Supplying Fast Fashion Essay

Introduction

Fashion as an industry is highly gaining both international and global recognition. Usually, designing clothes occurs in one country, their manufacturing in another and a third country, they are sold (Ciarniene, 2014). Fashion retailers have recently caused significant changes in the industry through a strategy referred to as fast fashion. This strategy targets the satisfaction of consumer demand at its highest. This means reducing the lead times and the buying cycle that precedes the introduction of new fashion products in stores (Ciarniene, 2014). The retailers including H&M, Benetton, and Zara have adjusted their supply chain management to adopt the fast fashion supply strategy. However, there exist significant differences in control of the individual supply chains in terms of design, manufacture, and distribution. These supply chains apply approaches to supply chain management that are unique to each chain.

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Design

In an industry as volatile as the fashion industry, adaption is not a choice but a necessity for survival. Fast fashion comes as one such adaption in the ever so rapidly changing market. H&M has adopted a new design approach for them to move at the same pace with fashion trends. This supply chain is training its design researchers to incorporate more sustainable design strategies in this step (Earley, 2017). Through this strategy, designers and scientists come together to develop profitable and sustainable solutions in the fashion industry by evolving new materials, prototypes, and systems. This is the sustainable design inspiration (SDI) at H&M.

The design approach at Benetton is very intense. Around 300 designers research new clothing concepts and new materials and they design for all Benetton's brands. In an attempt to globally standardize their range, Benetton had 20 percent of all its ranges customized according to the specific needs of the country since 2000 (Giroux, 2015). Now only customizing close to 10 percent of garments, a 30 percent reduction in the number of designs individually offered globally is reported. However, there is a decrease in production costs and a strengthened global brand image.

A multi-faceted design approach applies to Zara (Sardar, 2015). Different from similar chains, design at Zara is affected by not only the designers, but also consumers and market specialists. The design stage is therefore split into categories of men's, women's and children's garments. Prototype designs are tested by the contributors above to design in workshops. The market specialists then report on customer reactions to new designs to Zara retail stores.

Manufacturing

H&M collaborates with its suppliers in Europe and Asia in the manufacturing stage because it does not own a factory. Its 21 production offices around the world work with suppliers to produce more than half a billion items per year. This close interaction enables H&M to purchase fabrics early. Other procedures such as cutting and dyeing of the materials are at a later stage. The nature of the products leads to variable average supply lead times, ranging from three weeks to six months.

Zara owns several manufacturing factories that enable it to have the shortest average supply lead time of 15 days only. This also allows it to stimulate customer demand in their favor. Garments at Zara are produced mainly in their Spanish factories with about 40 percent of the fabric obtained from its subsidiary. Benetton, like Zara, own factories for manufacturing do the more capital-intensive processes such as dyeing and cutting fabrics. Operations,like sewing, that are labor-intensive are handled by sub-contractors. These benefits significantly reduce the overall production cost.

Distribution

At H&M, sub-contractors are used for the physical delivery of the goods. However, stock management is primarily an inside job. The products move directly from the production site to the retail country through a transit terminal for H&M. Inspection of the goods followed by allocation to a centralized stock room or stores takes place. Goods from the stock room re-stock the stores on an item level basis.

Zara and Benetton own automated warehouses located near their main centers of production. These warehouses are for storing, assembling, and packaging individual orders to be retailed. The warehouses, termed as huge financial investments for both brands, significantly reduce the cost of distribution.

Retail

H&M stores are significantly large, measuring about 1,300 square meters. They are wholly owned and headed by H&M. Creating an inspiring and comfortable atmosphere in which customers find easily what they want while still feeling at home is their primary goal (Martino et al., 2017). Zara stores are smaller in size but are similar to H&M in their aim to please the customer. Due to their non-repetition of designs, their garments have a short life-span in the stores. Also, their production is relatively small; hence the radical change in garments displayed at stores which stimulates faster sales.

Benetton reshapes its retail operation continually (Martino, 2016). Retail outlets made up of small shops operated by third parties are co-retailing with large Benetton-owned stores. This dramatically increases the range of products that can be displayed at a go since their production is also in relatively large batches.

Supply Chain Management Trends

H&M uses trainers for their design researchers to stay ahead of the fast fashion trends by developing sustainable and inspiring designs. Involving other specialists including budget controllers and pattern designers is reflective of the success of the final product. Zara includes expert opinions in its supply chain management and also the split of the processes into smaller units that allow for better results and fewer mistakes. Benetton uses controversial advertising and the high standards of durability and quality of its garments. Also, producing products that are specifically tailored to the needs of the consumer never goes wrong. This is why Benetton has a better supply chain management.

References

Ciarniene, R., & Vienazindiene, M. (2014). Agility and responsiveness managing fashion supply chain. Procedia-Social and Behavioral Sciences, 150, 1012-1019. doi.org/10.1016/j.sbspro.2014.09.113

Earley, R. (2017). Circular design futures. The Design Journal, 20(4), 421-434. doi.org/10.1080/14606925.2017.1328164

Giroux, H. A., & Robbins, C. G. (2015). Consuming social change: the "United Colors of Benetton." In Giroux Reader(pp. 97-116). Routledge. doi.org/10.4324/9781315634487

Martino, G., Fera, M., Iannone, R., & Miranda, S. (2017). Supply chain risk assessment in the fashion retail industry: An analytic network process approach. Int. J. Appl. Eng. Res, 12, 140-154.

Martino, G. (2016). Supply Chain Management in the Fashion Retail Industry: a multi-method approach for the optimization of performances.

Sardar, S., & Lee, Y. H. (2015). Analysis of product complexity considering disruption cost in fast fashion supply chain. Mathematical Problems in Engineering, 2015. doi.org/10.1155/2015/670831.