Globalisation

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Globalisation can be described as a free way of doing business with free transaction of capital and workers around the globe. It is the method by which economic boundaries are broken down among each geographic region, province or state which lets nations to trade freely and effectively between themselves with no fear of being financially penalised. The retail fashion industry is facing the same issues as other industries and outsourcing, intellectual property and piracy are challenges that they have to address. Nowadays, majority of fashion companies are relocating clothing manufacturing in countries such as China, Taiwan, India or some other cheaper cost manufacturing nations; even the biggest designer companies who normally take…show more content…
The internet has been the easiest way to copy and reproduce all designs instantly just after a show trade ended. Retail organisations such as Zara are among companies which reproduce designer’s trend with low cost material and sell them cheaper. Zara stores provide new collection to their customers for shorter period and replaced them by another new collection; this means they manage fewer inventories. There is a rapid flow of information that circulates across the channel of their supply chain and logistics system from customers to all store managers to their market specialist passing through distributors to the warehouse responsible, (Carugati, Liao, & Smith, 2008). Rushton, Croucher & Baker (2010, p.23) highlighted that for a global company to perform efficiently Just-In-Time approach, there would be a desire to reduce lead times as well as eliminate unnecessary stock and waste within their operations. Many designers pirated products are sold at cheap prices and they seem hopeless as several of pirated products are on shelves in stores before the original comes out. Logistics strategy to meet the challenges will be focused on the following elements: 1. Logistics strategies should be aligned with operation strategies and integrated into the organisation overall strategies (Christopher, 2004, p.11-12) 2. Accurate information and better working relationship between my company and Hong Kong suppliers in order to reduce lead

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