...The current issue and full text archive of this journal is available at www.emeraldinsight.com/0957-4093.htm IJLM 22,3 Retail supply chain management: key priorities and practices Wesley S. Randall Department of Marketing and Logistics, College of Business, University of North Texas, Denton, Texas, USA 390 Brian J. Gibson and C. Clifford Defee Department of Supply Chain Management, College of Business, Auburn University, Auburn, Alabama, USA, and Brent D. Williams Department of Supply Chain Management, Sam M. Walton College of Business, University of Arkansas, Fayetteville, Arkansas, USA Abstract Purpose – The purpose of this paper is to investigate the unique supply chain strategies employed by retailers. Design/methodology/approach – A mixed methods approach was employed involving analysis of depth interviews with 27 retail supply chain executives combined with a follow-up survey capturing over 200 responses. Findings – In light of uncertain economic conditions, retailers appear to be developing more agile/responsive supply chain management (SCM) strategies. Additionally, retailers are putting greater emphasis on maintaining a balance of cost versus service than the cost-centered focus found in a prior study. Research limitations/implications – This study focused on US retailers and therefore results should be cautiously extended to the retailing environment in other countries. Practical implications – Retailing is not a “one size fits all” business, and...
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...Inditex, a Spanish conglomerate operating six distinct retail chains across the globe is struggling with the future direction of its largest subsidiary, Zara, which contributes 76% of annual revenues and 85% of earnings before interest and taxes. Zara’s success has been due in large part to its implementation and continuous development of its quick response system which provides a competitive advantage by increasing supply chain flexibility and the speed with which it can respond to market forces. In order to determine Zara’s future direction, Inditex needs to understand the financial viability of the quick response system, as well as the design of the system and its underlying processes. Upon conducting a thorough analysis of this critical system, Inditex should evaluate the strengths, weaknesses, opportunities, and threats associated with the quick response system. Considering the significance of Zara’s contributions to Inditex, it is critical that measures are taken to ensure Zara sustains its competitive advantage over the long-term. Financial Analysis A detailed financial analysis reveals that Zara enjoys a good measure of operating efficiency relative to its three major competitors: The Gap, Benetton, and H&M. While all of these companies share the common characteristic of being retailers in the global apparel industry, each has a unique value proposition and has distinct operational methods. The ensuing discussion attempts to highlight Zara’s efficiencies...
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...Executive Summary 7-Eleven is a famous brand and provide more than 40 thousands convenience stores for the customers in the worldwide and the most important factor is successful performance in Supply Chain Management (SCM). However, 7-Eleven still has been facing a lot of problems which should be sorting them out in order to get more business opportunities. This report focuses on the supply chain management of 7-Eleven and suggests the improvement for potential problem of its whole supply chain system. At first, will introduce the company’s background by collecting data about its current situation and identifies the issues which are supported by SWOT analysis. And through the GAP analyses of the business the key existent issues faced by 7-Eleven. According to those above, the report will finalize the recommendations and implementation methods in order to improve the business and set a benchmark for future development. In the end, although 7-Eleven’s trend is led more convenience stores to satisfy the need of customers, but it still needs to improve its supply chain and operation mode to Commercial global optimization to continue keeping its leading position in the retail market. 7-Eleven Background 7-Eleven is the largest convenience store chain in the world, which has approximately 47,500 stores in 16 countries. The first Australian store was opened in 1977 owned by the Withers/Barlow family which has the license to operate and franchise 7-Eleven stores in Australia from...
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...Methodology iv. Scope & Limitations 2. Economy Industry Analysis 3. Company Analysis 4. Project Specific Analysis 5. Conclusion & Recommendation 6. Contribution 7. Learning from SIP 8. References 9. Appendix Pg .No(s) 4 4 5 5 6 7-12 13-20 21-45 46 47 48 49 50-60 2 ACKNOWLEDGEMENT I would like to thank Mr. Rakesh Maheshwari, The Marketing Head East of Pantaloons Concept to give me an opportunity to work with Pantaloons and to learn through practice. He has provided me with all the help I required and also given me opportunity to work in Pantaloons Fresh Face Hunt. I wound also like to thank Sohini Chankroborty , Marketing Executive of Pantaloons Camac Street store & Amit Sadhwani , Marketing Executive of Pantaloons of South city Store to give me the freedom to organise and excute activities and providing me constant guidance. I would like to thank Mr . Jigeesh Nasina to provide me with his constant guidance throughout my Summer Internship Project and clarify all my doubts. I would also like to thank IBS, Hyderabad to have given me the opportunity for this Industry Exposure. Lastly, I would like to thank my family without whose constant support I could not have accomplished anything in life. 3 EXECUTIVE SUMMARY Pantaloons retail is the flagship company of Future Group, India‟s retail pioneer catering to the entire Indian consumption space. Through several retail formats they connect to a diverse and passionate community...
