PRODUCTION/MANUFACTURING
Managing supply chains effectively is a complex and challenging task. Most production units will endeavor to produce goods and services that satisfy high levels of customer demand.
AGILE/MASS PRODUCTION
The agile supply chain is market-sensitive. Market sensitive means that the supply chain is quick and responsive to real demand. This fashion retailer would choose the agile/mass production process for a number of reasons. The fashion industry is developing and changing everyday, the consumers want a choice to what they choose to wear and in what way they would like to express themselves. This production process is suitable for a fashion retailer as it is effective because it directly addresses these issues. It acknowledges the realities of the modern
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Available at: http://smallbusiness.chron.com/supply-chain-management-affect-manufacturing-companies-75841.html Proceedings of the Eastern Asia Society for Transportation Studies, Vol. 5, pp. 1657 - 1672, 2005. Available at: https://www.siam.org/journals/plagiary/1657.pdf
Indiaclass. Available at: http://www.indiaclass.com/objectives-of-supply-chain-management/.
LeanProduction.com, Agile Manufacturing. 2010-2013 Vorne Industries Inc. Itasca, IL USA. Available at : http://www.leanproduction.com/agile-manufacturing.html http://cmuscm.blogspot.ie/2014/09/h-secret-to-cheap-afforadable-clothing.html From idea to stores: Production Process. Available at: http://about.hm.com/en/About/facts-about-hm/idea-to-store/production-process.html
From idea to store: Logistics and Distribution. Available at: http://about.hm.com/en/About/facts-about-hm/idea-to-store/logistics-and-distribution.html
Provide fashion for concious customers. Available at: http://about.hm.com/en/About/sustainability/commitments/conscious-fashion.html
Like REI, Cabela’s manages both consumer direct shipments and store replenishments in the same distribution centers. Cabela’s has three distribution centers as well as two returns processing centers. Each distribution and returns centers being 1 million square feet, can process an excess of 800,000 store, consumer and individual orders. Cabela’s only houses 30% of inventory in its distribution centers and the remaining 70% are stocked at its stores (Supply Chain Digest Home, 2008).
1. What is required for global product roll-out, including who expends which capital , takes which risk and reaps which reward ? Benecol could be claimed as an important nutritional innovation in the world. It is a unique compound composed of plant stanol esters, which have scientifically proven to help lower cholesterol in humans.
Due to their huge success, control over suppliers can be always be maintained by the company. Rivalry among the competitors is the force to reckon with and it is the one that will decide the future profitability of the fashion industry. Competition in fashion is very high since there are only a handful of competitors when looking at the giants. Future Industry evolution Scenario 1 The future of today’s world is technology.
This was the medium constant development of high quality apparel, with attributes of customers’ feedback, to refine the clothing standard. 4.1.2 Product
Artificial intelligence is widely applied in different fields, such as medicine, engineering and design. Fashion industry is one of the industries that artificial intelligence applications are used in production processes. There are four operation processes of the fashion industry: fashion design, manufacturing, retailing, and supply chain management. The fashion industry, or called apparel industry, is the industry engaged in manufacturing garments and accessories and it is one of the most significant economic sectors in the world. Design, manufacturing and retailing are the three compulsory processes for a fashion item from designers and sold to customers.
As H&M ‘s main source of revenue is its fashion clothes they have to monitor their customer needs. • THREAT OF SUBSTITUTES(LOW) Every company in
These characteristics, a complicated supply chain and wide availability of data make the industry a suitable avenue for an efficient supply chain. Also the fashion industry has been in a transition during the last 20 years: significant consolidation in retail, with most of the apparel manufacturing operations moving overseas and, in more recent times, increasing use of e-commerce in retail and wholesale trade. Historically, retailers have tried to exploit relationships with suppliers. Bargaining power of buyers is moderate because of the size and concentration of major retailers. To reduce power and you gain customers, retailers seek to differentiate products and to create stronger brands.
Reasons for choose this manager – ZARA HRM’s importance has grown dramatically in the last two decades. This new importance stems from increased legal complexities and the recognition that human resources are a valuable means for improving productivity, the awareness today of the costs associated with poor human resource management. The report will discuss the ZARA company about the human resource. ZARA is a subsidiary of the Spanish Inditex group, which is not only the clothing brand, but also the franchise ZARA brand clothing retail chain brand. Inditex is ranked first in Spain, the world's third largest clothing retailer, in 2005 its global sales of EUR 6 billion 741 million, sales of up to 429 million, net profit of $803 million.
Fast Fashion is movement of the catwalk designs into he stores in the fastest possible way. It is a speedy response to the latest trends and making them available to the customers at a lower price. A design idea from a runway show in Paris is now available at say for example, Top shop within a month or few weeks. As quoted in Journal of fashion marketing and management: volume 10(3), “fast fashion is a business strategy which aims to reduce the processes involved in the buying cycle and lead times for getting new fashion product into the stores, in order to satisfy consumer demand at its peak.
Coordinate with customer relationship management to identify customer articulated needs 2. Select materials and suppliers in conjunction with procurement 3. Develop production technology in manufacturing flow to manufacture and integrate in to the best supply chain flow for the product/market combination G. Manufacturing Flow Management The manufacturing process produces and supplies products to the distribution channels based on past forecasts. The production process has to be flexible to respond to market changes and Mass Customization must absorb.
On the other hand the fact that Zara produces the remaining 40% internally, is a strong asset, providing better control, and short lead-times. Finally the fact that Zara owns 450 workshops were garments are to be sewed is a major asset ensuring quality. Another important asset in terms of production, is the technologies involved, for instance the cutting machines, to minimize waste (Ferdows & co. 2014 p9), used in combination with the last-final hand-made sewing. The ease of the connection between the production center and the distribution center is also an important time-saver element, and therefore
Resource based view is the tool that is used in order to evaluate the resources that are important for the organisation to make their performance effective. It is regarded as a significant approach that is used by the organisation towards attainment of competitive advantage. The aim of this paper is to evaluate the resource based view literature and then applying the knowledge on the evaluation of a case study organisation. The selected organisation is Zara Fast Fashion, which is analysed with the help of use of RBV towards achievement of sustainable competitive advantage. The theoretical concepts of the resource-based view is analysed and applied on Zara as a real world example.
As a result, the company has suffered for disappointing earnings and sales. One of the reasons is because in the attempt to turn around the company, the raw material and labor cost increased which lead to an increase of 20% per item. As a result, now the company is facing struggles because foreign competitors such as Zara, H&M, Walmart and Target are stealing its customers with cheaper and fresher fashion. Another driving force that affects the fashion industry is the information revolution. The instant availability of information and instantly interaction are the implication that has changed the nature of competition in the fashion industry.
(Refer to figure 5) Using this model, Uniqlo was able to successfully differentiate itself from other retailers by developing unique products based on innovations than fashion trends. They are able to make quick adjustments to the production according to the latest sales trends and minimise store operation costs. This has allowed Uniqlo to sell high-quality clothes at affordable prices. Uniqlo is now working on a new supply chain that combines both their real and virtual business together. They have engaged one of Japan’s largest home builders, Daiwa House Industry, to help construct a state-of-the-art distribution center in Tokyo.