Supply Chain of H&M

Topics: Supply chain, Supply chain management, Value chain Pages: 5 (1433 words) Published: September 11, 2013
SCM Model Of Hennes & Mauritz(H&M)|
SCM Assignment|
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Akash Arora|
9/10/2013|
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The H&M(Hennes & Mauritz)

About H&M Group-:

From a single women’s wear shop in Vasteras, Sweden, to six different brands and 2,900 stores all around the world.

H & M Hennes & Mauritz AB comprises six independent brands: H&M, COS, Monki, Weekday, Cheap Monday and & Other Stories. The width and variety of the H&M collections mean customers can always find something to suit their style and their wardrobe. There are H&M stores in 51 markets worldwide, and online shopping in 9 countries.

The collections include everything from dazzling party collections to quintessential basics and functional sportswear – for women, men, teenagers and children, and for every season or occasion. In addition to clothes, shoes, bags, jewellery, make up and underwear there is also H&M Home – fashionable interiors for children and adults.

Now we will discuss about Supply Chain Management of H&M…

SCM Of H&M-:
H&M’s supply chain involves a number of processes and people: * Buyers - Our buying office is based in Stockholm, Sweden. Here, our designers, pattern makers and buyers, together with merchandisers in our production offices, create, plan and purchase our collections. * Merchandisers - Based in one of our 15 production offices in Asia and Europe, merchandisers are the link between H&M’s buying office and our suppliers. They identify which suppliers to place orders with.

* Auditors - Also based in our production offices, our sustainability team – consisting of more than 80 people – monitors suppliers’ compliance with our Code of Conduct through our Full Audit Program (FAP) and support progress with actions that go beyond monitoring.

* Suppliers - All our first-tier suppliers sign our Code of Conduct before producing for H&M and we monitor their compliance with it. We aim for our suppliers to take more and more ownership for ensuring good working conditions and environmental performance themselves. We support them in a number of ways, including the provision of training and capacity building. We also help them to develop and improve management systems that will avoid non-compliance on an ongoing basis. Our primary focus is on our strategic suppliers. Strategic suppliers are our best suppliers in terms of the balance between price, lead-time, compliance with our Code of Conduct, quality and sampling.

A supplier may own different factories. In some cases, suppliers may also subcontract other factories for certain tasks. All factories in which production for H&M takes place, no matter if directly contracted or subcontracted must comply with our Code of Conduct and are subject to our Full Audit Program.

* Second-tier suppliers - These are the suppliers of our suppliers. They might include fabric or yarn manufacturers for example. In general, H&M has no direct relations with these companies. Accordingly, we have less direct influence. However, we work in various ways to contribute to improvements at this and other stages upstream in our value chain for example through our Mill Development Programme.

* Factory employees - Hundreds of thousands of people work in our supplier factories. We think that factory employees should know their rights and be able to claim them.

As a buyer, we have a responsibility and an opportunity to contribute to better workplace conditions and to work to raise awareness of rights at work among both factory employees and managers.

Now we will discuss about H&M’s SCM in length…

As per the case study and H&M internet media; H&M collections are created and placed centrally in the design and buying department to find the good balance of three Spin or Purchase Yarn...
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