Hi, I'm Saradha Preethi. A final year MBA student from Amrita School of Business. Welcome back to my Logistics & Supply chain learning space.😇
H&M stands out for selling fashionable, trendy types of clothes and quick-change accessories. H&M guarantees the best consumer offering in every market by holding the right pieces of stock in every store that you want. Best tailored to the needs of the consumer. H&M aims to offer a wide selection of products that inspires consumers to browse and buy passionately.
H&M manages every stage of its supply chain as an importer, wholesaler and retailer. The ongoing production of IT provides excellent support for H&M logistics. Transportation is subject to a deal with third parties, while H&M manages stock control manually. The bulk of the flow of goods is diverted and transmitted through its terminal in Hamburg, Germany, and then distributed to various distribution centres in different countries. When products arrive at these sites, they are inspected and assigned either to the store or to a centralised storage room called "call off warehouse".
H&M fosters close and successful interaction with its suppliers by strategically positioning 30 production oversight offices as a mediating role and fostering contact with partner companies on the latest fashion trends and internal issues of the business. This helps to ensure that the products are delivered at an accurate price and quality and that the suppliers comply with the company's code of conduct. These production offices have a major role to play in the inspection and examination of sample apparel.
H&M - Design
- The collection is designed centrally by the purchasing design department.
- Trying to find the balance between viable and latest deisgns.
- Inspiration of designs came from the trends.
- The collection in collaboration with renewed designer.
- Analysis of styles and designer of previous year.
H&M - Production
- 60% of the items are produced in Asia.
- European suppliers are for fashion sensitive clothes.
- The suppliers are selected on efficiency and working conditions.
- Flexible purchasing.
- Economy of scale.
H&M - Distribution
- Cost - effective mode of transportation (ships, trains).
- Central and local distribution centers.
- Best available location for stores.
- Huge number of stores around the world.
So, you got it there! A short but potentially very informative tour of one of the world's largest fashion retailers' strategic backend systems. If you're ever trying to conquer the fashion retail industry (or maybe just set up a cosy e-commerce retail store), it may be ideal for you to follow in the footsteps of the popular H&M.
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Happy Learning with Sara :)
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