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...Zara vs. GAP Inc. American GAP and Spanish ZARA Abstract We are going to compare two super giant clothing retail companies of the world in this thesis. These two giants are dominating apparel retailing market nowadays with their simple and attractive with high level quality of clothes. We will try two analyze working culture, business performance and history, competition and geographic dominance of two clothing retailer giants. Years before two small stores opened and they succeed to dominate market with their modern style and different business doing. • Zara has already changed the fashion industry. - Business Insider Zara is most #58 biggest brand in the world according to Forbes. • America's largest apparel retailer is embarking on a turnaround plan to recapture cool customers. - Business Insider Gap inc is #745 Gap biggest brand in the worlds according to Forbes Zara shops followed swiftly in New York in 1989, Paris in 1990. Now the group has nearly 3,900 stores in 70 countries around the world. Gap has 3,100 stores globally and employs about 150,000 people. A Gap spokeswoman declined to comment on the loss of the top spot to Zara. Let's check analyses of these two giants with full provided information. Firstly take brief tour to their history and about founders. Brief History of Brands Fashion giant, Zara, forms part of the retail group ‘Grupo Inditex’ which Mintel (2007) acknowledges as one of the “largest, fastest growing...
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...SHYAMKUMAR PALAYIL SASEENDRAN VINU SUNILKUMAR Introduction This report provides an overview of the role of BPM and value chain. The report will highlights the problems the Cullen creative cooking Pty Ltd is facing and will priorities them on the bases of most urgent. It will include the modified organizational structure of the company, along with the as-is and to-be diagram. It also provides an insight to the project scoping diagram and will provide possible solution for the company. Based upon the report their will be some recommendation for the company in order to improve their business Table of Contents 1. Business process management (BPM) and strategy 4 2. Problem Analysis 5 Fig 2.1 Project scoping diagram 6 3. Proposed solution 6 Fig 3.1: As is diagram 7 3.2 To be diagram 8 4. Solution considerations: 9 Fig 4.1 modified organization chart 10 4.2 What changes to be made? 10 4.3 How to do it 11 4.4 Common areas of cost 11 5. Recommendations 12 6. References 13 1. Business process management (BPM) and strategy BPM is a way to connect and integrate all the business processes in such a way so as to determine the additional performance improvement. While some might refer it to as an analysis of the value chain.(Singh 2012) All these will helps the Cullen creative cooking Pty Ltd to manage their problems and to achieve the goals .A company that adopts BPM gets...
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...Short Case Analysis of Gap Inc. in 2010: Is the Turnaround Strategy Working? Author of the article Annette Lohman of the California State University, Long Beach The Gap Inc. In 2010 Case Summary Case Summary This case study describes the business environment of the apparel market and how Gap Inc. tried in this highly competitive market environment to manage a turnaround in the time between 2000 and 2010. The U.S. clothing store sector accounted for approximately $156 billion in the year 2009 and had slightly declined compared to 2008 due to the worldwide recession. Average before-tax profits estimated by IBIS-World were around 3% in the year 2009. The level of globalization in the market is relatively low and made up by a large number of small and few major, domestically owned companies. The family clothing store industry is the most important sector, as it is responsible for more than half of the revenues in the U.S. clothing market. Concerning the gender woman clothes are most interesting, due to their will to spend more. Women clothing accounts for 50% of the market, followed by men and children with market shares of 37% and 13%. Hereby more than one third of the adult population has to be considered obese. According to price sensitivity 65% of the market is value-priced driven and targeted by family stores of companies such as Ross Stores or TJX Companies. They focus on still wanted brand names and discounts by delivering off-season styles. More emotional driven...
