Supply chain management : uniqlo PDF

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Uniqlo Company Limited: Supply chain management
Name
Institution

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Introduction
Background and purpose of the report
Over the decades there have been tremendous advancements in technology and increased
globalization that compel companies to effectively and efficiently manage their supply chains to
enhance the competitive advantage in the industries they operate. To facilitate a broader supply
chain, it is paramount for managers to develop mechanisms that lead to improvement of
cooperation and collaboration among the participants involved in the logistics function
(MacCarthy, Blome, Olhager, Srai & Zhao, 2016). Therefore, this report seeks to critically
analyse the supply chain management (SCM) of Uniqlo Co. Ltd by evaluating its four-key flow,
the production planning processes, methods of forecasting, identifying the challenges and
provision of appropriate solutions to enhance the quality of its supply chain activities.
Key information about Uniqlo
Uniqlo company limited is a clothing company that was originally founded by Tadashi
Yanai in Yamanguchi, Japan in the year 1949 which operates in three segments; Uniqlo Japan,
Uniqlo international and global brand. The brands are all purposed in the sale of clothes,
domestic items among others with over 1000 stores worldwide (Agus, 2015). Uniqlo can be
described as a Japanese manufacture casual wear designer that also undertakes the retail
activities. The organization also operates in other countries which include USA, China, France,
Hongkong, Japan, Korea, Malaysia, Russia, the US, Thailand, Singapore among other countries.
The movement of information, finance and goods from the producer to the consumers and vice
versa of the firm start with the acquisition and processing of raw materials into useful products.
Uniqlo speeds up its production cycle to ensure it competes effectively with other fashion

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retailers in the shipping race through compression of the design-to-deliver SC to approximately
thirteen days (Chuni, 2008). Since 2016, Uniqlo has been executing its SC transformation to
meet the expectations of the digitalized economy. Uniqlo products are sold through direct sales
force, wholesalers, retailers, online and retail stores, and third-party cellular networks. However,
the management of the company seeks to outsource manufacturing to help in the reduction of
inventory levels.
The key flow in the supply chain
Product flow
The concept involves the movement of processed goods from supplier to the consumer.
At Uniqlo Company, the research and design team identifies the latest fashion and seek to
acquire appropriate quality materials from manufacturers directly. Once the materials are
supplied to the merchandisers the ready-made clothes are distributed to the consumers through
retailers as other products are purchased right from their stores (Janvier-James, 2012). Since
Uniqlo promotes their products through media, reach the consumers through their online stores
where customers make orders online and in return goods are delivered to them. The customer’s
desk is also available in which the customers offer their views in connection to the products they
purchase,
Information flow
The company acquire important information from the customers through online platform
concerning the demand of products in the market, response on the quality of products and also
customers’ requests for products the data which gives the company direction as far as quality
production is concerned (Habib, 2014). Orders made by customers through online are transmitted

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through online sales where customers acquire their products from the company's nearby stores
which are located worldwide. Stock control is achieved by inventors monitoring the sale process
and gauge the period taken by different products and also make changes in the prices of items
depending on the change in time. The orders made by customers once received can’t be changed
by the customers since they are always immediately processed by the company but in such cases,
the return policy is compiled within thirty days of order receipt in which the customer returns the
item (Antonowicz, 2018). Uniqlo products are unique because the entire process of making
clothes is unified by their business model.
Return flow
Purchased vending machines with original conditions of purchase and receipts are
allowed to be returned to different stores of Uniqlo within a period of sixty days but in-store
items are only exchanged at Uniqlo’s stores in Singapore but not refunded back if sent to the
warehouse.
Cash flow
Uniqlo’s employers are consulted about salary since jurisdiction and minimum wage
differs. The organisation payment differs depending on the position of the employers within the
company and payments can be done daily, weekly or monthly depending on one’s invoice
payments and conditions (Bag, 2016). Essential information about salary is directly acquired
from the past and present job advertisements, employees and users on indeed 3 years ago. Uniqlo
values human resource as an investment and thus when making decisions concerning human
resource, it considers the risk, return and cost by training the employees it considers cost but in
return increases potential motivation and loyalty increase as human resource can’t be limited to
other assets as well as competitors.