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Performance Improvement of
Fashion Industry Through the
 Supply Chain Collaboration



         Course: M.Sc. Project management
                   By: Sannidhi

               Supervisor: Phil Arch
Presentation Content
1) INTRODUCTION
          Aim and Objectives
          What Is Fashion
          History Of Fashion
          Supply Chain Management
          Supply Chain Collaboration
          Why SCM Is Important In Fashion Industry
          Comparison between Project Management and Supply Chain Management
2) LITERATURE REVIEW
          Types Of Supply Chain Collaboration
          Benefits and Barriers Of Supply Chain Collaboration
          Project Management Maturity Cycle
3) RESEARCH METHODOLOGY
          Qualitative and Quantitative Data Approaches
          Data Collection Method
          Selected Organisations
          Sample Size
          Selected Sample Vs. Responses Received
          Type Of Statistical Data
          Research Findings
          Collaboration In Supply Chain Management
          Benefits and Barriers Of Supply Chain Collaboration
          Project Management
          Project Management Methods
4) CONCLUSION
5) RECOMMENDATIONS
6) REFERENCES
AIM AND OBJECTIVES
AIM
—  To provide recommendations to the fashion industry on how to
   improve performance through the supply chain.
OBJECTIVES
—  Understand the meaning of ‘Supply Chain Collaboration’ and
   to what extent is it applied in fashion industry.
—  Investigate the key areas where collaboration may benefits the
   fashion industry.
—  Analyse the barriers of effective Supply Chain Collaboration
   in 21st Century.
—  Evaluate whether the project management methods are applied
   in the supply chain in fashion industry, and which methods are
   the most popular ones.
WHAT IS FASION




Fashion is the trends and
styles of modern clothing.

         (Christopher et. al, 2004 )

                                       (Google Images)
HISTORY OF FASHION
        1900-1920’s: S-         1940’s: world-war II (shortage             1960’s: Hippie style
        shaped clothes          of fabric) shorter skirts, more            Or Youth movement
                                synthetic




        21st century’s: More casual and                           1980’s: Power look for working
        free style fashion                                        women, athletic clothing
(Google Images)
SUPPLY CHAIN MANAGEMNT

Supply Chain
Management


               “SCM is the relations
               and integrated business
               processes across the
               supply chain that
               produces products,
               services and information
               that add value for the end
               user”
                    (Jespersen and Lasen,
                                    2005)



                                            (Google Image)
SUPPLY CHAIN COLLABORATION

Collaboration
  In Supply
    Chain
Management


                Collaboration is the
                process of working
                together toward a
                common purpose or
                goal.


                      (Jagdev et. al.
                              2003)


                                        (Google Image)
WHY SCM IS IMPORTANT IN
                FASHION INDUSTRY

                                   SCM helps




                                               Achieve Quick
                 Reducing          Track of
                                               Response
                 Inventories       Suppliers
                                               (QR*)



Lessen                           Compress
                 Enhance asset
operational                      order cycle
                 productivity
cost                             time
PROJECT MANAGEMENT
                  Project management is a
                  carefully planned and
                  organized effort to
                  accomplish a successful
                  project.




                                            A project is a one-time
                                            effort that produces a
                                            specific result, for
                                            example, a building or a
                                            major new computer
(Google Images)                             system.
PROJECT MANAGEMENT METHODS
                                     PRINCE 2
                      Project Cost
                      Accounting
                        System                     BS 6079



         Risk
      Identificatio                                               Gantt Chart
           n




   Communic                                                           Microsoft
   ation Plan                          PM
                                      Methods                          Project




       Work
    Breakdown                                                     Network
     Structure                                                    Diagram
      (WBS)

                       Graphical      Program
                      Evaluations    Evaluation   Critical Path
                      and review      & Review      Method
                      Techniques     Techniques     (CPM)
                        (GERT)         (PERT)
SUPPLY CHAIN MANAGEMENT
 AND PROJECT MANAGEMNT

Project Management   Supply Chain
                     Management

Defined beginning    Defined beginning
Defined Ending       Defined Ending
Defined scope        Defined scope
Time associated      Time associated
Defined cost
Defined inputs       Defined inputs
Systems view         Systems view
Customer focused     Customer focused
Literature Review
TYPES OF SUPPLY CHAIN
            COLLABORATION
         •  the organizations involved recognize each other as
TYPE I      partners and, on a limited basis, coordinate
            activities and planning.



TYPE     •  the organisations involved progress beyond
 II         coordination of activities to integration of activities.


