Supply chain project on H&M
ASSIGNMENT ON
SUPPLY CHAIN MANAGEMENT
BRAND
MENTORED BY:
PROF. SRINIVAS RAO
PRESENTED BY:
PUNEETH.S
INTRODUCTON
Logistics and supply chain management (SCM) as disciplines came to the business world relatively recently, and therefore today they draw a lot of attention. Although sometimes these two concepts are used interchangeably, it is important to differentiate between them. The former appeared first in the 1980s and describes operations within the company focusing on materials management and distribution. The latter emerged only in the 1990s and therefore has a broader view, i.e. adopts the “extended enter- prise” perspective, where the presence of other firms, who collaborate in order to bring the product to the final customer, is acknowledged. The supply chain represents a net- work of raw materials and components suppliers, manufacturing plants, warehouses and distribution centres, stores, and end users.
For a long period of time companies had been directing their efforts to concentrate on individual business functions, but then they started to switch to business process integration among all the links of the supply chain. SCM, thus, strives to enable an efficient flow of right products to the right places at the right time in order to create additional value for customers whilst minimizing costs. It aims for integration within the supply chain.
Fast fashion (FF) shares the same objectives, making the best use of SCM. Brands like capitalize on their ability to spot market opportunity promptly and deliver products at the right time, at the right place and at the right price. However, with its high volatility of demand and increased product variety, FF represents a significant challenge for existing SCM techniques. FF brands generally offer clothes at much lower prices than luxury or mass-luxury brands, and that has to be taken into consider- action too when designing a supply chain in order to minimize costs where possible and
SUPPLY CHAIN MANAGEMENT
BRAND
MENTORED BY:
PROF. SRINIVAS RAO
PRESENTED BY:
PUNEETH.S
INTRODUCTON
Logistics and supply chain management (SCM) as disciplines came to the business world relatively recently, and therefore today they draw a lot of attention. Although sometimes these two concepts are used interchangeably, it is important to differentiate between them. The former appeared first in the 1980s and describes operations within the company focusing on materials management and distribution. The latter emerged only in the 1990s and therefore has a broader view, i.e. adopts the “extended enter- prise” perspective, where the presence of other firms, who collaborate in order to bring the product to the final customer, is acknowledged. The supply chain represents a net- work of raw materials and components suppliers, manufacturing plants, warehouses and distribution centres, stores, and end users.
For a long period of time companies had been directing their efforts to concentrate on individual business functions, but then they started to switch to business process integration among all the links of the supply chain. SCM, thus, strives to enable an efficient flow of right products to the right places at the right time in order to create additional value for customers whilst minimizing costs. It aims for integration within the supply chain.
Fast fashion (FF) shares the same objectives, making the best use of SCM. Brands like capitalize on their ability to spot market opportunity promptly and deliver products at the right time, at the right place and at the right price. However, with its high volatility of demand and increased product variety, FF represents a significant challenge for existing SCM techniques. FF brands generally offer clothes at much lower prices than luxury or mass-luxury brands, and that has to be taken into consider- action too when designing a supply chain in order to minimize costs where possible and
Bibliography: 1. http://about.hm.com/en/About/Investor-Relations/FinancialReports/Annual-Reports.html#cm-menu 2. http://about.hm.com/content/dam/hm/about/documents/en/ci sion/2014/06/1354053_en.pdf 3. http://Blog.hm.com 4. Primary source of Supply chain model from H&M Indian logistics head & senior Merchandiser.