RALPH LAUREN- THE NEED FOR A

FASTER SUPPLY CHAIN

 ROUTE MAP OF PRESENTATION

• An overview of Ralph
Lauren.
Background • Highly volatile Fashion
Industry.
OBJECTIVES
• Agility within a
fashion retailer’s • Understand why fashion
supply chain. retailers need an agile supply
Agility
• How Ralph Lauren chain.
can improve its agility.
• Understand how agility in a
supply chain can be achieved.
Conclusions
 RALPH LAUREN - AN OVERVIEW

• Leader in the design, Marketing and distribution of

premium Lifestyle Products.

• Competitors in fashion retail industry:

Abercrombie and Fitch and J Crew Group.

(Ralph Lauren ANALYST AND INVESTOR DAY, 2016)

2015 2016

Net Income: Net Income:

$702 million $546 million

 HIGHLY VOLATILE FASHION
INDUSTRY

EXCESS

RETAIL

WHOLESALE

E-COMMERCE
• In the last three years, inventory has
grown by 26% whereas growth in sales TOTAL SUPPLY CHANNEL
has only been 7%. DEMAND
 HOW RALPH LAUREN CAN
IMPROVE ITS AGILITY
Sharing Information Lead Times
CLUB WATCHES
MONACO & JEWELRY
• Ralph Lauren: 15 months
• H & M: 3-6 months
POLO RALPH
• Shorter in bound lead times DENIM
SPORT LAUREN SUPPLY
by partnering with suppliers.

Partial Vertical RLX POLO LAUREN AMERICAN

LIVING
Integration
• Each H & M store linked • Keep control of suppliers. RRL CHAPS HOME

to global ERP system. • Cut out intermediaries.

• Information shared • Reduce costs.
between all parts of the • Make supply chain
supply chain. faster. • Focus on evolving three core Brands.
 CONCLUSIONS
• Vital for fashion retailers to respond quickly and be agile because the market
is volatile and uncertain.

• Ralph Lauren can become more agile by:

 Sharing information more effectively

 Reducing lead times

 Partnering with suppliers and considering vertical integration.

 Reducing complexity

 Using appropriate performance measures

 REFERENCES

• "(Ralph Lauren ANALYST AND INVESTOR DAY, 2016)".

2016. Presentation.
• Supply and demand balance picture - UK horticulture ‘not
ready’ to meet healthy diet guidelines, finds new report. "UK
Horticulture ‘Not Ready’ To Meet Healthy Diet Guidelines,
Finds New Report". Producebusinessuk.com. N.p., 2016. Web.
25 Nov. 2016.
• Retail ERP Picture- "Global ERP: Complete Guide Of
International ERP Modules". Solutiondots.com. N.p., 2016. Web.
25 Nov. 2016.