ANALYSIS OF SUPPLY FIRST FASHION STRATEGIES
- Executive summary
The assignment is a case study which focuses on the supply chain of Garments in the retail form listed three companies;
- Benetton,
- H&M,
- Zara
These companies are global competitors in the market Turker, (2014). The case study structures into four manufacturing, designing, selling, and distribution of the product.
The supply chain strategies used are different in all companies. They also own manufacturing plants and automated systems of distribution all over the world. Zara is the most Proffered supply chain strategy in the world because manufacturing is by a highly-skilled workforce Turker, (2014).
- Introduction
The study of the supply fashion of the companies is about the quick pick-up class of retailers. The research focuses on the strategic stages of manufacturing, designing, distributing, and selling the products of the three companies. Each company has its business initiative, although all of them have been successful in their international trade.
- Discussion
Operations of H&M, Benetton, and Zara differ in their supply chain strategies in many ways; the approach of these three companies are present in the discussion below:
H&M:
It started its business in Sweden in the year 1947. The firm has a clothing line and cosmetics situated in 20 countries all over the world. H&M lacks its own manufacturing company; therefore, it operates with suppliers. The supply time depends on the nature of the goods produced.
H&M distribution is done manually by sub-contractors; in contrast, stock management is internal.
The retail store is the final supply stage for their products.
Zara:
It opened in 1975 in Spain. The survey shows that there are more than 1300 stores in more than 39 countries in the world.
The distribution of Zara products is controlled by one entity, thus increasing the market shares of the company. Designing is done by extensive efforts from Specialists, Marketers, and potential buyers.
Zara is the leading industry in fashion garments. Assembling of products its products is often done in warehouses.
The last stage of the supply chain is retailing and selling of the products.
The unique thing with Zara is that the garments are sold within 15 days after the supply due to their different designs, which make them differ from other companies Feiglová, (2009).
Benetton:
Benetton started its retail trade 50years back.it had grown in over 120 countries by the year 2005. The clothes designs are done by 300 designers and above with the configurations specified in various countries.
The stage of manufacturing is located in India. The main responsibilities are coordinated from Italy, the central manufacturing unit.
The major investments of Benetton are automated systems that fully synchronize online operations.
The last stage of the supply chain is retail. The retail shops were once small but have been shaped to spacious stores for retail trade.
Comparison
In this section, how the three companies differ in their strategies is discussed.
The three enterprises emphasize the essence of designing. H&M designs are costly compared to Zara and Benetton. The work of the department is to find the price, fashion, and quality of the products to decide on the dates of delivery. The design Zara is organized into women, children, and men’s products. Turker, (2014)
Benetton has standardized its products all over the world with almost 300 designers
In terms of manufacturing, Benetton deals mainly with products from the plants of Italy. Benetton practices some division of labor where a different, manufacturing plant manufactures each product.
Zara and H&M lack their factories. They are offering seasons of trading their products annually. The leading practitioner of the idea is Zara.
There is a more prominent investment of warehouses in Zara and Benetton; the assembling of products and distribution is done here. Benetton has an automated system of tracking the garments during delivery. In contrast, at H&M, there is internal management of the company’s stocks. Distribution is also sub-contract. After arrival, an inspection of goods is done for retail purposes.
The company manages the retail of H&M products due to private ownership. It differs from Zara stores in that products from this company are sold within 15 days after distribution; thus, Zara is the best company with the stage of the selling strategy.
A private individual first ran Benetton stores in small retail; currently, the stores have collaborated in bigger stores for large retail trade.
- Recommendations
Of the three companies, the facility of products is not manufactured. Zara owns several suppliers, but the products still delay. The recommendations below can improve the strategies of all the three companies.
Consumer-supply relationships:
There is a need to have collaborations and functional relationships between the supplier and the consumers to improve the supply chain strategy and make the supplies on time without inconveniences. Demands can be easily met through this effort. The long lasting connections lead to access to more prominent information. Blackhurst, (2008)
Improving procurement procedure:
The procedures that explain the methods used in each procurement procedure should be outlined for the company because it’s the main constituent of operating the businesses. The supply chain elements of the business should be integrated vertically. Turker, (2014)
References
Turker, D., & Altuntas, C. (2014). Sustainable supply chain management in the fast fashion industry: An analysis of corporate reports. European Management Journal, 32(5), 837-849.
Shen, B. (2014). Sustainable fashion supply chain: Lessons from H&M. Sustainability, 6(9), 6236-6249.
Feiglová, M. (2019). Attitudes of Generation Y to Fashion Consumption: The Zara Case.
Wu, T., & Blackhurst, J. V. (Eds.). (2009). Managing supply chain risk and vulnerability: tools and methods for supply chain decision-makers. Springer Science & Business Media.