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Transcript of Benetton case
global fashion brand, based in Treviso, Italy.
founded by benetton family in 1965
about 6,200 stores in 120 countries
stores revenue equal over €2 billion per year
Our recommendations SCM =spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.
ISCM = addresses coordination problems at the tactical & operational levels. Dual Supply Chain management:
postponement = delaying any modifications or customization to a product as long as possible in the production process.
Initiated by Alderson in 1950
Used worldwide by: Dell, Zara etc Outcomes Cycle time reduction
Quick response to demand signals
Distribution of necessary products to defined markets
Focuses on consistency in product quality, efficiency and cost control
Decreases the risk of stockouts appearance
increased customer satisfaction
Development is very costly
May not be always dominant strategy, b. o. requirement for extra money
Reduction in cycle time Financial situation Stock prices of Benetton 2 Types of Supply Chain Sequential Supply Chain=is based on a valid sequence of activities for lowering costs and increase in efficiency.
Integrated Planning System=has better response capabilities, provides consistency in activities of R&D, product design, production and sales.
Thank you! Benetton operates a Dual Supply Chain system (DSC)
Reasons for new strategy only 2 collection per year
very short product life cycle
dynamic & uncertain business environement
need for high customization
Advantages Disadvantages Supply chain Management Traditional apprel chain vs Benetton's supply chain yarn dye
make sell yarn dye
make sell colour commitment
is made here colour commitment is mabe at this point (based on up to date demand information)