         •  the organisations share a significant level of
TYPE        integration and each party views the other as an
 III        extension of its own firm.
                                     Suggested by Lambert and Stock (2001)
BENEFITS AND BARRIERS OF
       SUPPLY CHAIN COLLABORATION
                                                                                               Benefits of SCC*

        More Demanding                                                                           Unique Product 
      Customers
                                                                               Services
        Greater Competitive                                                                      Fast RD Cycle Times
      Intensity
                                                                                 Superior Quality 
        Shifting Channel                                                                         Cost Competitiveness
      Power
                         Shift towards SCC*                                          Shorter Order Cycles
        Economic                                                                                 Flexible Customer
      Globalisation
                                                                           Responses
        Tighter Alliance                                                                         Enhance Delivery
      Relationships
        Compressed                              Barriers of SCC*                               Performance
                                                                                                  Better Asset
      Product Cycles
                                                                          Management 
        Continued Merger         Lack of Top Management Support 
                                Superior Channel
      Activity
                  Nonaligned Strategic and Operating 
                          Relationship
        New Technology
          Inability/ Unwillingness to Share Information                 
        Shifting Competitive   Information 
                                                     (Robins, 1998; Koloszyc,
      Focus                      Lack of Trust Among Supply Chain Members
                      1998; Mentzer et al., 2000;
                                 An Unwillingness to Share Risks and Rewards
                   Barratt and Oliveira, 2001;
                                 Inflexible Organisational System and Processes
                         Dr. Mentzer, 2010)
                                 Cross-functional Conflicts
                                 Inconsistent/Inadequate Performance Measures
                                 Resistance to Change
                                 Lack of Training for New Mindset and Skills
                                            Barratt and Oliveira, 2001; Mentzer et al., 2000
* Supply Chain Collaboration
PROJECT MANAGEMENT MATURITY
           CYCLE

                                                                                   5.
                                                                               Continuous
                                                                              Improvement

                                                                 4.
                                                            Benchmarking


                                               3.
                                             Similar
                                           Methodology

                               2.
                           Common
                           Processes
              1.
           Common
           Language




Figure 2.6. Kerzenr Project Management Maturity Model (PMMM) levels. Adopted from: Kerzner
(2001).
Research Methodology
QUALITATIVE AND QUANTITATIVE
           DATA APPROACHES



       Quantitative approach:                               Qualitative approach:
1. It is categorized with descriptive                1. It includes historical research
research, correlational research,                    and qualitative research;
causal-comparative research and                      2. It collects narrative data to gain
experimental research;                               insights into phenomena of
2. It collects numerical data in                     interest;
order to explain, predict and or                     3. Data analysis includes the
control phenomena of interest;                       coding of the data and production
3. Data analysis is mainly                           of a verbal synthesis.
statistical.                        (Google Image)
DATA COLLECTION METHOD
                                          Documents (print and
                                           electronic sources)


                    Secondary data
                                           Journals, textbooks,
                                             company reports,
                                         government publication,
                                            newspaper articles




                                                                                                     Data analysis using
Research Question                     Limitations and                          Results and           statistical analysis
                                     Recommendations        Conclusion         discussion




                                                                                                 Recording the answers
                                                                                                        in excel




                                       Questionnaire          Email pilot
                     Primary data     prepared, using     questionnaire and    Final questionnaire       Collecting filled
                                      secondary data      decide sample size     send by e-mail           questionnaire
ORGANISATIONS SELECTED
SAMPLE SIZE
  INDIA: Delhi, Chandigarh,     UK: Birmingham, Stirling and
Bangalore, Hyderabad, Mumbai,            London
            Pune.




                                                          (Google Images)
SELECTED SAMPLE (150) Vs.
RESPONSES RECEIVED (75)




INDIA              United Kingdom
TYPES OF STATISTICAL TESTS




   Tests appropriate for this study: T-test and chi-square
RESEARCH FINDINGS




       P-values and statistical significance of respondent’s against the given hypothesis.
	
  
BENEFITS AND BARRIERS OF
SUPPLY CHAIN COLLABORATION
II. PROJECT MANAGEMENT

In India majority of respondents (almost 82%) said that in their organisation the
project management is poorly managed, but excellent project management
techniques are being followed by most of the UK based organisations (approx.
73%).


