A critical analysis and comparison of the supply chain networks of both the companies is done using the case studies provided to us. The analysis of the two cases has been done in line with the literature review. The final part of the document deals with two more companies in the fast fashion industry and compares their supply chain strategies with the strategies of H&M and Benetton whose case has been provided to us. The analysis of the two case studies provides us with an insight in to the importance of supply chain for the success of a firm. Supply chain is no longer considered just another element but is considered by many firms to be as important as marketing. It can drastically reduce the cost of the firm and give a strong competitive advantage to the firm which is hard and difficult to duplicate.
Benetton was established in Italy in 1965.It has it presence in 120 countires.12 of its 18 factories are located in Italy. It sells its good through a network of 6500 retailers. It's positioning in the international market is that the company sells good quality garments which are moderately priced. With the analysis of the case we will critically analyse how Benetton has increased its supply chain by utilizing the "Dual Supply Chain" system. We will see how this system takes advantages of both the push and pull factors of the supply chain and increases the performance objectives for the company.
H & M H &M case
H & M is a well known Swedish company and has been a leader both in terms of market share and financial performance of the company. The company's strategy has been continuous expansion to search for the most promising markets available, to produce goods in a cost effective and fast manner and to reduce lead times drastically in order to reach the retailers quickly and capture changes in customer moods and preferences and provide longer shelf life for its products. H&M is also an example of how e-business solutions can be used to obtain competitive advantage in the supply chain of a company. Procurement and logistics can easily track the sales as they share a common IT platform with the retailers. This allows the company to react quickly to any changes in the trends prevalent in the market. H&M also has an efficient inventory management system which reduces the lead times for the firm and ensures efficient stock management.
Operation Strategy of a firm may be defined as set of principals adopted by the organization for decision making to achieve at a reconciliation of the market demand and the operational resources available to the