Manufacturing stae of the supply chain
The manufacturing process in the supply chain of fashion is vital for the type and manner in which you want to portray your brand,for the likes of Zara and H&M who to set themselves in the fashion industry rather than concentrating on high quality and high price set themselves in a very competitive and constantly evolving market of fast fashion in which they not only bring out similar garments to what top brands are at the moment they are also following trends and research of there own to stay competitive ,all at a lower price,Benetton also have an approach of slightly higher quality but still reasonable prices.Each have there one intersting manufacturing techniques and processes in reachin there goals.
As per the case study Zara's supply communicates,allowing it to design,produce and deliver a garment in fifteen days.That is an amazing example of how their structure of constant communication has made their manufacturing incredibly reactive to trends and feedback.From my studies I found that Zara process is interesting because they have a single production centre attached to its parent company Inditex, In this centre the layout is designed that there is three different halls , individually seperated into male, female and children.Each area also has its own individual sales, design and production departments.
An obvious effect of this is cost for each area to have its own departments but the advantage is information.The flow of information is faster with less channels for all trends and feedback in each one of the departments to make its way back up and overall leaving the company more responsive which is key in "fast fashion" as they would not have much lead time .
Another factor in Zara's manufacturing process is to keep cost down that the business doesnt own any of the assembly workshops usually for their informal economy workers are from small villages making less than the average industrial wage.
H&M however have a different focus as they have been very succesful through price competitiveness and profitibility through very good management of production, Not only concentrating on being competitevily fast but an expansive company,their strategy comprising of constant expansion , reducing lead times and cost efficient goods production.
Interestingly enough H&M do not own any factories but rely on external suppliers.From my studies I learned that H&M concentrate on the method of production is customer driven.Using traditional research and trend prediction along with new means such as street trends .All this is done in thier 21 National offices .H&M concentrate this into two departments of Buying and Production in which they purchase goods from up to 750 suppliers .These offices function between the suppliers and the buying department depending on goods produced at right price and quality which factors in the cost efficiency.Aswell decisions on orders being placed with the right suppliers ,taking into consideration transporting times and quality aspects.These process is on going throughout the year to minimise risk which lowers lead times and increases flexibilty which is needed to stay competitive in this industry.
United Colours of Benetton do not fall in the same category as Zara or H&M as it is not seen as fast fashion or cheap quality but of a higher standard.Rather than being in depth with research and trends the network is flexible in that it produces twenty percent of thier orders by quick response and then eighty percent is used to maximise capacity utilisation.
Benetton have hundreds of suppliers and sub contractors that they outsourced basic operations in the process utilizing low cost structures while things that can be effeciently costed such as high labour and technology using economy of scale or considered quality essential is done in house. Such quality essential matters as dyeing which innovatively is done after the...
Bibliography: hbswk.hbs.edu/archive/4652.html 12/11/12
1= www.thirdeyesight.in/articles/Imagesfashion_Zara_Part_I.pdf 12/11/12
2= www.writework.com/essay/distribution_channel_clothing_retailers_hennes_mauritz 13/11/12
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