Supply Chain Management of Guess: Operations Performance Objectives and Global Chain Supply

This report discusses the supply chain management of Guess, including identification of supply chain members, operations performance objectives, and comparison with Gucci. Guess T-shirt for men is used as an example to evaluate the cost advantage and performance objectives of the company. The report also analyzes the global chain supply of the organization through supply chain members.

Guess T - shirt Men
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Table of contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Company information and its product.....................................................................................3
2. Operations performance objectives.........................................................................................4
3. Global chain supply of the organization through supply chain members...............................5
4.Analyse the operations performance objective and compare with one competitor..................7
Recommendations........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Supply chain management refers to a process of handling entire production flow of goods
and services and this process starts from bring raw material into organization and delivering final
products to the consumers of the product. Supply chain involves several members in complete
process (Wieland, 2021).
This report will discuss about supply chain management of GUESS and will involve
identification of supply chain members in both ways upstream and downstream. In addition to
this operations performance objectives of GUESS will also be discussed. Comparison of GUESS
will also be done with Gucci to understand effectiveness of the organization. Gucci is included in
one of the top competitors of the GUESS brand. GUESS is a clothing brand and retailer of
America. It was founded in 1981 by Georges Marciano, Maurice Marciano, Paul Marciano, and
Armand Marciano and is headquartered at Los Angeles, California, U.S. Offerings of the
company involves clothing accessories and employs 14,701. Brands of GUESS involve
MARCIANO, GUESS Kids, World of GUESS and GUESS Journal (Rosa, 2018). This was
started in 1981 as a book of styles and now it offers clothing for men, women, Guess markets
other fashion accessories like watches, jewelry, bags, perfumes and shoes.
MAIN BODY
1. Company information and its product
Guess is an American clothing retailer and brand which provides the customers the clothes
and many other accessories according to the needs and requirements. Guess is the brand in which
there are various things which company provides to the customers which also includes fashion
accessories such as perfumes, shoes, bags, jewellery, watches etc (Pizzi and et.al., 2019). The
main aim of company is to provide all essential elements which fulfil the needs and demands of
customers on large scale in the market segment. Along with this, main aim is to also analyze the
marketing trends which help the company in evaluating the performance effectively.
Guess T – shirt is the product which enables the male customers to buy it as per their
convenience which includes the price, colour, size and various other elements which are
included. Guess provides variety of t – shirt material in different sizes and colours according to
the needs and preferences of the customers (Dwi and et.al., 2020). The main thing which is
considered is how the customers in the market buy the product. Guess t – shirt in men category
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provides detailed specifications about the product and through this the large area of men section
in the market is taken over through the brand Guess effectively.
2. Operations performance objectives
Performance Objective – Performance objective refers to enable the organization and to
strategically align the daily operations which majorly includes the objectives which are related to
cost (Taouab and et.al., 2019). Therefore, cost advantage necessities prioritize high ratio of cost
advantage which is on high scale. Performance objectives also help in analyzing the key essential
areas of performance of Guess which helps the company to fulfil and achieve certain objectives
on large scale within the business structure.
Guess Approach to Cost – Cost is the factor which is analyzed on large scale by the
company and which also helps in evaluating the financial scales of the company. Guess is
following the premium pricing policy in which the products which are being offered to the
customers are superior in quality and this targets the customers on large scale which help the
company in taking and initiating the brand and its scales of how the financial operations are
being done (Dabija and et.al., 2017). Guess operates and focuses on premium brand tag which is
the main aim of the company to analyze the scales of the financial operations which the company
is incurring and following. By following this pricing model, the performance objectives not only
reduces the cost performance but also helps the company in reducing the cost for the operational
excellence which the company is processing towards the brand success and to initiate different
ways through which changes are being facilitated for the performance measurement basis. While
framing performance objectives for the operational aspect, the quality and error – free products
are promoted which helps Guess in reducing the likelihood of product returns, recalls etc. within
the supply chain.
As guess follows the premium pricing policy, the main aim of the company is that it
follows the performance objective scales which helps the company in formulating the basis of
how the cost is analyzed and on what basis Guess is preparing for the objectives and framing it
on the basis of the product which is to be sold to the customers in the market. Guess T- shirt is
the product which the company provides to the male segment of the society in the market and
this initiates the process in which the certain objectives which are framed are set up for the
purpose of effective and efficient pricing and costing the financial scales which is based by
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framing the performance objectives under which cost and financial aspect of the company is
important to be evaluated. Premium pricing policy allows the customer segmentation for the
Guess T – shirt which the company is producing. This also helps in generating sales volume and
greater revenues are then being generated on large scale in the business environment in which
the Guess is operating successfully and efficiently (Ren and et.al., 2021).
