VALUE PROPOSITION OFFERED BY UNIQLO
UNIQLO’s evolution and additions to the supply chain model in order to meet the needs of its value proposition; efficiency,
quality, innovation & fast fashion – Speciality Store Retail of Private Label Apparel Model
Efficiency & Cost Reduction
Focus on efficiency + cost reduction:
- Tight partnership with select suppliers,
suppliers were reduced from 120 to 40 to
increase order values with the same
suppliers thus leading to reduced costs
- Long-term Chinese partnerships used to
build a responsive supply chain
- Takumi team created to assist suppliers to
reduce defects, increase efficiency & better
co-ordinate entire supply chain composed of
veteran technicians.
Takumi team leading efficiency, reduced defects
& Kaizen philosophy:
- Takumi teams scope was expanded from
quality control to developing direct
manufacturing skills, quality control systems,
teaching best practices, knowledge transfer
as in case of their largest manufacturer
“Chefeng”
- Takumi team visited manufacturing factories
2-3 times a week + ONE TABLE MEETINGS
Trends & Innovation| Inventory Management
Focus on POS data to stay on top of trends:
- Innovation was key to the Lifewear philosophy
and that was achieved by developing new
products like “fleece jackets” or creating new
partnerships to develop new fabrics like Toray.
- Heatteach fabric introduced in 2002 was a
considerable success, reversing the falling sales
- Integration of Toray + Uniqlo through stable flow
of orders
- Stable flow of orders achieved through POS
data using it to shortlist best sellers.
- Uniqlo had around 30-40 in-house designers
instead of 1 to be able to stay on top of trends.
Inventory Management:
- In collaboration with Casio + Microsoft created a
device to track inventory on hand, sales data etc
- Slow moving SKU’s tracked to ensure price
changes to stimulate sales
- Store, factory and warehouse level inventory
updated everyday, Inbound store logistics
outsourced, supervised and changes noted in
real time
Quality + Efficiency + Low Prices
Supplier Focussed:
- Following Kaizen philosophy through 3
simple steps ; detailed analysis of every
step of production to identify systemic
quality issues, strict product quality control
to identify defective SKU’s, comprehensive
staff training program.
- Suppliers increased from 40 to 60 to meet
volumes of orders effectively
- Distribution centres created to make it
easier for the suppliers to be able to send
inventory
- Price rise in China forced suppliers to
move, thus Uniqlo moved too, to be able
to support their tight knit community fo
suppliers
- For Europe + USA, Bangladesh chosen as
location + strategic partnerships with
major manufacturers to maintain quality
standards