Reasons:
Ø  Not much attentiveness/ knowledge about the benefits of using project
  manager
Ø  Vague role definition
Ø  Company is not ready for additional expenses
Ø  The team is an unorganised grouping of people
Ø  No common ground exists other than to meet periodically to work
PROJECT MANAGEMENT METHODS
CONCLUSION

                            UNITED
      INDIA
                           KINGDOM

                         Integration of
Recognise each
                           activities
other as partners                             Supply Chain
Exits theoretically,   Exits theoretically,   Collaboration
not practised much     not practised much

Poorly Managed              Excellent
                                                Project
  Stick to few
                                              Management
   Methods
Recommendations
RECOMMENDATION FOR FUTURE
               STUDY
—  Supply chain management plays a very important part in fashion industry. It would be
    recommended by future research to study what supply chain technique is practised more in
    fashion industry.

—  Project management is considered to be a part of business process. However it has been
    recommended to future researcher to do a detailed study on project management method are
    lacking in India.

—  The further work in the area of project management methods being practised in fashion industry
    will be beneficial and even to the research field in finding the profound benefits. Apart from this
    any further study would focus on why there is a difference in practical and theoretical aspect of
    collaboration in supply chain management. The industry does not work according to the
    rulebook. However it will be advantageous to find what are the possible future research reasons
    behind it.

—  Future research may discuss in detail why project management techniques are lacking in India.

—  In future research triangulation methods (Denzin, 1970) can be opted (commonly known as
    ‘mixed method research’ i.e. the combination of qualitative and quantitative research
    methodologies), to obtain a broader and more rounded picture of the current situation.

—  Any further study should have equal sample size if using statistical analysis, to avoid error while
    calculating the significance of hypothesis (supported or rejected).
Thank you
References
REFERENCES
1.  Christopher M, Lowson R, Pack H (2004). Creating Agile Supply Chain in the
    Fashion Industry. International J Retail Distribution Management 32(8). p367.

2.  Jespersen, B.D and Larsen, T.S. (2005). Supply Chain Management: In Theory and
    Practice. Denmark: Copenhagen Business School Press. p10-14.

3.  Jagdev H. S., Wortmann J. C.,Pels H. J. (2003). Collaborative systems for production
    management. USA: Kluwer Academic Publisher. p277-285.

4.  Barrat, M.A. and Oliveira, A. (2001). Exploring the experiences of collaborative
    planning: the enablers and inhibitors. International Journal of Physical Distribution 
    Logistics Management, Vol. 31 (No. 2), 266-89.

5.  Mentzer, J.T., Foggin, J.H. and Golicic, S.L. (2000), “Collaboration: the enablers,
    impediments, and benefits”, Supply Chain Management Review, Vol. 4 No. 4, pp.
    52-8.

6.  Robins, G. (1998). CPFR collaborative pilots started. RIS News, June, 1998.
7.  Koloszyc, G. (1998). Retailers, suppliers push joint sales forecasting. Stores, Vol. 80, No. 6,
    pp.28-31.

8.  Dr. Mentzer, J. . (2010). Managing Supply Chain Collaboration. Available:
    http://bus.utk.edu/dsi/readings/Managing%20SC_Collaboration.pdf. . Last accessed 5th
    September 2011.

9.  Henrie, M. (1999). Project Management: The Supply Chain View.Available: http://
    www.asapm.org/asapmag/articles/PM_WorldView.pdf

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Performance Improvement of Fashion Industry Through the Supply Chain Collaboration.

