H&M Process

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Process include all the tasks, schedules, activities, and routines that enable a service to be delivered to a customer(Baines, Fill&Page, Marketing). It describes the logistics of services delivery, mapping the players and activities to allow effective production of the service(Stokes&Lomax, 2008).

The process in H&M is from trend predetermination to selling in stores. In brief, designers carry out their work based on the forecasted data. Secondary, suppliers manufacture the clothes. Finally, the clothes could be sent to stores all around the world and customers buy the products. This process could be compleated within 20 days at the soonest. But the leadtime of H&M is usually 21 days. The information of selling of all stores will be gathered by head office in Sweden. Various departments share and analysis the selling data and conclude customers’ desirabilities. The designers could do the design. Once the design has been completed, each department decide the amount of production and arrange the suppliers. H&M has two supply chains, 60% of production in Asian and the rest in European. However, these suppliers are all outsourcing and there are over 900 factories in 21 lowest-wage countries manufacture clothes for H&M.

H&M has 13 sale agencies in Asia and Europe. After manufacturing, the logistics center in Hamburg, German make the distribution and delivery to every stores. In general, H&M use ocean shipping on the products from Asia and railway transportation from Europe.

According to the graphs, there are 2186 stores in Europe, it accounts for 76% of whole number of H&M stores in the world. In 2012, the majority of sale was contributed in Europe (114,310 million (SEK)),it accounts for 80% of the sales of H&M. Next comes North America, whose percentage is 12% in the number of stores and 11% in sales.

In Europe, H&M stores spread at high street areas, but in North America and Asia, middle east & North Africa, H&M stores mainly located at CBDs. For...
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