Compare and contrast the supply chain management approaches take by H&M, Benetton and Zara

2719 WordsNov 1, 200911 Pages
The purpose of this essay is to discuss different supply chain management approaches taken by H&M, Benetton and Zara. It is first necessary to explain what a supply chain management means. Supply chain management involves planning, design, maintenance and control of the flow of materials and information along the chain in order to efficiently satisfy customer's requirements (Schroeder, 2000). Such an approach, of looking at the entire supply network helps organisations identify their competitive advantages and parts of their processes that contribute the most to the performance objectives that are of the greatest importance to the customers (Slack et al., 2007). It also helps to develop long-term strategies for the company based on the…show more content…
Traditional fashion retailing was seasonal, with two collections being launched for the spring and summer period and another for autumn and winter. Only Benetton may be described as following this pattern. The company introduces two basic collections per year and supplements them with small flash collections that are being put into the stores in the middle of the seasons to attract customers (Boddy, 2005). H&M and Zara rejected the traditional model and switched to a seasonless cycle where new designs are being introduced throughout the year. Zara mastered this strategy to the extremes by bringing new designs to customers in small batches on a weekly basis. Successful designs will be modified and another batch sent to customers while those that did not meet with customer interest will be moved out of stores within two weeks (Tiplady, 2006). H&M also introduce new designs on a rolling basis like Zara but the company does not apply this strategy to all its products. Fast-fashion garments account for one quarter of H&M's cloths, whereas the remaining three quarters are basic, everyday clothes that once designed are being produced in much larger quantities (Tiplady, 2006). Another difference between H&M's and Zara's approach and Beneton's strategy is the design range offered. All three companies operate world-wide. Zara and H&M however do not differentiate their products depending on where the garments will be sold.

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