How a Supply Chain Can Be Effective Free Essay Example, 1750 words

H M does not invest in any production facilities preferring to purchase from over 700 manufacturers around the world, in addition, they do not own stores since they use rented space. Essentially they are the model supplier since they act as a middleman at various stages of the supply chain and consolidate buying volumes to create economies of scale. So as to remain in control of the supply chain they have a central go-down in Germany from where they control the distribution worldwide, their supply strategy allows them to bring products to the market in less than three weeks. In contrast, Benetton has a vertically integrated supply chain which means they control most of their own supply chain, this makes it easy for them to focus on quality control and promote the concept of worldwide brand awareness. When they are making fast-moving products they will use production facilities in Europe and then use their Asian suppliers for standardization purposes. Another very popular supplier is Zara, which focuses on small scale production to enhance its time-based strategy; the new products are pilot texted in stores and this acts as part of the publicity for the company. We will write a custom essay sample on How a Supply Chain Can Be Effective or any topic specifically for you Only $17.96 $11.86/page