Supply Chain Practices of Three European Apparel Companies: Zara, H&M and Benetton


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : OPER068 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Supply Chain Management

Case Length : 14 Pages
Period : -
Organization : Zara, H&M, Benetton
Pub Date : 2008
Teaching Note : Not Available
Countries : Italy, Spain, Sweden
Industry : Apparel

Abstract:

The case discusses the supply chain practices of three of the leading apparel retailers in Europe – Zara, Hennes & Mauritz, and Benetton. Zara, one of the pioneers of fast fashion, developed a fully integrated supply chain model. The processes like design, production and distribution were carried in-house and it owned and operated all the stores. H&M, on the other hand, designed and distributed the garments, and owned the stores, while the manufacturing was completely outsourced. Benetton designed and manufactured all the garments, but did not own any stores. The case details the design, production and distribution practices of the three companies.

Issues:

» Study the supply chain practices of Zara, H&M and Benetton.

» Understand the importance of supply chain in the apparel industry.

» Analyze the strengths and weaknesses of different types of supply chains, and the linkage between strategy and the choice of supply chain type.

» Evaluate how the three companies, through efficient supply chain management, were able to hasten the product delivery process.

Contents:

  Page No.
I. Zara 1
II. Hennes & Mauritz 4
III. Benetton 7
Exhibits 10

Keywords:

Supply Chain, Zara, H&M, Benetton, Design, Production, Distribution, Dual Supply Chain, Central warehouse, Distribution center, Store management, Franchise operations, Fashion industry, Emerging trends, Replenishment, Third party suppliers, Restocking

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