  • 1. Performance Improvement of Fashion Industry Through the Supply Chain Collaboration Course: M.Sc. Project management By: Sannidhi Supervisor: Phil Arch
  • 2. Presentation Content 1) INTRODUCTION Aim and Objectives What Is Fashion History Of Fashion Supply Chain Management Supply Chain Collaboration Why SCM Is Important In Fashion Industry Comparison between Project Management and Supply Chain Management 2) LITERATURE REVIEW Types Of Supply Chain Collaboration Benefits and Barriers Of Supply Chain Collaboration Project Management Maturity Cycle 3) RESEARCH METHODOLOGY Qualitative and Quantitative Data Approaches Data Collection Method Selected Organisations Sample Size Selected Sample Vs. Responses Received Type Of Statistical Data Research Findings Collaboration In Supply Chain Management Benefits and Barriers Of Supply Chain Collaboration Project Management Project Management Methods 4) CONCLUSION 5) RECOMMENDATIONS 6) REFERENCES
  • 3. AIM AND OBJECTIVES AIM —  To provide recommendations to the fashion industry on how to improve performance through the supply chain. OBJECTIVES —  Understand the meaning of ‘Supply Chain Collaboration’ and to what extent is it applied in fashion industry. —  Investigate the key areas where collaboration may benefits the fashion industry. —  Analyse the barriers of effective Supply Chain Collaboration in 21st Century. —  Evaluate whether the project management methods are applied in the supply chain in fashion industry, and which methods are the most popular ones.
  • 4. WHAT IS FASION Fashion is the trends and styles of modern clothing. (Christopher et. al, 2004 ) (Google Images)
  • 5. HISTORY OF FASHION 1900-1920’s: S- 1940’s: world-war II (shortage 1960’s: Hippie style shaped clothes of fabric) shorter skirts, more Or Youth movement synthetic 21st century’s: More casual and 1980’s: Power look for working free style fashion women, athletic clothing (Google Images)
  • 6. SUPPLY CHAIN MANAGEMNT Supply Chain Management “SCM is the relations and integrated business processes across the supply chain that produces products, services and information that add value for the end user” (Jespersen and Lasen, 2005) (Google Image)
  • 7. SUPPLY CHAIN COLLABORATION Collaboration In Supply Chain Management Collaboration is the process of working together toward a common purpose or goal. (Jagdev et. al. 2003) (Google Image)
  • 8. WHY SCM IS IMPORTANT IN FASHION INDUSTRY SCM helps Achieve Quick Reducing Track of Response Inventories Suppliers (QR*) Lessen Compress Enhance asset operational order cycle productivity cost time
  • 9. PROJECT MANAGEMENT Project management is a carefully planned and organized effort to accomplish a successful project. A project is a one-time effort that produces a specific result, for example, a building or a major new computer (Google Images) system.
  • 10. PROJECT MANAGEMENT METHODS PRINCE 2 Project Cost Accounting System BS 6079 Risk Identificatio Gantt Chart n Communic Microsoft ation Plan PM Methods Project Work Breakdown Network Structure Diagram (WBS) Graphical Program Evaluations Evaluation Critical Path and review & Review Method Techniques Techniques (CPM) (GERT) (PERT)
  • 11. SUPPLY CHAIN MANAGEMENT AND PROJECT MANAGEMNT Project Management Supply Chain Management Defined beginning Defined beginning Defined Ending Defined Ending Defined scope Defined scope Time associated Time associated Defined cost Defined inputs Defined inputs Systems view Systems view Customer focused Customer focused
  • 13. TYPES OF SUPPLY CHAIN COLLABORATION •  the organizations involved recognize each other as TYPE I partners and, on a limited basis, coordinate activities and planning. TYPE •  the organisations involved progress beyond II coordination of activities to integration of activities. •  the organisations share a significant level of TYPE integration and each party views the other as an III extension of its own firm. Suggested by Lambert and Stock (2001)
  • 14. BENEFITS AND BARRIERS OF SUPPLY CHAIN COLLABORATION Benefits of SCC* More Demanding Unique Product Customers Services Greater Competitive Fast RD Cycle Times Intensity Superior Quality Shifting Channel Cost Competitiveness Power Shift towards SCC* Shorter Order Cycles Economic Flexible Customer Globalisation Responses Tighter Alliance Enhance Delivery Relationships Compressed Barriers of SCC* Performance Better Asset Product Cycles Management Continued Merger Lack of Top Management Support Superior Channel Activity Nonaligned Strategic and Operating Relationship New Technology Inability/ Unwillingness to Share Information Shifting Competitive Information (Robins, 1998; Koloszyc, Focus Lack of Trust Among Supply Chain Members 1998; Mentzer et al., 2000; An Unwillingness to Share Risks and Rewards Barratt and Oliveira, 2001; Inflexible Organisational System and Processes Dr. Mentzer, 2010) Cross-functional Conflicts Inconsistent/Inadequate Performance Measures Resistance to Change Lack of Training for New Mindset and Skills Barratt and Oliveira, 2001; Mentzer et al., 2000 * Supply Chain Collaboration
  • 15. PROJECT MANAGEMENT MATURITY CYCLE 5. Continuous Improvement 4. Benchmarking 3. Similar Methodology 2. Common Processes 1. Common Language Figure 2.6. Kerzenr Project Management Maturity Model (PMMM) levels. Adopted from: Kerzner (2001).
