Supply Chain Management Assignment - Fashion Industry
Added on 2020-10-05
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Supply Chain Management
ContentsINTRODUCTION...........................................................................................................................3Globalisation....................................................................................................................................3E-Commerce:...................................................................................................................................5Outsourcing......................................................................................................................................6Supply chain relationship: ...............................................................................................................8Supply chain improvements...........................................................................................................10CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13Individual Reflection Report (1)......................................................................................................1Individual Reflection Report (2)......................................................................................................5Individual Reflection Report (3)......................................................................................................7
INTRODUCTIONSupply chain management can be defined as management of flowing goods & servicesthat majorly enclosed with all process where input (raw materials) get changes into final output(final item). In present business world, it is being found that international market of fashion isbeing valued approx 3 trillion dollars. In present report, industry which has been chosen for thisreport i.e. Fashion industry. This sector of in all over world consists with a multi billion dollarbusiness. Industry have kept its focus on selling right clothing product through a process ofcreating, making and then selling. Away with this, it is being given under the stats of Eurostat in which most famous brandslike Nike, Zara and many more has been considered as on brands that comes on top level whichmakes them as largest fashion producer. Here, around 30.5 billion dollars was the amount whichwas generated by the company in 2015 and consists with a value of more than 105 billiondollars. Along with this, firms like Nike have kept their focus on countries like United Kingdom,which is one of leading business firm. Some of main business firms like H&M, ZARA and manymore have been considered as some of major key plays in UK who are already have covered agood image in United Kingdom's market. Report is going to keep its focus on different issuesand these are : supply chain improvements, Globalisation, Outsourcing, Supply chainrelationships and E-Commerce along with information systems.GlobalisationGlobalisation refers as a procedure of interaction and integration with the people, companiesworldwide. In last few decades globalisation has increased because of the advancement intechnologies. This has increased the global interactions so as its growth in international market(Christopher, 2016). Through globalisation ideas and thoughts have been exchanged like earliernobody was known about smart phone but in today’s scenario with the change in course of timein every corner of the world every individual knows about smart phones and its usage as well.Most of the time globalization has worked as a beneficial factor for companies and nationbecause it has generated more and more revenues which is making country’s economy verystrong as compared to other firms. The biggest contribution of globalization can be seen in thefashion industries such as H&M, ZARA, TESCO, etc., through globalization whatever is in trendit easily become fashion and most of the companies takes advantage of this.4
Thus, it can be said that globalization has provided a platform to different companies whocan now easily establish its business around the world (Hugos, 2018). Although globalization hasprovided benefits to the organization but there are some complications as well such asglobalization has failed to manage complications which have gradually pushed towards exposedto systematic risk. As globalization has provided platform to various companies thus, it hasincreased the level of competition and all the firms are formulating strategies and action plan forbecoming one of the leading firms amongst others. Another factor which is creating risk for companies is globalisation has raised theexpectation of customers as consumers wants something new on a continuous basis. Therefore,this has created problem for firms in manufacturing goods and services according to the needsand wants of customers. Therefore, as compared with business globalisation has enabled bigcompanies in capturing more financial leverages. Apart from this some of the issues arementioned below for better understanding:Ethical Business practices: This is one of the substantial challenge which is faced bymost of the companies because it covers areas like labour, safety of products, regulatorycompliances etc., For example: H&M is a fashion brand for increasing its sales they are givingbribe to officials so that branding can be done in an effective manner (Mangan, Lalwani andLalwani, 2016). Cultural Rifts: Cultural barriers play a crucial role and in some situation it has acted as abarrier. Different culture has their own norms and thoughts and they act accordingly. Forinstance: There was time when even after globalisation came into being China, has not opened itsdoor for trading because of which they were one of the least growing nation but as the timechanged in every market one can find products from China. Globalisation is increasing day by day which enhances chances of increase in growth andprofitability of the organisations. There are certain types of issues which often becomes obstaclesfor the company as they are not able to perform their business activities in effective manner. Ithas been recommended to business related to fashion industry that they should increase theirproduct portfolio while they are trading at global level as it helps organisation in influencinginterest of their customers towards the company as they are getting huge number of productvariety in their home country only (Wang, Gunasekaran., Ngai and Papadopoulos, 2016). Thiswill be helpful for the organisation in increasing its command over customers at global level.5
Along with this, it will also increase profitability of the company too. In addition to this, it hasbeen suggested to the overall industry who works at global level to work on their R & Ddepartment so that they can understand actual needs and requirements of the operating countrywhere they expanding their business. This will contribute in enhancing command over customerbase which leads to increase in profitability ratio of the company (Wang and Cullinane, 2015). Along with this, investment on R&D department gives opportunity to the innovation inthe company. These highly innovative products will ultimately become reason of attractiontowards the customers as well as market place. This will be helpful for organisation in order todifferentiate them self from the competitor company and defeating rival companies who sellssame product in the competitor company. It can be said that it will also reduce cost of theproduct too as it is innovated by themselves only in the company. Along with this, innovativeproducts are mostly liked by the youngsters as they feel happy and satisfied while using it. Apartfrom this, it has been also recommended to large scale organization who works at internationallevel to maintain their pricing policy according to the operating country only asset helps them inconnecting with the new people with economic pricing strategy. It also gives opportunity to thecustomers to try new products and services. It can be said that if these customers feels satisfied atthe starting point only then it will retain these new customer for the long duration of time in theoperating country.E-Commerce:E- commerce refers to the online business through which organisation sell their products andservices with the help of computer network (Wisner, Tan and Leong, 2014). Now a day,organisation often uses different e commerce methods in order to promote their products andservices with the huge number of customers. This helps the companies in enhancing sales growthat market place which directly contributes in the growth of the company too in monetary terms.It has been observed that e commerce has been adopted by various organisation belongs to eachevery sector as well as segments. It had became a recent trend in the fashion industry too ascustomers of the companies are happier by buying their favourite products from the onlinemethods without even visiting the store. Apart from this, it has been observed that organisation related to fashion industry are nowa day’s facing numerous of issues which affects their relationship with the customers. It alsoaffects its sales ratio too. These issues arise with organisation because of their less effective6
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