Supply Chain

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|Module Number: MO0358 | |Strategic Supply Chain Management | |(Individual Project) |

INTRODUCTION

1.1 Objective
“Supply chain management = Order to Cash.

As my group project is about Burberry supply chain management so I would like to further explain it here and show you how Burberry successes after apply supply management.

1.2 The Background of BURBERRY
BURBERRY is established in London, United Kingdom in 1865 by Thomas Burberry. The Business concept of Burberry is “Fashion & Luxury”. At the end of 2007, Burberry started supply chain management in their business and hope that can delivered luxury and lifestyle product to customers at more than 208 concessions within department stores and digital commerce, plus 44 outlets and 192 mainline stores over the world and Burberry employs more than 30,000 people to operate the business smoothly. Burberry offers fashion for women, men, and children, also sells their own-brand beauty, cosmetics and perfume. Burberry has own factory at London Castleford but just produce trench coat and some core items. And now Burberry buys its goods from around 100 independent supplies, mostly in Asia and Europe. Burberry corporate with suppliers to develop long-term, sustainable social and environmental standards in the factories for produces Burberry high quality products.

Burberry reaches the customers through two sales channels: stores and online. The store is the most important for Burberry as the customers can see the product, try it on and feel the products. Burberry is expanding their business new offerings and via new channels such as internet/ online business, the advantages of offering new channel are customers able to shop online, it can to let customers have the freedom of choice to choose the sales channel that suits customer best at that moment.

Burberry stores are spread all over the world. It can be found in United Kingdom, Europe, North America, the Middle East and Asia. And according to their annual report China will be their very critical regions for their business so Burberry plans to establish more stores in China in the coming year. Burberry is growing not only by turning to customers in new stores and new places. It is at least equally important that the company continually develops.

Their fashion categories are including menswear, womenswear and childrenswear. Fragrance & beauty category was in the leading position of the Asia market two years ago. Accessories category contains eyewear, scarves, watches and bags.

Supply chain management

According to Mentzer, et al (Ballou, 2004), "Supply chain Management (SCM) is defined as the systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purpose of improving the long-term performance of the individual companies and the supply chain as a whole "(p.5).

In order to balance end customers' demands and the hit for profitable growth, Burberry has moved aggressively to build an efficient and successful supply chain management an efficient and successful supply chain management system. It must have five basic components that are considered and acted upon. These components can help to enhance revenue, control costs and asset utilization as well as customer satisfaction. They are including planning, sourcing, make, delivery, and return which is same as the supply chain of...
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