H & M Supply Chain management: A case study

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Hennes & Mauritz AB  is a Swedish multinational clothing-retail company known for its fast-fashion clothing for men, women, teenagers, and children. As of November 2019, H&M operates in 74 countries with over 5,000 stores under the various company brands, with 126,000 full-time equivalent positions. It is the second-largest global clothing retailer, behind Spain-based Inditex (parent company of Zara). Founded by Erling Persson and run by his son Stefan Persson and Helena Helmersson, the company makes its online shopping available in 33 countries.

Revenue in a supply chain: Financial Risk from the third party

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Carrying out thorough third party audit not only provides the necessary regulations, but it also helps mitigate against reputational financial risk and data related damage. It is required to be careful about various governmental embargo situation: Third party suppliers, logistic service providers should prevent themselves from buying from or selling to anyone on the relevant restricted company lists maintained by various governments, such as Australia, Canada, the UK and the US. On the other hand, this is a strategy which results in higher supply chain profit than a price of the whole duration of sales season. To increase the profit margin Supply Chain Managers must use all the levers available, including price. Third type of approach he can adopt is at high demand season, he can take lower price, and low demand season, he can take a higher price.

5 Reason your Enterprise Need Supply Chain Integration

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Supply Chain Integration help in reducing product delays by improving the efficiency of the supply chains. The product delays are largely a by-product of mismatch in information and dis-coordination between the delivery, warehousing, and trading partners. This brings visibility to all parts of the supply chain and helps in giving adequate information about each step that ensures compliance, adherence to the safety standards and product quality. This helps in making supply chain agile and scale-able and gives confidence to the stakeholders to make sure the best practices are implemented at all the level of supply chain operations.