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Fast Fashion Case Study από raimund.hudak

Relevance and need

ανάρτηση από raimund.hudak στην κατηγορία: Setting the research focus
What do we want to study, what is the problem?
The efficiency in the Fast Fashion industry is achieved through the retailers' understanding of the target market's wants, which is a high fashion looking garment at a price at the lower end of the clothing sector. 
Primarily, the concept of category management has been used to align the retail buyer and the manufacturer in a more collaborative relationship. Category management as a key element of the Supply Chain Management is defined as "the strategic management of product groups through trade partnerships, which aims to maximize sales and profits by satisfying customer needs".
This collaboration occurs as many companies' resources are pooled to further develop more sophisticated and efficient supply chain models to increase the market's total profit. 
The fast fashion market utilizes this by uniting with foreign manufacturers to keep prices at a minimum.
 
Supply chain management is often taken for granted in the business world. Regardless of industry, the supply chain is the backbone of any company. It begins with procuring the materials or services needed to create the end product and continues until the finished goods are in the customer's hands. This process typically involves a range of decisions and transactions between several distinct entities.
 
The supply chain begins with acquiring the goods or materials needed to satisfy the end product. Businesses must choose vendors, freight carriers, and possibly warehouse solutions. Inventory storage and the handling of goods-in-process are part of supply chain management as well. Marketing and distributing the product to the consumer wraps up the process.
The supply chain continuum is the core business model in the fast fashion industry.
 
 

    Research focus

    ανάρτηση από raimund.hudak στην κατηγορία: Setting the research focus
    What is the topic in the current Fast Fashion industry analyses we need to address?
    The market has developed from a product-driven concept based on a manufacturing model referred to as "quick response" developed in the U.S. in the 1980s and moved to a market-based model of "fast fashion" in the late 1990s and first part of the 21st century. 
    Zara has been at the forefront of this fashion retail revolution and their brand has almost become synonymous with the term, but there were other retailers who worked with the concept before the label was applied, such as Benetton and H&M.
     
    Supply chains are central to the creation of fast fashion. Supply chain systems are designed to add value and reduce cost in the process of moving goods from design concept to retail stores and finally through to consumption.
    Efficient supply chains are critical to delivering the retail customer promise of fast fashion. The selection of a merchandising vendor is a key part in the process. Inefficiency primarily occurs when suppliers can't respond quickly enough, and clothing ends up bottlenecked and in back stock.
    Two kinds of supply chains exist, agile and lean. In an agile supply chain the principal characteristics include the sharing of information and technology.The collaboration results in the reduction in the amount of stock in the megastores. A lean supply chain is characterized as the correct appropriation of the commodity for the product.
    The combination of the two supply chains is called "leagile"
     

      Context

      ανάρτηση από raimund.hudak στην κατηγορία: Setting the research focus
      What is the context we need to address?
      Three crucial differentiating model factors exist within fast fashion consumption: market timing, cost, and the buying cycle.
      Timing's objective is to create the shortest production time possible. The quick turnover has increased the demand for the number of seasons presented in the stores. This demand also increases shipping and restocking time periods. 
      Cost is still the consumer's primary buying decision. Costs are largely reduced by taking advantage of lower prices in markets in developing countries.
      The buying cycle is the final factor that affects the consumer. Traditionally, fashion buying cycles are based around long term forecasts that occur one year to six months before the season. Yet, in the fast fashion market the quick response philosophy can result in higher forecast accuracy because the time period is significantly shortened. A higher sell-through for the goods produced is also a result of the shortened production period.
       

        Research question

        ανάρτηση από raimund.hudak στην κατηγορία: Setting the research focus
        What is the research question?
        Ever since the "fast fashion" model emerged two decades ago, supply chains have become a key driver of success for apparel companies. Today, they are more strategically important than ever before, due to the added pressures brought about by several trends.
        What is the supply chain management strategy of H&M, Zara and Benetton? Students will analyze the differences and describe pros and cons of the different SCM organisations.
         
        In the face of these trends, leading fashion retailers are building competitive advantage by redesigning and adapting their supply chains to best meet their individual strategies. This approach delivers - among other benefits - significantly reduced production costs by cutting development, manufacturing, and logistics costs. It also reduces the amount of time it takes a company to move from concept development to in-store placement. What functions are embedded in the fast fashion SCM of ZARA, H&M and Benetton?
         
        A BCG analysis has found that the best-designed supply chains share three common characteristics:
          • Fast. They demonstrate particular speed in fulfilling customer orders, adapting to change, and realizing results.
          • Flexible. They create efficient processes that enable their clients to boost flexibility in the end-to-end supply chain.
          • Lean. They emphasize effective, low-cost operations.
        Students will evaluate how these common characteristics are applied by the market leaders.
         
         

          H&M's type of integration (Vertical)

          ανάρτηση από eduardo.rodriguez στην κατηγορία: Setting the research focus
          Hello colleagues!

