Zara, H and Benneton Supply Chain Management Essay Sample

1. Created by ChathuraRavilalHapuarachchiBenettonZara
2. Supply CHAIN MANAGEMENTSupply concatenation direction involves be aftering. design. care and control of the flow of stuffs and information along the concatenation in order to expeditiously fulfill customer?s demands ( Schroeder. 2000 ) . ZaraBenetton 3. INTRODUCTIONEstablished in 1975It has shops in 39 countriesAnnual gross revenues over $ 3 billionBiggest market is north –west SpainIn 2003 it has become the world’s fastest turning volume garment retailerIt’s entire employment is 40000Zara 4. INTRODUCTIONHennes and Mauritz. Establish in Sweden in 1947Selling fabrics and cosmeticsIt has 1000 shops and 20 countriesBusiness construct is ‘fashion and quality at the best price’More than 40000 employees and grosss of around 60000 millionBiggest market is GermanyOriginator of the fast manner concept 5. INTRODUCTIONUCBGroup was present 120 countriesSelling insouciant garmentProduce 110 million garments per yearIts has 5000 shops and produce gross of around $ 2 billionProducts are less ‘high fashion’Biggest market is EuropeHigher quality and lastingness with higher monetary value than H & A ; M and ZaraBenetton 6. Supply CHAIN MANAGEMENTSupply concatenation direction involves be aftering. design. care and control of the flow of stuffs and information along the concatenation in order to expeditiously fulfill customer?s demands ( Schroeder. 2000 ) . ZaraBenetton 7. DESIGNINGZara

8. DESIGNINGBenettonTheir interior decorators are non merely design for all the company’s trade names but besides are engaged in researching new stuffs and vesture conceptsSince 2000 the company has moved to standardise its scope globally 20 % of its scopes were customized to the specific demands of each state and now merely 5-10 per centums of garments are customizedThis reduced the figure of single designs offered globally by over 30 per centum. beef uping the planetary trade name image and cut downing production costs. 9. DESIGNINGfind the optimal balance between the 3 constituents of H & A ; M concern concepts- Fashion. monetary value and qualityDepartmentTaskBuying volumes and bringing day of the months are distinct 10. MANUFACTURINGZaraZara has the fastest lead clip in the industryCatwalk to single-foot clip in as a small of 15 yearss About half of Zara productions are produced in its webs of 20 Spanish mills. Zara buys about 40 % of its cloths from its ain entirely – owned subordinate. most of which is in unbleached for dyeing after assembly. Most of their sub- contractors work on a individual displacement system to retain some volume flexibleness

11. MANUFACTURINGBenettonAllocates production to each of the Non-Italian webs. make up one’s minding what and how much is it to bring forth. 12. Fabrication Cont…Benetton has a commanding portion in its chief providers of natural stuffs. to guarantee fast supply to its factoriesBenetton is besides known for the pattern of deceasing garments after assembly instead than utilizing deceasing togss or fabricsThis postpone determination about colorss until late in the supply procedure so that there is a grater opportunity of bring forthing what is needed by the market 13. MANUFACTURING750 suppliersThe existent dyeing and film editing of the garments can so be decided at a ulterior phase in the production The later an order can be placed on providers. the less the hazard of purchasing the incorrect thingSub contractors are used for most labour intensive operations like sewing21 production office 14. DISTRIBUTIONZaraBothe zara and Benetton have invested in extremely automated warehouse. shut to their chief production centres that shop. battalion and assemble single orders for their retail webs. Benetton 15. DISTRIBUTIONIt stock direction chiefly handed internally. physical distribution is subcontracted. A big portion of the production of the flow of goods is routed from production side to the retail state.

Then the goods are inspected and allocated to the shops or to the centralized shop stock room. It call as ‘Call-off warehouse’ 16. RETAILZaraAverage Size 800 m2Zara green goods comfy shops for their customersThe most of import feature of Zara shops is that garment seldom stay in the shop for longer than 2 weeksBecause merchandise designs are non repeatedThe scope of garment displayed in the shop can alter radically every 2 or 3 weeksThis encourages clients both to avoid detaining a purchase and to revisit the shop often 17. RETAILIt has larger shops like 1500-3000m2 mega – shops that can expose the whole scope of Benetton merchandises and reenforce the Benetton shopping experience. Benetton

18. RETAILAverage Size 1300 m2Aim of their shops is ‘create a comfy and animating atmosphere in the shop that make it simple for clients to happen what they want and to experience at home’ 19. Supply CHAIN MANAGEMENTWorld Class ManufacturesMinimizing the watefull costs associated with the ‘Value Chain’Introducing the Advance Manufacturing Technologies ( AMTs ) . towards maximising efficiencies. in all related maps of the “Value Chain” . to guarantee startegic cost decrease and betterment of lead timeProving the client with the a high quality merchandise. more superior to what was expectedDistribution Recourse Planning ( DRP ) JIT conceptContinuing good stock list direction system 20. Thank YOU