World Co., Ltd., is a leading Japanese fashion apparel company established in 1959 SPARCS program and aggregate demand planning. Use of Obermeyer method Bottom Up Feedback loop and short interval controls

1. SUPPLY CHAIN
MANAGEMENT AT WORLD
CO. LTD
Submitted by: Group 9
Santosh Mishra – PGP10228
Shweta Kumari- PGP10232
Srishti Singh- PGP10236
Tanay Loya- PGP10240
Chirag Anil Ved- PGP102441

2. WORLD CO. LTD.
World Co., Ltd., is a
leading Japanese
fashion apparel
company established in
1959
Number of Brands sold-
40
No of Shops – 7000
-Maintains separate groups for
each of the brand
-Operate individually
The information system about sales
and inventory is continuously
updated with a day’s time lag
Product
variety kept in
the store are
limited to 1-2
to showcase as
unique product
Japanese
women
required less
size variety
than US
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3. SPARCS
Super Production Apparel Retail
Customer
Satisfaction
SPARCS was introduced in
1992 by Terai
In 1997 Terai became the
president of the company
and transferred the SPARCS
system to all other SPA’s of
World
SPARCS became
basis for
managing supply
chain of all SPA
products at
World
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4. DEMAND FORECASTING
Demand
forecasting
PDCA
Accuracy check
Determination
of error and its
cause
Incorporate
learning in
future forecast
Demand
forecasting
Initial
Forecasting
Updating
Initial Forecast 4

5. AGGREGATE DEMAND FORECASTING
Based on two sets of
calculations
Distribution side
Derived from MMS
(Market Management
System)
-Historical sales data,
growth rate
-seasonality
-changes in micro-
economic conditions –
existing stores
Foot traffic, target
customer, competitive
brands in location – new
store
Category side
Chain wise forecast for
particular product
category on chain wide
sales plan and product
features
Chain wide sales plan –
historical data, market
trend and advertising
expenses
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6. SALES-STOCK-ORDER
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7. OBERMEYER METHOD
Deriving SKU-Level Forecasts
Number of SKUs = 400
As per ABCD rule that Top 10% of SKU represent 40% of sales
Demand Forecast for an “A” SKU =
(220000 *40%)/10%*400 = 2200 UNITS/CHAIN/PERIOD/A-
SKU
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8. HIGH ACCURACY DATA AND RIGHT LEVEL
OF AGGREGATION
Lean Management focuses on collecting and using only required data
Continuous work of Planning teams will focus on obtaining the right level of accuracy for the purpose
Focus the right level of Aggregation
World recorded data on
store/SKU(item/size/color
by store) level
Inventory and material
movement was captured
by the system
Data was available with
a lag of one day and was
easily downloadable
Close to 100% data
accuracy during regular
selling days, but accuracy
was compromised twice a
year during the annual
sales
Gross data error- 20
pieces per 2000 pieces
per store (1%)
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9. ROLES AND RESPONSIBILITIES FOR
EXECUTION OF PROCESSES
• Versatile workers on the production
line with ability to perform
• Small batch sizes in company to
perform different operations
• Workers were compensated well for
versatility and overtime
World
co. ltd
case:
9

10. BOTTOM UP FEEDBACK LOOP AND SHORT
INTERVAL CONTROLS
This helps improve accuracy of the plan.
Demand characteristics including actual demand, change in consumer buying behaviour
and external market factors need to be constantly fed as inputs to the Planning process.
If the plan cannot be adhered to by the shop floor or is not used, the Planning team needs
to understand why and correct the Planning process appropriately
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11. ACCURATE RESPONSE
Accurate response
at World was
captured in three
steps
Materials
Preparation
First Order
Quantity
Replenishment
Quantity
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12. VISUAL MANAGEMENT FOR REVIEW AND
REPORTING
Lean advocates that the
presentation of data and
information at review
meetings and for reporting
purposes be done visually at
the meeting venue for better
impact and faster decision
making
In World Co. Ltd. Case:
Employees used
spreadsheets to
make graphs and
represent
information
More advanced
software could be
used to gain
better insights
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13. Thank you
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