          This is a one minute long video showing H&M's vertical integration; the reason for its speed and competitive advantage.


          https://www.youtube.com/watch?v=-1mEPGYs-cg 
           
           

            Literature

            ανάρτηση από raimund.hudak στην κατηγορία: Preparation
            Identify key literature on the topic
             

              Theoretical framework

              ανάρτηση από raimund.hudak στην κατηγορία: Preparation
              Elaborate on the role of theory, theoretical framework, related models and methods.
              Differentiation strategies in the fashion industry
              http://www.diva-portal.org/smash/get/diva2:427555/FULLTEXT02.pdf
               
              AGILITY IN INTERNATIONAL FAST FASHION RETAILING
              https://www.doria.fi/bitstream/handle/10024/91509/415698.pdf?sequence
               
              Fast Fashion: Business Model Overview and Research Opportunities
              http://webprofesores.iese.edu/valbeniz/fastfashionchapter.pdf
               
               

                Research approach

                ανάρτηση από raimund.hudak στην κατηγορία: Preparation
                Define your research approach, consider validity, reliability, sampling etc.
                 

                  Prepare data and research material

                  ανάρτηση από raimund.hudak στην κατηγορία: Data Collection
                  Define and prepare your research material and instruments, e.g. case study material and web reserach topics etc.
                  BCG analyses: Rethinking the Fashion Supply Chain    
                  .  Fast, Flexible, and Lean      
                  https://www.bcgperspectives.com/content/articles/retail_supply_chain_management_fast_flexible_lean_rethinking_fashion_supply_chain/ 
                   
                  Zara's fast fashion edge - Bloomberg Report
                  http://www.bloomberg.com/bw/articles/2013-11-14/2014-outlook-zaras-fashion-supply-chain-edge
                   
                  Sustainable Fashion Supply Chain: Lessons from H&M
                  Article:  http://idea-space.eu:19001/up/a29450dbbdf97bb9c2edc8ace6a2b06e.pdf 
                   
                  Another way to understand the various phases of supply chain management and how certain points influence others is to look at the 3 levels of SCM decision-making a bit closer.
                  Strategic Planning
                  Every effective supply chain strategy begins with solid long-term decision-making. The strategy level lays the groundwork for the entire supply chain process, from beginning to end, and is an essential part of supply chain management. Strategy level supply chain decisions are usually the first step of developing a good process.
                  Issues addressed at this level include:
                  • Choosing the site and purpose of business facilities
                  • Creating a network of reliable suppliers, transporters, and logistics handlers
                  • Long-term improvements and innovations to meet client demands
                  • Inventory and product management throughout its life cycle
                  • IT programs and systems to make the process more effective
                  Tactical Management
                  Businesses make short-term decisions involving the supply chain at the tactical level. At the strategy level, general planning begins, but processes are actually defined at the tactical level. Tactical decisions play a big role in controlling costs and minimizing risks. At this level, the focus is on customer demands and achieving the best end value.
                  Common concerns include:
                  • Procurement contracts for necessary materials and services
                  • Production schedules and guidelines to meet quality, safety, and quantity standards
                  • Transportation and warehousing solutions, including outsourcing and third-party options
                  • Inventory logistics, including storage and end-product distribution
                  • Adopting best practices in comparison to competitors
                  The Operational Level
                  The operational level of supply chain management is the most obvious. These are the day-to-day processes, decision-making, and planning that take place to keep the supply chain active. The mistake that many companies make is to jump straight into operational management without focusing on the strategy and tactical levels. Effective operational level processes are the result of strong strategical and tactical planning.
                  Some aspects of operational level management are:
                  • Daily and weekly forecasting to figure out and satisfy demand
                  • Production operations, including scheduling and detailed management of goods-in-process
                  • Monitoring logistics activity for contract and order fulfillment
                  • Settling damages or losses with suppliers, vendors, and clients
                  • Managing incoming and outgoing materials and products, as well as on-hand inventories
                  The most effective supply chain strategies are the result of a holistic management approach. When all 3 levels of supply chain management are given proper attention, every member of the supply chain benefits.
                   

                    Prepare data

                    ανάρτηση από raimund.hudak στην κατηγορία: Data Analysis
                    Prepare the data and distribute roles for data analysis
                    Hello colleagues!
                     
                    This is a one minute long video showing H&M's vertical integration; the reason for its speed and competitive advantage.
                    https://www.youtube.com/watch?v=-1mEPGYs-cg 
                     
                     
                    Another video demonstrating how RFID thechnology is adopted in the distribution process and in stores of INDITEX GROUP(ZARA).
                    https://www.youtube.com/watch?v=XQAQ1Gvd9yY
                     
                     

                      Analyze, elaborate, iterate

                      ανάρτηση από raimund.hudak στην κατηγορία: Data Analysis
                      Analyse and elaborate on the findings, iterate and reach the key results of your research effort
                       

                        Distribute tasks and roles

                        ανάρτηση από raimund.hudak στην κατηγορία: Article writing
                        Distribute tasks and roles for the term paper writing and presentation
                        H&M group :
                         
                        As discussed, the way we distributed our tasks and roles are as follows:
                                