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...The role of ICT in Retail sector India is on the brink of becoming an economic power house ready to unleash its largely untapped potential for those who willing to take right steps forward. Over the last few years, retail has become one of the fastest growing sectors in the Indian economy. ICT has changed modern business practice, making collaborative supply chain management possible.The paper evaluates the role of ICT in the operations of retail organization. The purpose of this paper is to address the critical role-play of Information Technology and IT enabled Services (ITeS) in Retail sector, which is booming in India, and a lime-light into security concerns and other important areas such as system integration, a right business intelligence (BI) solution, and technology for sales & customer care, etc.Large and medium retail houses need to look at an efficient integration with external and internal functional participants (Suppliers to POS), thus need of smart and secured networking. People and training them is also an integral part of the total infrastructure management, therefore technology advancement is considered to be cost effective and just-in-time-update. Keywords: Store operations, Information technology in retail store ,Supply Chain Management (SCM), Customer Relationship Management (CRM),IT enabled services. Introduction: Retailing is a “technology-intensive industry. It is a well-known fact that the retail industry always works on razor thin margins and...
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...with an executive summary in order to explain the Situation of Marks & Spencer hence it follows an analysis of their predicament. Marks & Spencer was founded in 1894. In 1926 M&S is floated on the London stock exchange. They became more international in the year of 1973 with their first overseas store in Canada and in 1975 they build up stores in Paris and Brussel. In the year 1997 M&S profits exceeded £1billion. Finally Marks & Spencer became an international company, which spread through Europe, North America and Asia. The product portfolio of M&S comprises a whole range of clothing, footwear, gifts, house appliances, and food. As of the 1990s more competitors appear to the clothing market and M&S loses market shares. Competitors like Zara, The Gap or H&M were trend oriented, innovative and were able to sell their products at a very low price. In the autumn of 1998 British retailing descended into a sudden recession. In contrast to the first recession M&S did not come through unscathed. This recession due to more trouble in sales and profits reduced dramatically. Moreover M&S operated on the basis of two clothing collections per year. They need nine month ahead of the season in order to place their products to the market. According to the rivals The Gap, Zara or H&M, which had 14 season per year with stock changes every three weeks. M&S was not anymore in the position to supply their products at the right place and at the right time. Furthermore the M&S style contrasted badly...
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...proper processes designed for supply chain management in any organization. In most firms, supply chain management refers to the ways logistics are handled in the company. Supply chain management is nothing but management of logistics and the process of eliminating general inefficiencies in the company. It refers to the processes of how the different suppliers and the whole network thereof are managed. The overall aim of supply chain management is to produce effective and efficient operations. The value of supply chain management goes up all the even more in retail chain organizations. This is due to the fact that every retail chain organization works with a number of suppliers at any given point in time. All retail firms have to make a conscious effort to integrate the logistics, distribution activities with the suppliers, and the manufacturer’s overall efforts. This study attempts to go through and systematically review the comprehensive processes for supply chain management in any retail chain organization. Also, it tries to undermine how the current technology and innovation techniques can be leveraged to improve the supply chain management processes and to make them more consumer-centric and efficient. This study has used the example of Wal-Mart, the leading global retail giant. This is a perfect example used to illustrate how supply chain management processes should be handled in large retail set ups as Wal-Mart would be handling materials and supplies from hundreds of suppliers...
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...Synnott, who was the head children’s wear buyer in New Zealand. Although Pumpkin Patch was handled by other investors after two years, the brand expanded to a broader influence. Today Pumpkin Patch has its own market in several countries, such as New Zealand, Australia, the United Kingdom and United States. It is not easy for Pumpkin Patch to operate well in such areas, but the company still decides to look for new territories. So it should fully understand its position and create fitting strategic plans. Analysing the external environment The general environment Demographic----high Speaking of the clothing products, population immediate influences customers’ real and potential demands to the brand. In fact, demands always far exceed supply and products are sold out very early in such countries, especially in New Zealand. It can be noticed that the population between newborn and 14-year old are the major customers of its market. Economic----high In terms of each area’s economic, the consumption level should be mentioned. Taking the United States as an example, the whole cloth market earned US$172.8 billion in 2004 which occupied 22 percent of the total sale of global apparel. Because of the growth of each family’s income, the data would also increase year by year which presents a good vista to the cloth profession. Technology----high In order to adapt the market change, the enterprise should sum up the existing management frequently and seek for the new ways to satisfy...