By evaluating the customer segmentation, market positioning is also evaluated and
analyze on the scale to enhance the cost and reduce wherever required. This can be done by
achieving the operational excellence of market for all the dimensions. Buying the products and
services of Guess reduces the cost and this helps the company in making the estimations which
are evaluated effectively and efficiently on large scale. Cost is the basis which initiates the
pricing for the Guess T – shirt and this comprises of the operational excellence along with the
performance objectives which are included under it (Feng and et.al., 2019). The price of the
Guess T – shirt is affordable for the customers which creates large sales volume and earns
greater revenues on large scale. The performance objectives of the company also helps in
analyzing what is the major aspect of knowing the scales through which the financial basis of the
company for the products and services in the market is analyzed in an effective and efficient
manner. Thus, cost for the performance objective analysis will help the Guess in analyzing what
are the various characteristics and the essential elements of the company on large scale. The
operation segment of the company comprises of the Guess T – shirt which helps the company in
analyzing the major things which are based on the operations and the cost. Guess T – shirt will
also help the company in analyzing how to evaluate financial scales and what is the base of
approval of the cost structure in the company by how it frames on scale of operating and
performing more significantly and in an appropriate manner. Also, premium price policy helped
in analyzing the cost structure of Guess Company on large basis.
3. Global chain supply of the organization through supply chain members
Global chain supply is the process in which there is distribution of services and products
throughout the trans – national companies global network so that the waste can be minimized
and profits can be maximized on global level. Global chain supplies contains network which is
connected and linked with various countries for the purpose of supplying and outsourcing the
products and goods on large scale (Martinelli and et.al., 2019). Global chain supply is the major
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cause through which the products and services are taken into view and concern that they are the
part of the globe and then they are promoted and branded across different nations and countries.
And in this, the major convenience has been increased for the Guess T- shirt to be ported across
cultures. There are two types of supply chain members which are explained as below –
Upstream (Suppliers) – Guess sources its products and services through various suppliers and
have established long – term relationships with them for the sake of growing business in an
enhanced manner. The company seeks to achieve and fulfil the demands and needs of the
customers by efficient and effective delivering the products and services to them and this is done
by combining the local and global sourcing (LeMay and et.al., 2017). The products and
especially in this case Guess T – shirt is the product which is designed and packed for the
sourcing of it to the vendor and then the vendor delivers it to the customers. For maintaining
proper supply chain management at global level, Guess has created the strategy for deploying the
global sourcing and in this product development of Guess T – shirt helped the company in
various ways. Also this has also encouraged worldwide growth in the e – commerce and various
other channels. The sourcing of the global chain supply has helped the company in sourcing and
vendor supply chain where the products are based on the category of what is the processing and
this has helped in making the vendor base strong which has also helped in analyzing various
other ways of how outsourcing in the global supply chain has made the process and the
procedure more effective and efficient (De Marchi and et.al., 2019). The company believes in
outsourcing the products through the balanced supply chain by initiating partnerships with
vendors into the main market. This also helps in providing competitive advantage where there is
flexibility and which helps Guess in knowing the demand and needs of the customers in the
market and on large scale. The sourcing strategy helps the company to leverage the cost and this
helps it in creating process easy with company on large scale. Emerging fashion trends are also
evaluated significantly.
Downstream (Intermediaries) – Intermediaries are the individuals that undertake the role of
linkage between two parties and through this the main thing which is seen is the effectiveness
and the efficient which is being created in the supply chain through the efforts which links the
market and the customers on large scale so that the products of Guess like the T – shirt is
promoted and branded in the market on significant scale (Thorlakson and et.al., 2018). Guess
uses the intermediary channels for the products to be delivered for the process of how the
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products are to be placed in the market and to be distributed with the customers on large basis.
The products and services are taken in accordance with providing the market and customers
products and services which they need for the reason of leisure and in this case it is Guess T –
shirt which is distributed through the channel of how the things are taken into consideration for
long as well as short scale basis through which the products and services are made available.
Guess is working on the T – shirt in male category which is being passed through the channel of
how company is working and making the process to reach the customers and the market on
effective and efficient basis (Marques, 2019). Thus, the main focus of the company is that it acts
as the intermediary between market and the customers as the products and the services are taken
in accordance with scale of providing both the market and the customers their satisfaction and
delivering products as per their need and demands. Along with this, there are various roles that
intermediaries play which are the customers and the market. This helps company in identifying
what are key roles which helps the Guess in knowing working of Global supply chain
management and its procedures.
