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H&M Supply Chain

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H&M Supply Chain
Table of Contents

Page 2. Introduction

2. Company Background

4. Supply Chain Structure

6. Supply Chain Flowchart

7. Conclusions and Recommendations

8. References

Introduction

This report provides an analysis of the supply chain of H&M and management of that supply chain. A brief company background will be established to better understand the analyses that follow. These analyses will include the structure of the supply chain; key challenges within the supply chain; competitive strategies used to differentiate H&M’s supply chain; value adding activities in the supply chain; and concluding recommendations based on the aforementioned analyses to sustain and strengthen their position in the market place.

Company Background

H&M is a Swedish brand, founded in 1947 in Västerås, Sweden by Erling Persson, which over the years has brought into its product range own-brand clothes, accessories, footwear and cosmetics and caters to women, men, teenagers and children. H&M currently operates as the predominant part of Hennes and Mauritz H&M AB. The H&M Group also owns COS (Collection of Style) targeting an older, more discerning affluent customer and as well as recently acquired FaBric Scandinavien, which includes the chains Weekday, and Monki in addition to the Cheap Monday brand. (H&M Hennes and Mauritz AB 2009)

At the end of the 2008 financial year the H&M group had 1,738 stores in 33 countries including 18 franchise stores, 13 COS stores, 17 Monki stores and 8 Weekday stores (H&M Hennes and Mauritz AB 2009). Since then the Group has increased its fascia to over 1800 stores in 34 countries, most recently expanding into the Russian market.

[pic]
(Hm.com (b) 2009)

Alongside its stores it has also operated an e-tail website since 1998 in addition to a catalogue service, both currently limited to



References: [pic] (Hm.com (b) 2009) [pic] (H&M Hennes and Mauritz AB 2008) [pic] (H&M Hennes and Mauritz AB 2008) Supply Chain Structure Jackson and Shaw (2002) define the supply chain as being an integrated chain of product responsible for the manufacture, delivery and sale of a product to a consumer Word count: 1994 Hm.com (a) (2009) ‘Facts About H&M’ [online] (accessed on 13th August 2009) Available from http://www.hm.com/gb/abouthm__abouthm.nhtml H&M Hennes and Mauritz AB (2008) Full Year Report, H&M Hennes and Mauritz AB. Stockholm, Sweden. H&M Hennes and Mauritz AB (a) (2009) H&M Annual Report 2008, H&M Hennes and Mauritz AB. Stockholm, Sweden. H&M Hennes and Mauritz AB (b) (2009) Six Month Report 2009, H&M Hennes and Mauritz AB. Stockholm, Sweden. Jack, S. (2007) Drapersonline.com ‘Supply Chain Focus: Brands – Chain Links’ [online] (accessed 17th February 2009) Available from http://www.drapersonline.com/news/supply-chain-focus-brands-chain-links/762277.article Jackson, T Li, L. (2007) China Business Feature ‘Fashion Magnates’ Supply Chain Contest’ [online] (accessed on 14th August) Available from http://www.cbfeature.com/china_cio/news/fashion_magnates_supply_chain_contest

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