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...A CONCEPTUAL VALUE CHAIN MODEL FOR ORIGIN ENERGY 13 Table of Contents EXECUTIVE SUMMARY _____________________________________________________________ c 1 Introduction __________________________________________________________________ 1 2 Background __________________________________________________________________ 2 2.1 Background of Origin Energy ___________________________________________________ 2 3 Literature Review________________________________________________________________ 3 3.1 Supply Chain Management _____________________________________________________ 3 3.2 Quality Improvement Models and Gap Analysis ____________________________________ 4 3.3 Lean and Six Sigma Technology ________________________________________________ 5 4 Discussion & Analysis ____________________________________________________________ 6 4.1 Supply Chain of Origin Energy _________________________________________________ 6 4.2 SWOT Analysis for Origin Energy _______________________________________________ 7 4.3 Supply Chain Operations Reference (SCOR) Model _________________________________ 9 4.4 Conceptual Improvement Model for Supply Chain Management ______________________ 12 4.4.1 Introduction ____________________________________________________________ 12 4.2.2 Assumptions: ___________________________________________________________ 13 4.3.3 Supply Chain Conceptual Improvement Model (SCCIM) _________________________ 13 4.2.4 Key Benefits of the model _________________________________________________...
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...Suppliers ……………………………………………………………………………………………11 Strategic Management & Board…………………………………………………………………13 Corporate Governance……………………………………………………………………………15 Board of Directors…………………………………………………………………………………17 Global Footwear Industry ………………………………………………………………………28 Family Clothing Stores …………………………………………………………………………30 Porter’s Five Forces………………………………………………………………………………33 Industry Overview…………………………………………………………………………………40 Organization Structure …………………………………………………………………………48 Financials …………………………………………………………………………………………49 Financial Ratios …………………………………………………………………………………58 Altman’s Z-Score …………………………………………………………………………………71 Tobin’s Q……………………………………………………………………………………………72 DuPont Analysis …………………………………………………………………………………73 SWOT Analysis ……………………………………………………………………………………77 Market Share ………………………………………………………………………………………80 Focal Points for Action …………………………………………………………………………83 TOWS Matrix………………………………………………………………………………………83 Boston Consulting Group Matrix ………………………………………………………………84 Rumelt’s Criteria …………………………………………………………………………………85 Decisions and Recommendations ………………………………………………………………86 Implementation……………………………………………………………………………………89 Bibliography ………………………………………………………………………………………91...
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...THE CASE OF ZARA: PLANNING AND STRATEGIC CONTROL Alexandra Iacob University of Huelva HUELVA, SPAIN 2015 Abstract Zara is a retail company belonging to the Spanish company Inditex Group. Currently, Zara has 1,808 stores in 86 countries. This paper will analyse Zara’s business model, based on innovation and flexibility, as well as logistics chain and the various tools used to recognize the continuous changes in fashion trends and turn them into a product marketable within a few weeks. Compared with the competition, Zara has three distinctions: vertical integration to achieve a faster turnaround time; rapid expansion; and use of the store as the main tool for promotion, with low spend on advertising. This company offered a product design and quality, low price. In addition, resources and competences have allowed develop a different business model, where all processes from product design, to manufacturing, distribution and sales are carried out within the same organization. Key words: Strategic Management, Strategy, External Environment, Michael Porter’s Generic Strategies, Vertical Integration, Balanced Scorecard, Globalization Culture Introduction Company Background Four letters that make up a fashion brand known around the world. Zara is a Spanish brand of clothing and accessories and the foundation of Inditex’s success as well as their first retail format. Inditex S.A. is a Spanish multinational group of textile manufacturing and distribution established in 1975 in A...
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...University of Salford - Manchester Salford Business School Procurement, Logistics and Supply Chain Management Course Leader: Prof. David Duffill Class # 1344: Operations and Information Management Assignment 2 - 2014 13th July 2014 Word Count: Presented by: @00401764 Abstract: The retail sector is characterized by an extremely competitive environment, with rapidly changing consumer needs and behavior. Retailers are the link between primary and secondary suppliers, final manufacturers/ assemblers and the consumer, that is the link between production and consumption. The performance of the retail sector is a good indicator of the performance in the overall economy. Traditional retail approach based on physical locations is fast evolving into a multi-channel approach in order to provide increased convenience to the final consumer whilst taking advantage of the convergence of information technology. This multi-channel approach is also putting pressure on retailers to re-look at integrating the back office operations to provide seamless services and experience to their customers. In order to address the details of task required for the assignment, the report is organized as follows; Part A: section 1) Applying a standard approach of Structured Systems Analysis and Design to understand the case of Heelz and determine the appropriate solution; section 2); future considerations for Heelz and applying Strategic Systems Integration Planning, Section 3) Conclude by...
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