Operations Management Report: Aneli Fashion's Challenges and Solutions

This report provides a comprehensive analysis of the business operations of Aneli Fashion, a clothing brand, and compares its strategies with those of competitors like Zara, H&M, and Benetton. The report identifies key operational issues, particularly focusing on supply chain management and the importance of adapting to customer needs and fashion trends. It examines various supply chain models, including efficient, fast, and continuous flow models, and their relevance to the fashion industry. The report then offers specific recommendations for Aneli Fashion, such as improving design exclusivity, adopting just-in-time inventory, and conducting market surveys to align products with consumer preferences. The conclusion emphasizes the critical role of efficient business operations and effective supply chain management in enhancing the success of fashion businesses. The report also references various academic journals and books related to business operations and supply chain management.

MANAGEMENT
IN
BUSINESS OPERATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Identifying and Analysing the operations issues that are faced by Aneli fashion..................1
2. The solution and recommendation to Aneli fashion to improve their operations...................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Operations management can be defined as the administration of business practices in
order to create highest level of efficiency possible within an organisation. It is a process which
helps in converting raw material into finished good. Maintaining effective supply chain is a
critical function which relates to the management of inventory through supply chain. In fashion
industry, it very essential to adequately supply the clothing and garments to customers that
follows the latest trend and fashion. The present report is based on managing the business
operations of the fashion industry. The report will help in analyse and identified the various
issues and problem that appears in different fashion brands of Aneli clothing brand with Zara,
H&M and Banetton. Report will also provide possible solution and recommendation to this
fashion brands in order to improve the business operations and management of this companies.
1. Identifying and Analysing the operations issues that are faced by Aneli fashion.
As per the given case study, it can be analysed that Aneli clothing brand like other
fashion brand such as H&M, Zara and UCB (Benetton) is effective in its business operations.
Aneli is engaging in enhancing its manufacturing the stores that can be affordable by all
customers. As the customers of Aneli wants the products to be updated and keeping meeting the
new tends and fashion. It can be said from the case study that Zara, H&M and Benetton are
manufacturing and selling the most recent possible garments in the same possible affordable
price. It considered the reason of their success. Efficient business operations are considered key
to get success in the fashion market.
Business operations management is the administration of business practices that are
involved in creating the highest level of efficiency possible within the Aneli clothing’s. It can be
referred as the process which effectively convert the raw material and labour efforts into goods
and service. It concerned with planning, organising and supervising the process of production,
manufacturing of garments (Means, 2017). In fashion industry the business operation
management is concerning with manufacturing raw material in finished good and deliver it to the
customer through warehouses and retailers. The cost-effective management of business
operations is very essential in order to increase the business brand value in fashion industry. It
can be analysed from the case, that there are many operations issues that are being faced by
Aneli fashion

It can be said that, in fashion market today consumer holds all the power and is a King.
All the fashion retailers whether Zara, H&M or Benetton are focused in manufacturing on
garments by being hyper sensitive to customer's need and wants. As Benetton become successful
by manufacturing and selling bright, casual sweaters (Hirschmeier and Yui, 2018). Zara focused
mainly on supplying the recent and unique clothing’s.
It can be said that in business operations, the most effective process is adequate supply
chain which has a direct connection with the performance of the business in terms of product
cost, working capital requirement and demands of customers. In Aneli Fashion, it can be viewed
that the business has to adopt the supply chain management which would help in managing all
the process of transferring the raw material from manufacturing to retail through warehouse for
the ultimate delivering to customers in the lowest possible cost. The company should adopt the
supply chain models which are oriented to efficiency (Yakovleva, 2017). This model is helpful
for the fashion retailers as it focuses on valuing value proposition oriented as high relevance of
asset utilization, low cost, total cost and more emphasis is given to end product. There are three
supply chain model which will fall under this category:
The efficient Supply chain model: This model is best suited to industries that exist in
highly competitive markets with several producers, and customers who may not readily
appreciate their different value propositions such as fashion industry. These are usually
discommoded businesses where production is scheduled based on expected sales for the length
of the production cycle and competition is almost solely based on price. The key objective of the
efficient supply chain model is that managers should focus on maximizing end-to-end efficiency
including high rates of asset utilization in a bid to lower costs.
The fast supply chain model: This supply chain model is best suited for companies that
manufacture trendy products with short life cycles. Consumers are mostly concerned with how
fast the manufacturer updates their product portfolios to keep up with fashion trends (Kumar and
Zahn, 2013). Companies that adopt the fast supply chain model focus on shortening the time
from idea to market and maximizing the levels of forecast accuracy so as to reduce market
mediation cost.
The continuous flow model: This model is ideal for industries with high demand
stability. The manufacturing processes in a continuous-flow model are designed to generate a

