H&M Supply Chain Essay

2368 WordsMar 27, 201310 Pages
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…show more content…
Effective management of the supply chain results in increased efficiency and higher profitability, minimising stock mark downs and quickening response to consumer demand, highly critical in the current age of fast-fashion prevalent within the high street fashion brands. H&M’s supply chain is the factor which has made the brand what it is today, setting it apart from its competitiors and is of vital importantce to its ongoing success. Using a double supply chain H&M carefully balances time, quality and price to get the right product to the consumer at the right time. Supply and demand form the basis of the retail world, and it is the demand created by the consumer for a product could be seen as a starting point in the supply chain process. It could also be argued that creativity forms the basis of the fashion industry, but without market demand and end consumer it would not be an industry. H&M’s head offices are located in Stockholm, Sweden; where some 100 buyers collaborate with over 100 in-house designers and 50 pattern cutters, to produce ideas and designs for the forthcoming season, these are then moulded to suit consumer demand. Over half the designs will be rejected before even making it off the page. Although the year is hostensibly divided into two retail seasons, Spring/Summer and Autumn/Winter; these are divided into six sub-collections, allowing H&M to ensure specific items are not on the shelves for longer than a month, fuelling the consumers’ need for
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