  • 17. QUALITATIVE AND QUANTITATIVE DATA APPROACHES Quantitative approach: Qualitative approach: 1. It is categorized with descriptive 1. It includes historical research research, correlational research, and qualitative research; causal-comparative research and 2. It collects narrative data to gain experimental research; insights into phenomena of 2. It collects numerical data in interest; order to explain, predict and or 3. Data analysis includes the control phenomena of interest; coding of the data and production 3. Data analysis is mainly of a verbal synthesis. statistical. (Google Image)
  • 18. DATA COLLECTION METHOD Documents (print and electronic sources) Secondary data Journals, textbooks, company reports, government publication, newspaper articles Data analysis using Research Question Limitations and Results and statistical analysis Recommendations Conclusion discussion Recording the answers in excel Questionnaire Email pilot Primary data prepared, using questionnaire and Final questionnaire Collecting filled secondary data decide sample size send by e-mail questionnaire
  • 20. SAMPLE SIZE INDIA: Delhi, Chandigarh, UK: Birmingham, Stirling and Bangalore, Hyderabad, Mumbai, London Pune. (Google Images)
  • 21. SELECTED SAMPLE (150) Vs. RESPONSES RECEIVED (75) INDIA United Kingdom
  • 22. TYPES OF STATISTICAL TESTS Tests appropriate for this study: T-test and chi-square
  • 23. RESEARCH FINDINGS P-values and statistical significance of respondent’s against the given hypothesis.  
  • 24. BENEFITS AND BARRIERS OF SUPPLY CHAIN COLLABORATION
  • 25. II. PROJECT MANAGEMENT In India majority of respondents (almost 82%) said that in their organisation the project management is poorly managed, but excellent project management techniques are being followed by most of the UK based organisations (approx. 73%). Reasons: Ø  Not much attentiveness/ knowledge about the benefits of using project manager Ø  Vague role definition Ø  Company is not ready for additional expenses Ø  The team is an unorganised grouping of people Ø  No common ground exists other than to meet periodically to work
  • 27. CONCLUSION UNITED INDIA KINGDOM Integration of Recognise each activities other as partners Supply Chain Exits theoretically, Exits theoretically, Collaboration not practised much not practised much Poorly Managed Excellent Project Stick to few Management Methods
  • 29. RECOMMENDATION FOR FUTURE STUDY —  Supply chain management plays a very important part in fashion industry. It would be recommended by future research to study what supply chain technique is practised more in fashion industry. —  Project management is considered to be a part of business process. However it has been recommended to future researcher to do a detailed study on project management method are lacking in India. —  The further work in the area of project management methods being practised in fashion industry will be beneficial and even to the research field in finding the profound benefits. Apart from this any further study would focus on why there is a difference in practical and theoretical aspect of collaboration in supply chain management. The industry does not work according to the rulebook. However it will be advantageous to find what are the possible future research reasons behind it. —  Future research may discuss in detail why project management techniques are lacking in India. —  In future research triangulation methods (Denzin, 1970) can be opted (commonly known as ‘mixed method research’ i.e. the combination of qualitative and quantitative research methodologies), to obtain a broader and more rounded picture of the current situation. —  Any further study should have equal sample size if using statistical analysis, to avoid error while calculating the significance of hypothesis (supported or rejected).
  • 32. REFERENCES 1.  Christopher M, Lowson R, Pack H (2004). Creating Agile Supply Chain in the Fashion Industry. International J Retail Distribution Management 32(8). p367. 2.  Jespersen, B.D and Larsen, T.S. (2005). Supply Chain Management: In Theory and Practice. Denmark: Copenhagen Business School Press. p10-14. 3.  Jagdev H. S., Wortmann J. C.,Pels H. J. (2003). Collaborative systems for production management. USA: Kluwer Academic Publisher. p277-285. 4.  Barrat, M.A. and Oliveira, A. (2001). Exploring the experiences of collaborative planning: the enablers and inhibitors. International Journal of Physical Distribution Logistics Management, Vol. 31 (No. 2), 266-89. 5.  Mentzer, J.T., Foggin, J.H. and Golicic, S.L. (2000), “Collaboration: the enablers, impediments, and benefits”, Supply Chain Management Review, Vol. 4 No. 4, pp. 52-8. 6.  Robins, G. (1998). CPFR collaborative pilots started. RIS News, June, 1998.
  • 33. 7.  Koloszyc, G. (1998). Retailers, suppliers push joint sales forecasting. Stores, Vol. 80, No. 6, pp.28-31. 8.  Dr. Mentzer, J. . (2010). Managing Supply Chain Collaboration. Available: http://bus.utk.edu/dsi/readings/Managing%20SC_Collaboration.pdf. . Last accessed 5th September 2011. 9.  Henrie, M. (1999). Project Management: The Supply Chain View.Available: http:// www.asapm.org/asapmag/articles/PM_WorldView.pdf