• In addition, there are shelves, storage aisles and safety distances → the actual storage space would be several hundred square meters .

Conclusion

A warehouse with all variants would be huge and expensive. That's why the strategy of keeping bestsellers in Germany and producing the rest to order makes economic and sustainable sense.