H&M and Zara-Global Sourcing
ABSTRACT
The purpose of this paper is to use supply management as a tool in analysing the global sourcing processes and activities within two successful leading textile companies: Zara and Hennes and Mauritz (H&M). To describe their logistics and supply chain processes in order to understand how these two companies can add a good value to its customers, to its stakeholders and to its suppliers. Pressure for companies to create and deliver value to customers manifests itself in every stage of the business today. Therefore, we believe it is significant to compare and to contrast these two companies' activities and processes which lead them to success. Ultimately, we intend to provide some suggestions for Portuguese and Turkish textile manufacturers in order to strengthen their competitive strategy as they are very successful to be supplier and preferred by these two leading companies, however not yet in the position to compete in the markets.
KEYWORDS:
Zara, H & M, Supply Chain Management, Global Sourcing, Logistics, Total Cost Analysis, 9 month industry, Just in Time (JIT), Forecasting, Demand, Information Systems, Information Technology (IT), Four D's, Supply planning.
INTRODUCTION
Today's competitive global markets require that companies add value to their customers. More and more companies become aware of the fact that this could be achieved through well-functioning logistics system/supply chain management and global sourcing which allow companies to reduce costs and increase quality. It is therefore in the global markets of today, logistics/supply chain management and global sourcing play a crucial role in the companies' long-term success.
Supply chain management includes all the activities and processes from the raw materials to selling goods to the end customer. Therefore, supply chain management can be described as the "network of organizations that are involved through upstream and downstream linkages, in the different processes and activities
The purpose of this paper is to use supply management as a tool in analysing the global sourcing processes and activities within two successful leading textile companies: Zara and Hennes and Mauritz (H&M). To describe their logistics and supply chain processes in order to understand how these two companies can add a good value to its customers, to its stakeholders and to its suppliers. Pressure for companies to create and deliver value to customers manifests itself in every stage of the business today. Therefore, we believe it is significant to compare and to contrast these two companies' activities and processes which lead them to success. Ultimately, we intend to provide some suggestions for Portuguese and Turkish textile manufacturers in order to strengthen their competitive strategy as they are very successful to be supplier and preferred by these two leading companies, however not yet in the position to compete in the markets.
KEYWORDS:
Zara, H & M, Supply Chain Management, Global Sourcing, Logistics, Total Cost Analysis, 9 month industry, Just in Time (JIT), Forecasting, Demand, Information Systems, Information Technology (IT), Four D's, Supply planning.
INTRODUCTION
Today's competitive global markets require that companies add value to their customers. More and more companies become aware of the fact that this could be achieved through well-functioning logistics system/supply chain management and global sourcing which allow companies to reduce costs and increase quality. It is therefore in the global markets of today, logistics/supply chain management and global sourcing play a crucial role in the companies' long-term success.
Supply chain management includes all the activities and processes from the raw materials to selling goods to the end customer. Therefore, supply chain management can be described as the "network of organizations that are involved through upstream and downstream linkages, in the different processes and activities
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