Supply chain in H&M

 

 H&M is one of the largest fashion retailers in the world. It has branches in 19 countries with over 950 stores. With such a large network in retail, it is a giant in supply chain. Its major power is its efficient and integrated inventory management system. It helps the company to control the stock worldwide. The design team works with 20 production centers worldwide that have 700 suppliers.

It determines customer's interest by analyzing traditionally and with augmented reality. The company is known for its ‘fast fashion’ that delivers retail products that come newly into the market. They get ideas from wherever they can to get a balance between trend and future styles. Its retail inventory is dependant mainly on the design and production outsourcing.

 

Its strength is its ability to provide products at an affordable price which is the result from good supplier relationship and its minimal lead time. It manufactures 4/5 th of its retail inventory as advance and remaining as the trend sets. Another major characteristic is its efficient partnership. Without having any own factories, it accesses over 700 partnership companies in 20 countries.

It has 30 office to oversight partners for upcoming trends and to maintain good contact with its supplier in order to check for quality and pricing without breaking any code of conduct of the company.