Paper Example on Designing a Supply Chain for Business Operations to Maximize Profit

In a business operationmanagement operation, it is important that products are maintained at constant levels in the store for the profitability of the business. However, to effectively transform this product in the store into income, or profit, some process of supply needs to be donee by use of a well-designed supply chain. A. This again calls for proper plans in the preparation or drawing of the supply chain. It must be ensured by the business operation that products are transported from the company and they reach all the way to the local consumers who may be in a position to purchase the commodity in bulk. In fact, a good supply chain is one that is cost-effective, fast in its deliveries, adaptable in various environments and different people and one that ensures that their organization's interest is properly aligned (Lee,2004). (Lee & Hau L,2004). In the case study below, there different brands of products are looked into, namely; Zari, Benetton, and H& M. in all various supply chain management strategies are applied.

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Managing Supply Chain Approaches

Introduction

The business of garments has adversely changed and is continuing to alter each in every single day. Tday in day out. This is caused by the fact that the companies or the dealers of the product are on their high working performance to always ensure that their customers are served with the latest fashions. In the case study, various retail businesses branded as H& M and Zara, are found to work so hard to ensure that their customers are never left behind in terms of advancement on markets by other firms of the similar industry. As a result, a new invented idea or fashion in the market is in position to flood the whole market within a very short period of time, due to external factors influence business like; competition. and the fact that they ensured this made the two retail businesses successful. Benetton fashion designers are not an exception in this success except that their products are comparatively higher in prices. In order to maximize the profit, the supply chain needs to be propagated and it may be a stepwise stage in order to ensure that the products are obtained by all the potential buyers.

Various Stages of Supply Chain

Design stage

The three fashion designers differ in the way they operate, majorly during the design process of their products. Zara and H & M are found to hire specialists in their operations who help the company in the manufacturing of the new fashions, with Benetton company, its using the world known designer Karl Lagerfeld, who is found to have introduced a lot of exclusive brands, and they majorly target on price, fashion, and quality, whereas, the other two companies majorly target on the fashion do not price (Vats, A., & Nishime, L 2013).

Manufacturing stage

The three brands vary in the methods that they use to end up with the final garments sold in the market, the major difference comes in when considering for the origin countries of manufacturing, and how the manufacturing it is done, the mechanism used to achieve the process. Benetton uses different countries for its manufacturing, in each, the company is designed to produce a particular product to increase the availability of a various range of products in the market with the help of specialists and hired contractors. Zara and H& M use more of order to manufacture their garments in specific countries by the help of employed specialists.

Distribution Stage

In the stage of distribution, both Benetton and Zara operate in the same way by using the automated warehouses and production stores located near the manufacturing areas of the products, whereas, H & M company uses one centralized store which is located in Hamburg. All their produced goods within the country are taken into the store after the inspection is done.

Retail stage

H& M and Zara designers operate in the same way when it comes to the retail of their manufactured products to their customers except that the H & M stores are a little larger in size than Zara stores. The stores are set in one particular station to ensure that their customers are easily informed of where to get the product, they prefer it this way because they believe that a customer can visit the stores at any time and have his/her garment. This almost a similar case with Benetton designers as their stores are extremely large and relatively the largest when making a comparison, the stores are also located in various countries because their operations are also running in different countries.

Supply Chain Management Strategies

Each of the brands in the case study applies the use of various strategies in the process of the supply chain, for, Benetton designers are more of price-oriented thus their strategy is more of quality oriented to help them achieve their needs (Chopra, S., & Sodhi, M. S. 2004). Chopra et, al 2004). Zara and H & M fashioners aim at introducing new fashions as one product is not produced twice, to ensure that the stores are always overloaded with new commodities, as a result, they always build their strategy in doing research.

Amongst these strategies, Zara and H& M kind of strategies is the most appropriate since it is targeted at building in more fashions which is the main aim of the company. The other strategy of quality isn't that bad but is not appropriate because their main aim is earning more from their products (Thomas, D. J., & Griffin, P. M 1996).

Conclusion and Recommendation

In conclusion, the three major stages in any supply chain management scheme are the design manufacturing and retail. There is increase in the rate of competition in the market today as for industries dealing with similar products like the three in the case study, as a result, It is can be recommended that more supply chains which are adaptive with the customer requirements with time are built (Thomas, D. J., & Griffin, P. M.1996).

References

Lee, H. L. (2004). The triple-A supply chain. Harvard business review, 82(10), 102-113.

Chopra, S., & Sodhi, M. S. (2004). Supply-chain breakdown. MIT Sloan management review, 46(1), 53-61. Retrieved from http://www.academia.edu/download/34808711/Supply_chain_Break_down.pdf

Christopher, M. (2000). The agile supply chain: competing in volatile markets. Industrial marketing management, 29(1), 37-44. Retrieved from https://www.sciencedirect.com/science/article/pii/S0019850199001108

Lee, H. L. (2004). The triple-A supply chain. Harvard business review, 82(10), 102-113.

Thomas, D. J., & Griffin, P. M. (1996). Coordinated supply chain management. European journal of operational research, 94(1), 1-15. Retrieved from https://www.sciencedirect.com/science/article/pii/0377221796000987

Lee, H. L. (2004). The triple-A supply chain. Harvard business review, 82(10), 102-113. Retrieved from http://www.scap.pk/article/SupplyChaindd.pdf

Vats, A., & Nishime, L. (2013). Containment as Neocolonial Visual Rhetoric: Fashion, Yellowface, and Karl Lagerfeld's "Idea of China". Quarterly Journal of Speech, 99(4), 423-447.

Valenduc, G., & Muchnik, M. (2007). Occupational monograph. Designers in the clothing industry. Valenduc, Vendramin, Krings & Nierling (eds.): How restructuring is change occupations, 29-48.