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Zara, h&m and benneton supply chain management
 

Zara, h&m and benneton supply chain management

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    Zara, h&m and benneton supply chain management Zara, h&m and benneton supply chain management Presentation Transcript

    • Created by ChathuraRavilalHapuarachchi
      Benetton
      Zara
    • 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).
      Zara
      Benetton
    • 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 world’s fastest growing volume garment retailer
      It’s total employment is 40000
      Zara
    • 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
    • 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
      Benetton
    • 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).
      Zara
      Benetton
    • DESIGNING
      Zara
    • DESIGNING
      Benetton
      Their designers are not only design for all the company’s brands but also are engaged in researching new materials and clothing concepts
      Since 2000 the company has moved to standardize its range globally
      20% of its ranges were customized to the specific needs of each country and now only 5-10 percents of garments are customized
      This reduced the number of individual designs offered globally by over 30 percent, strengthening the global brand image and reducing production costs.
    • DESIGNING
      find the optimum balance between the 3 components of H&M business concepts- Fashion, price and quality
      Department
      Task
      Buying volumes and delivery dates are decided
    • MANUFACTURING
      Zara
      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 system to retain some volume flexibility
    • MANUFACTURING
      Benetton
      Allocates production to each of the Non-Italian networks, deciding what and how much is it to produce.
    • 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
    • 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
      • Sub contractors are used for most labour intensive operations like sewing
      21 production office
    • DISTRIBUTION
      Zara
      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.
      Benetton
    • 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’
    • RETAIL
      Zara
      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 a purchase and to revisit the store frequently
    • 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.
      Benetton
    • 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’
    • SUPPLY CHAIN MANAGEMENT
      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