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Ben Za etto

3/19/12

SUPPLY CHAIN MANAGEMENT

Supply chain management involves planning, design, maintenance and control of the flow of materials and information along the chain in order to efficiently satisfy customer s requirements (Schroeder, 2000).

Ben etto n

Za ra

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INTRODUCTION

Established in 1975 It has stores in 39 countries Annual sales over $3 billion Biggest market is north west Spain In 2003 it has become the worlds fastest growing volume garment retailer Its total employment is 40000

Za ra

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INTRODUCTION

Hennes and Mauritz. Establish in Sweden in 1947 Selling cloths and cosmetics It has 1000 stores and 20 countries Business concept is fashion and quality at the best price More than 40000 employees and revenues of around 60000 million Biggest market is Germany Originator of the fast fashion concept
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INTRODUCTION

UCB Group was present 120 countries Selling casual garment Produce 110 million garments per year Its has 5000 stores and produce revenue of around $2 billion Products are less high fashion Biggest market is Europe Higher quality and durability with higher price than H&M and Zara
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Ben etto n

SUPPLY CHAIN MANAGEMENT

Supply chain management involves planning, design, maintenance and control of the flow of materials and information along the chain in order to efficiently satisfy customers requirements (Schroeder, 2000).

Ben etto n

Za ra

3/19/12

DESIGNING

Za ra

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DESIGNING

Ben etto Their designers n

are not only design for all

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DESIGNING

Departm ent

Task

find the optimum balance between the 3 components of H&M business conceptsFashion, price and quality Buying volumes and delivery dates are decided

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MANUFACTURING

Zara has the fastest lead time in the industry Catwalk to rack time in as a little of 15 days About half of Zara productions are produced in its networks of 20 Spanish factories. Zara buys around 40% of its fabrics from its own wholly owned subsidiary, most of which is in undyed for dyeing after assembly. Most of their sub- contractors work on a single shift 3/19/12 system to retain some volume flexibility

Za ra

MANUFACTURING

Allocates production to each of the NonItalian networks, deciding what and how much is it to produce.

Ben etto n

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MANUFACTURING

Cont

Benetton has a controlling share in its main suppliers of raw materials, to ensure fast supply to its factories Benetton is also known for the practice of dying garments after assembly rather than using dying threads or fabrics This postpone decision about colours until late in the supply process so that there is a grater chance of producing what is needed by the market

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MANUFACTURING
750 suppliers

The actual dyeing and cutting of the garments can then be decided at a later stage in the production

The later an order can be placed on suppliers, the less the risk of buying the wrong thing

21 producti on office 3/19/12

Sub contractors are used for most labour intensive operations like sewing

DISTRIBUTION

Za ra
Ben

Bothe zara and Benetton have invested in highly automated warehouse, close to their main production centers that store, pack and assemble individual orders for their retail networks. 3/19/12

DISTRIBUTION

It stock management primarily handed internally, physical distribution is subcontracted. A large part of the production of the flow of goods is routed from production side to the retail country. Then the goods are inspected and allocated to the stores or to the centralized store stock room. It call as Call-off warehouse
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RETAIL

Average Size 800 m2 Zara produce comfortable stores for their customers The most important characteristic of Zara stores is that garment rarely stay in the store for longer than 2 weeks Because product designs are not repeated The range of garment displayed in the store can change radically every 2 or 3 weeks This encourages customers both to avoid delaying 3/19/12 a purchase and to revisit the store frequently

Za ra

RETAIL

It has larger stores like 1500-3000m2 mega stores that can display the whole range of Benetton products and reinforce the Benetton shopping experience.

Ben etto n

3/19/12

RETAIL

Average Size 1300 m2 Aim of their stores is create a comfortable and inspiring atmosphere in the store that make it simple for customers to find what they want and to feel at home
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SUPPLY CHAIN MANAGEMENT

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World Class Manufactures Minimizing the watefull costs associated with the Value Chain Introducing the Advance Manufacturing Technologies (AMTs), towards maximizing efficiencies, in all related functions of the Value Chain, to ensure startegic cost reduction and improvement of lead time Proving the customer with the a high quality product, more superior to what was expected Distribution Recourse Planning (DRP) JIT concept Continuing good inventory management system

THANK YOU

3/19/12