UNIQLO Case Study
The Inventory Control Department maintains an appropriate inventory level by checking sales and stock every week and delivering the necessary inventory and new products to fulfill orders. After tracking weekly and monthly sales, the promotion plan will be revised accordingly. These estimates are used to improve production plans and adjust inventory. At the end of each season, the sales manager and marketing department will coordinate the time to mark and limit sales (20-30% off the regular price) to ensure that the product is sold out.
Stock Per Unit
To purchasing raw material for 750 stores around the world, UNIQLO can reduce raw material costs with economic scale. For example, the supply of 100,000 items is considered Big business in the apparel industry. However, in the case of Uniqlo’s SKU (Stock Keeping Unit) per store, even in this very large size, it is only 10 or less. With a huge size, UNIQLO will negotiate directly with the world's leading textile manufacturers.
Supply Chain System
Research and Development UNIQLO defines its concept for each season by its research and development center, which is researching on fashion trend and lifestyle around
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Kaihara can boast a 50% share of the Japanese denim cloth market and the firm also supplies cloth to well known denim manufacturers globally. The relationship between UNIQLO and Kaihara dates back to 1998 when UNIQLO opened its first ever-urban store in Tokyo’s trendy Harajuku area. Kaihara has proved itself to be a strong UNIQLO partner ever since continuing to provide us with high quality denim at surprisingly reasonable
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Advantages Of Uniqlo
1017 Words | 5 Pages(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.
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