Hugo Boss has become known as an industry trend setter for its high quality men’s and women’s fashion apparel, shoes, and accessories. Product leadership, intimate knowledge of their market and customers, and operational excellence are what distinguish the company from others in the luxury fashion goods industry. From an operational perspective, the variability that exists as a result of designing and manufacturing short run fashion products is high. This perpetual shifting of demands and preferences makes it difficult to maintain accurate industry forecasts that result in high risk actions as manufacturing products with no guarantee of sale leading to large scale inventory systems.
The CEO had to walk a fine line between supplying
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Next figure shows the concept to postpone final product configuration that can help to improve operation performance.
4. Inventory Strategy: Generate high turns and minimize inventory throughout the chain.
• The WIP at the supplier factory was reduced.
• The on-hand inventory at Hugo Boss’ warehouse was reduced to two months of forecasted demand.
• Warehouse reported fewer inventory obsolescence and less billable hours for staff due to smaller, more frequent and more predictable deliveries.
• Forecast was readjusted on a weekly basis ensuring that current production schedules accurately reflected observed changes in demand. The result was that NOS service level increased to 99.9%. Objective achieved through the SCO initiative: YES
5. Lead-time focus: Shorten lead times as long as it doesn’t increase cost.
• The change in order frequency was accompanied by a four week reduction in total lead time.
Objective achieved through the SCO initiative: YES
Some other important facts to be considered as results of the SCO initiative are:
There was a reduction of transportation cost of 9% to € 0.29 per item. With a demand of 4065 units per week, they have a cost reduction of €6,062.65 per year.
Service level improved from 97.9% to 99.9 %. In addition it is important to notice that this was possible with increasing the safety stock. Then, we concluded that the safety stock did not increased because the
This means that stock levels of raw materials, work in progress, and even finished products are kept to a minimum. However, this system requires a very carefully planned scheduling for it to work. Inventory levels are closely monitored such that stock is only obtained when it is needed. This makes storage or warehousing easy since less space is required transportation as well.
In the past few years, they have experienced a significant increase in inventory days. Not having attractive inventory leads to a decrease in sales and an increase in discounts and write offs leading to further decreases in EBITDA Margins. In 2009, the inventory turnover took 215 days. This is significantly above Le Chateaus competitors, for example Reitman’s inventory took only 72 days (Annual Report 2010). This means it takes Le Chateaus three times as long to sell inventory compared to their competitors. To make matters worse, this trend has been exacerbated in recent years. Le Chateau’s turnover has ballooned to a staggering 341 days while Reitman’s has kept inventory turnover stable at only 76 days.
A reduction in shelf space and warehouse space could reduce TCC’s revenue and increase transportation and storage expense due to the amplified turnaround time on processing orders.
When a law enforcement officer or other public employee is accused of potentially criminal conduct, they may face three different kinds of interviews or interrogations. If an officer is interviewed as a criminal suspect, they have the absolute right to decline to answer any questions, or to insist that they have a lawyer of their choosing to attend the interview. The first is type is during a criminal investigation; the second is during a disciplinary investigation and finally during the course of civil litigation where there has been damages. During a criminal interview, there is no professional, ethical or moral duty to participate especially without the assistance of an attorney to represent the officer under investigation. It has come to a surprise that many experienced officers will waive their right to silence and give the investigators an audio recorded statement. Some of the inexperienced criminals do not make incriminating statements. The motive for cooperation is to avoid unfavorable publicity.
I had a super day at BNP and was selected to move forward. I was assigned a case study to create a presentation offsite and present it to senior management. I have a Q&A call set up for tomorrow at 1:30pm with an associate over there. After I get more details, could I send over a draft later next week for your review? If you know of any info sources I could reference I would really appreciate it.
In January 2003, Michael Pogonowski, the chief financial officer of Aurora Textile Company, was questioning whether the company should install a new ring-spinning machine, the Zinser 351, in the Hunter production facility. This new machine has ability to produce a finer-quality yarn that would be used for higher-quality and higher-margin products. In deciding whether or not to invest this new machine, NPV and the payback period are critical factors. Firstly, we need to forecast the cash flows that the Zinser 351 will generate in the future. After calculation, the ten-year NPV will be $3, 172,582. Secondly, we use the payback period to analyze the acceptance of this project. Based on this analysis,
The Distribution centers in the 5 regions order every 6 days using a periodic review while maintaining their safety stock levels to ensure a customer service level of 95% (Chopra, 323).
With the advance of technology and the development of society, the competition in industry is increasing intense. If there is no any innovation and just standstill for a company, it will be out of business quickly and be replaced by other competitors. Under this condition, every company wants to make wise strategy to gain profits and strength their competitiveness in the industry. Information technology plays an important role when companies develop strategy.
The company also reduces inventory management cost by maintaining low inventory or just-in-time inventory which is a good technique to gain competitive advantage.
American Apparel (AA) is a well-known United States clothing brand that has gained recognition among the retail industry. American Apparel headquarters is located in Los Angles, California where it manufactures and distributes its clothing products. It is known in today’s society, to be sweatshop free and has a strong belief of workers’ rights. However, American Apparel has had a downfall in the retail industry losing revenue. This research of American Appeal will provide feasible reasons why the company should enter China international market to improve on sales revenue.
This exhibit shows the forecast obtained when assuming a 92% service level, a lead time of one week and a review time (R) of one month.
Hugo Boss is a global luxury fashion goods company that has been working in more than 100 countries, more than 1,000 Boss stores and 5,850 POS retail locations around the world. Hugo Boss main market concentration is located in Europe which represent 69% of 2006 total sales, following by The United States of America with 18%, Asia and the rest of the world with 10% of total sales. This Famous German Company was founded in 1923 by Hugo Boss. After his death, his two grandsons Uwe and Jochen Holy took responsibilities and developed the company, which main interest was on men’s clothing. During the following years, Hugo Boss became one of the most famous brands in the world. Hugo Boss then started to expand the company and his interest in manufacturing other goods, which include
In 1999, the French leading luxury brand, Louis Vuitton, decided to enter the Indian market. Maharajahs, is a Sanskrit title given to those in India who have the title of “great king”, “high king” or “great ruler”. The Maharajahs have been very familiar with Louis Vuitton since the late 19th century. This relationship between the Maharajahs and the Louis Vuitton brand allowed the decision of entering the Indian market a lot easier. However, the relationship itself had reached a halt and when the bureaucratic restoration of India began, the relationship started to decline more. Due to this, Louis Vuitton had to start seeking out an alternative customer base if it wanted to keep up with the ever changing market place in India. The task that Louis Vuitton had was to establish itself as an exclusive brand to fit the perception Indians had about luxury goods while extending its reach as far as possible. Many of the prior strategies that Louis Vuitton has previous started would not very plausible in India’s market place.
Generally, we might say that there is no significant changes happened in the customer satisfaction levels
The purpose of this analysis is to highlight how Carrefour has financed its growth over the last four years i.e. 1968 through 1971 with the help of the Statement of Sources and Uses (Exhibit 1). In addition, the financing needs for the projected growth of the company will be reported and analyzed briefly. For this purpose Pro-forma Income Statements (Exhibit 2) and Pro-forma Balance Sheets (Exhibit 3) have been prepared for the next four years (1972 through 1975).