                            1. Introduction / History (Eduardo) - Fast facts
                            
                            2.  From Idea to Store / How they work (Nikhila) - What is the supply chain management strategy of H&M ? 
                            
                            3.  H&M's approach on SCM (Levels of SCM usage) (Golara) - What functions are embedded in the fast fashion SCM of  H&M ?Strategic Planning,Tactical Management & Operational Level
                         
                             4. H&M's SCM based on BCG analysis (Nikhila)- Evaluate how fast,agile and lean are applied by the market leaders.
                            
                             5. Differentiating factors compared to competition  (Golara) - Analyze the differences and describe pros and cons of the different SCM organisations - market timing, cost, and the buying cycle factors
                            
                            6.  Conclusion (Eduardo) -  swot, sales reports, Key results of the research effort and recommendations if any
                         

                          Write and iterate term paper

                          ανάρτηση από raimund.hudak στην κατηγορία: Article writing
                          Write the publication and iterate towards a harmonized term paper.
                           

                            Experiences and feedback

                            ανάρτηση από raimund.hudak στην κατηγορία: Feedback and next steps
                            Stakeholders can provide their experiences working with the OE platform HERE.
                             

                              Submit results HERE

                              ανάρτηση από raimund.hudak στην κατηγορία: Feedback and next steps
                              Submit your results and presentations HERE!!
                              Please upload your case study material and results here:
                              Benetton:
                                   The following PowerPoint Presentation is the result of a student research work at the BA Eisenach in 2014. The case study was part of the syllabus and examination of the course.
                                http://idea-space.eu:19001/up/85c3d3994823760b03186abb7777d96c.pptx 
                                
                               The following PowerPoint Presentation is the result of a student research work at the DHBW Heilbronn in 2015. The case study was part of the syllabus and examination of the course.
                                http://idea-space.eu:19001/up/2d13be1b82eb749bf44ab554df785613.pptx 
                                
                               The following link shows the PowerPoint presentation of the student research work at the Berufsakademie Eisenach in 2015. The case study was part of the syllabus and examination
                                http://idea-space.eu:19001/up/069aee1e771a3a60eb68b1ac7ce9efcb.pptx 
                                
                                The following link shows the PowerPoint presentation of the student research work at the Hochschule Pforzheim in 2015. The case study was part of the syllabus and examination
                                 http://idea-space.eu:19001/up/ec4e5a00664b586c5d41c84d4f98a744.pptx  
                                 
                                 Zara:
                              The following link shows the PowerPoint presentation of the student research work at the MBA class at the university Pforzheim in 2013. The case study was part of the syllabus and examination.
                                http://idea-space.eu:19001/up/59df13bebc7089598d143514227db9b6.ppt 
                                
                               The following link shows the PowerPoint presentation of the student research work at the MBA class at the university Pforzheim in 2014. The case study was part of the syllabus and examination.
                                http://idea-space.eu:19001/up/3e2bc16b6b9c80f60c52db06b03ebaa3.pptx 
                                
                              The following link shows the PowerPoint presentation of the student research work at the MBA class at the university Pforzheim in 2015. The case study was part of the syllabus and examination.
                                http://idea-space.eu:19001/up/21732312dd9f5f2f56e2d040f63053f6.pptx 
                                
                               The following link shows the PowerPoint presentation of the student research work at the DHBW Heilbronn in 2015. The case study was part of the syllabus and examination
                              1. Word Online Document - 2 pages Summary
                                1. http://1drv.ms/1TnwcsE
                              2. Google Drive Document - Complete Report
                                1. https://drive.google.com/open?id=0Bzu7H7Ot9kk8fkFuU3g1Nkg0Z3pBMDRkMFZqWnEwdFZveE01cFlTOWRZaU44U2ZFcjFwLXM&authuser=0
                              3. Prezi Presentation
                                1. http://prezi.com/vpn-f8amxkq1/?utm_campaign=share&utm_medium=copy&rc=ex0share
                                
                               The following link shows the PowerPoint presentation of the student research work at the Berufsakademie Eisenach in 2015. The case study was part of the syllabus and examination
                                http://idea-space.eu:19001/up/e9f933c3d8d08352417760d9a89f8c54.pptx 
                                
                              H&M:
                                  
                                  The following link shows the PowerPoint presentation of the student research work at the MBA class at the University of Applied Science in Pforzheim in 2015. The case study was part of the syllabus and examination.
                                   http://idea-space.eu:19001/up/268733e994d54644cbb3c54eec8882f8.pptx 
                                  
                                  The following link shows the PowerPoint presentation of the student research work at the MBA class at the university of applied science in Pforzheim in 2014. The case study was part of the syllabus and examination.
                                http://idea-space.eu:19001/up/0225e301e27534479cc74a1e6d6857b4.pptx 
                                
                                The following link shows the PowerPoint presentation of the student research work at the IBA class at the BA Eisenach in 2014. The case study was part of the syllabus and examination.
                                 http://idea-space.eu:19001/up/3bcc7a5d85f4c707009c2cc509f8e5cd.pptx 
                                
                               The following link shows the PowerPoint presentation of the student research work at the Berufsakademie Eisenach in 2015. The case study was part of the syllabus and examination
                                http://idea-space.eu:19001/up/0410415e0cac316030d2532488d74b02.pptx