Supply Chain Optimization Hugo Boss (A)

Table of Contents

Introduction & Defining the Problem…………………………………………………………………………… 3

Alternative 1……………………………….....……………………………………………………………………3

Alternative 2…………………………….…………………………………………………………………………3

Alternative 3……………………….………………………………………………………………………… .....4

Sugested Execution Plan………..........…………………………………………………………………................4

Introduction & Defining the Problem
Hugo boss, known for it high-end fashion apparel and accessories worldwide, has recognized that in order to keep up with its tough competitors such as Giorgio Armani, Prada and Tommy Hilfiger its needs to put in place an active and efficient supply chain. However, the brand does not want to bargain on its brand’s responsiveness to customer orders by minimizing costs.
Hugo Boss, because of the product range offers the matter discussed in the case with distinctive customer requirements, and some of which should be Never out of Stock (NOS). When purchasing fashion clothing, customers do not usually spend time in the purchase decision. Although, Hugo Boss sustains approximately 97% product availability of Never out of Stock throughout the year, it desires to accomplish a 100% as the target market may shift to alternate products or all together change to a competitor in case a product is not in stock. The problem that Hugo Boss now faces is which products have to be put in the optimization stage, bearing in mind the pros and cons for all the products available.

Alternative 1
The first alternative that the division director and the head of operations and procurement face is about applying the optimization strategy only on one area of their business. This alternative has both its pros and cons. Firstly, the benefit of such an approach would be that the body wear and hosiery wear division have already been run through a successful