4. Analyse the operations performance objective and compare with one competitor
The operations performance objective which was taken for the consideration of Guess T –
shirt product to be sold in the market by analyzing the key market and the target customers is
done on the basis of Cost (Dominique-Ferreira, 2018). And through the cost factor the
performance of the company was evaluated and this made the whole process of how the Guess
T- shirt which the company is producing for the male category in the market and scaling the
customers on that basis. The operations performance objective has helped the company in
knowing the key sources and the ways through which the effective and efficient process are
followed and through this the main thing which is the scale of how the practical aspects of cost
advantage variable and available and through that the products and services of the Guess brand
will be promoted and how the brand will create its measure of being on effective scales was
analyzed (Tomic and et.al., 2018). As Guess operates on the premium price policy for the cost
analysis the products and services which are made available for the customers in the market are
based on the low pricing and low cost materials. Through this, the main thing which is
considered in this is the pricing policy which is formed on the scale of providing the products
and services which the Guess brand is dealing in like the T – shirt to be more on the scale of
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knowing what is to be done on vast manner. The company takes concern of the quality products
and services which are made available for the customers such as the male category which is the
T- shirt the company is manufacturing and making to make it available as per the needs and
demand of customers to be fulfilled effectively and in significant manner possible. And in this,
certain objectives are framed in which customers are taking considerations towards the scale of
how products and services are produced on large basis. The cost operational aspect which Guess
focuses on is the measure in which quality and quantity that too in low scale is analyzed. This
helps in making and referring to base where all the marketing and the customer essential
elements are considered.
The major competitor of Guess is Gucci in the market and in the business environment.
Gucci has been the main competitor of Guess in the market on the scale of products and services
which produces the efficient and effective scale of pattern of how the company is initiating and
taking the concern of competition in the market (Soboleva and et.al., 2018). The products and
services of Guess and Gucci have been on the on the scale that it promotes and brands the
products on the scale that there is very less difference between Guess and Gucci in the market
and this has made the scale of how the products and services will be delivering the customers as
per their needs and demands on large scale. Due to very high competition in the market between
Guess and Gucci, there was intense battle which was created among the two brands and none of
the brands was settling in less therefore, the companies took the charge of the competition and
then covered the scale of the distance which initiated the scale of what can be done on the
effective and efficient basis so that the competition is ended and the products and services of
both the companies are not affected to the customers in the market structure or the business
environment in which they both are operating (Ruotsalainen, 2020). The main thing of Gucci
being the main competitor of Guess brand was that both the companies are in the same retail
industry and the products and services are same which they are providing to the customers, thus
this has helped the company in making the base of how effective and efficient the competition
brings the products in the market and how much successful they both create their value among
customers. Thus, the competition turned into legal battle in which the functioning and process of
both the brands were affected and this initiates a very diverse ways through which perspectives
of customers were also changed towards the products and services which were made available to
them (Papazov and et.al., 2019). It is since now that the battle between both Guess and Gucci
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brand on legal terms has come to an end and has created peace with each other on business
terms.
Recommendations
Environmentally and socially suitable supply chain practices
Supply chain management is very essential element of overall organizational practices
and this is why it is very important that supply chain management is performed efficiently. For
GUESS it is recommended that company focuses on sustainable supply chain management and a
team of reliable network of suppliers should be developed. Gucci is one of the organization and
also competitor of GUESS that relies on trusted suppliers. GUESS is also recommended to work
on environmentally and socially best practices. This is very important that GUESS works on
environmentally and socially suitable supply chain practices. This involves that means of supply
chain are environment friendly and route of supply chain is also small which causes least
possible negative impact on environment. In addition to this, practices of supply chain also needs
to in a socially acceptable. Environmentally and socially suitable supply chain practices will also
provide competitive advantage to organization (Craighead and et.al., 2020).
Data Analytics
This is another recommendation for GUESS according to which company needs to
improve its supply chain management practices with help of data. Big data analytics improves
supply chain management according to which manager derives knowledge and insights from
both structured and unstructured data that comes from variety of sources. Machine learning
algorithms analyses data and through it powers solutions by predicting machine malfunctioning
and transportation delays during supply chain management and this helps managers cost
effective decisions in both up and down supply chain. It is recommended that GUESS should
adopt and apply this strategy and work with use of big data. Big data is being utilized by all
functions of the organization and this is why application of big data by GUESS can contribute in
enhancing overall supply chain practices of the organization (Asamoah and et.al., 2021). Time
saving and big data analytics are important benefits of using big data analytics.
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CONCLUSION
Thus, it is concluded from the above report that Guess’s information was provided for the
general reference to be collected effectively and efficiently on small scale. Further, operation
performance objectives were analyzed of the company which included the performance objective
in brief and Guess’s approach to cost was also evaluated. Along with this, Global chain supply
and member of global chain supply such as the suppliers and the intermediaries created the brief
towards the Guess Company. And finally, operation performance objective and comparison of
Guess and Gucci was being analyzed and evaluated by providing the brief of the market
situations and between both the companies.
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REFERENCES
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