regular cadence of product and information flow. This supply chain model is suited for mature
industries with little variation in the customer demand profile (Gao and Clarke, 2012).
Competitive positioning for this model involves offering a continuous-replenishment system that
ensures high service levels and low inventory levels at customers' facilities.
It can be analysed from the case that having an efficient supply chain is important for
Aneli clothing as well as for Zara, H&M and Benetton. The supply chain of Aneli fashion
includes designing, manufacturing, and distribution to retailers. H&M supply chain involves
middlemen which have efficient distribution system in cost effective manner. Whereas, Zara's
supply chain in integrated effectively which help them in satisfying the demand of customer
quickly. It can be identified from the case study that, H&M's designer were not designing for
value and not exclusive.
2. The solution and recommendation to Aneli fashion to improve their operations.
Through the case study it can be analysed that Aneli fashion along with Zara, H&M and
Benetton is successful with their effective supply chain and effective operational management
(Stevenson, Hojati and Cao, 2015). They give emphasis on the customer needs and current
fashion trend, they focuses more on higher quality at reasonable process that are affordable to the
customers.
If looking at the designing process, all three business are focused towards best design in
market as this trend is foremost important in market. The H&M has a design department whose
main task is to finding the correct balance between components of business concept like fashion,
price and quality. It can be recommanded that H&M has to work on its design process that
should be more exclusive (Kojima, 2012). It has been found that Benetton should also start
seasonal cycle with introducing new clothes. The firm should focus on customisation off
apparels which will helps in making optimum utilization if resources and managing production
cost for further customization effective approach for managing customer satisfaction. It can be
suggested to H&M that it should start its manufacturing factory that will help the company to
save its supplier's expenses. As the supply of the inventory get delayed from 3 weeks to 6
months. It can be recommended that the order should be placed in advance in order to get rid of
the out of stock issues in inventories.

On the other side, as per considering the proper volume of stock which must be stored by
organisation to mitigate the challenges and overcome with the issues (Hirschmeier and Yui,
2018). They have to implicate just in time inventory concept which will be effective for the
producer with context to produce the articles as demanded in the market. There have been
changes appeared in the demands for the clothes and garments in the fashion industries as per
reforms in the trends, consumer preferences as well as satisfaction with the products Thus, these
variations insists changes in the business and product concepts.
Similarly, to improve the sales revenue of the organisation on which there will be
requirement of bringing innovation and uniqueness in products. Thus, these are the strategies
which creates curiosity, interest and motivation among the buyers which reference to buy such
commodities (Kumar and Zahn, 2013). In context with this, producers have to conduct a market
survey and analyse the current preferences and satisfactory level of the buyers which helps them
in designing the commodities as per their requirements. Along with this, offering the products
based on affordable prices will be effective concept with reference to attract the large number of
buyers as well as which reflects the rise in profitability of Aneli fashion.
CONCLUSION
By summing up the above report, it can be concluded that in order to increase the
efficiency of the business, managing the efficient business operations is very important. IN
fashion industry, effective supply chain and logistic is critical in enhancing the efficiency of
business operations. The present report has concluded a case study of fashion brand Zara, H&M
and Benetton. The study has concluded different models that has explained the effectiveness of
supply chain in business operations of the company. Later, report has also concluded the solution
and recommendation that will help in improving the operations efficiency of this fashion
companies.

REFERENCES
Books and Journals
Gao, F., Li, M. and Clarke, S., 2012. Knowledge, management, and knowledge management in
business operations. Journal of knowledge management, 12(2), pp.3-17.
Hirschmeier, J. and Yui, T., 2018. The development of Japanese business, 1600-1980.
Routledge.
Kojima, K., 2012. Direct Foreign Investment: A Japanese Model of Multi-National Business
Operations. Routledge.
Kumar, S. and Zahn, C., 2013. Mobile communications: evolution and impact on business
operations. Technovation, 23(6), pp.515-520.
Means, G., 2017. The modern corporation and private property. Routledge.
Stevenson, W. J., Hojati, M. and Cao, J., 2015. Operations management (Vol. 8). Boston:
McGraw-Hill/Irwin.
Sullivan, D., 2011. Document warehousing and text mining: techniques for improving business
operations, marketing, and sales. John Wiley & Sons, Inc..
Yakovleva, N., 2017. Corporate social responsibility in the mining industries. Routledge.