World Co Inc - Free download as Word Doc (.doc), PDF File (.pdf), Text File (.txt) or read online for free. Supply Chain Management at World Co., Ltd. PDF, TXT or read online. Supply Chain Management at World Co., Ltd. For World Co. Is controlled by World. Supply-chain management in World Co. Japan is one of the largest and most sophisticated clothing markets in the world, and its fashion designs and product quality enjoy high reputation world-wide. The fashion industry is trendy as people closely follow the changing trends in the market. As compared to US, fashion products in Japan have short life cycles. There is uncertainty in demand due to fast chan gin g tr ends and inc rea sed sea son ali ty des pit e no maj or cha nge in seasons. Moreover, the fashion apparel industry is highly competitive. ![]() ![]() It fac es com pet iti on, bot h, loc all y and int ern ati onal ly. Wit h the sea son al variation in the demand for a certain line of clothing a need of sophisticated supply chain management arises. As mentioned in the case study, three distribution alternatives are available i.e. Company-owned stand alone stores, shops in fashion malls, and shops within department stores “store-within-a- store”. Most fashion retail chains operate via specialty retailers of private- label apparel (SPAs) like World Co. SPAs are the fashion companies who appl y fas t fas hio n pol icy in the ir bus ine ss mod el, which mak es it possible to integrate planning, production and sales, thereby encompassing the complete distribution channel and customer service. Since, the products face short life cycles with uncertain demand it needs low inventory levels with efficient replenishing of sold stock. By focusing on sophisticated forecasting methods, taking account of the historical sales data and cha ngi ng tre nds in the mar ket cond it ion s, ret ail cha ins can cat er to customer needs effectively. The company can gather point-of-sale data from its retaile rs and analyze consum ers purchase trends to esti mate the quanti ty of a particular product required in certain retail store. It will give better idea of consumers’ preferences in that location. For this company can offer its retailers latest information technology tools and can also encourage them to install systems for efficient and speedy sales ordering. Revising it based on early sales data. Aggregate forecast from “distribution side” and “category side” was made and the maximum of the two was selected. Distribution side forecast was based on the total demand from each store. For existing stores, historical sales data, growth rates, seasonality, co mp et it or ac ti on s an d ch an ge s in ma cr o ec on om ic si tu at io n we re considered to forecast sales growth. For new and future stores, it used the amount of foot traffic, target customers who come there and competitor locations to forecast. Based on demand forecast for each store category forecast for each category was derived based on the percentage of its sale expected at a particular store. In the category forecast, the expected sales of each product category were added to reach the total. This was based on historical data, market trends, and the planned advertising expense. Ranking of SKUs was done using the “Obermeyer Method”. World invites 20 store managers and assistants from its target market to head quarters, where products are displayed in a room the same way as in shops. Then, they are asked to rank the products. Based on this, the weighted mean and standard deviation of the SKU is calculated. The ranking done by the representatives of stores with highest sales volume is given the maximum weight. After that, they divide SKUs in A, B, C and D categories. Based on the contribution of each SKU to the sales and category, SKU level forec ast was derive d. Even after thi s lengthy proce ss manager s revised sales plan as they receive latest sales data. Brand managers tested products in advance of the actual season to indentify sales patterns.
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