Preview

H&M Supply Chain

Best Essays
Open Document
Open Document
2363 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
H&M Supply Chain
Table of Contents

Page 2. Introduction

2. Company Background

4. Supply Chain Structure

6. Supply Chain Flowchart

7. Conclusions and Recommendations

8. References

Introduction

This report provides an analysis of the supply chain of H&M and management of that supply chain. A brief company background will be established to better understand the analyses that follow. These analyses will include the structure of the supply chain; key challenges within the supply chain; competitive strategies used to differentiate H&M’s supply chain; value adding activities in the supply chain; and concluding recommendations based on the aforementioned analyses to sustain and strengthen their position in the market place.

Company Background

H&M is a Swedish brand, founded in 1947 in Västerås, Sweden by Erling Persson, which over the years has brought into its product range own-brand clothes, accessories, footwear and cosmetics and caters to women, men, teenagers and children. H&M currently operates as the predominant part of Hennes and Mauritz H&M AB. The H&M Group also owns COS (Collection of Style) targeting an older, more discerning affluent customer and as well as recently acquired FaBric Scandinavien, which includes the chains Weekday, and Monki in addition to the Cheap Monday brand. (H&M Hennes and Mauritz AB 2009)

At the end of the 2008 financial year the H&M group had 1,738 stores in 33 countries including 18 franchise stores, 13 COS stores, 17 Monki stores and 8 Weekday stores (H&M Hennes and Mauritz AB 2009). Since then the Group has increased its fascia to over 1800 stores in 34 countries, most recently expanding into the Russian market.

[pic]
(Hm.com (b) 2009)

Alongside its stores it has also operated an e-tail website since 1998 in addition to a catalogue service, both currently limited to



References: [pic] (Hm.com (b) 2009) [pic] (H&M Hennes and Mauritz AB 2008) [pic] (H&M Hennes and Mauritz AB 2008) Supply Chain Structure Jackson and Shaw (2002) define the supply chain as being an integrated chain of product responsible for the manufacture, delivery and sale of a product to a consumer Word count: 1994 Hm.com (a) (2009) ‘Facts About H&M’ [online] (accessed on 13th August 2009) Available from http://www.hm.com/gb/abouthm__abouthm.nhtml H&M Hennes and Mauritz AB (2008) Full Year Report, H&M Hennes and Mauritz AB. Stockholm, Sweden. H&M Hennes and Mauritz AB (a) (2009) H&M Annual Report 2008, H&M Hennes and Mauritz AB. Stockholm, Sweden. H&M Hennes and Mauritz AB (b) (2009) Six Month Report 2009, H&M Hennes and Mauritz AB. Stockholm, Sweden. Jack, S. (2007) Drapersonline.com ‘Supply Chain Focus: Brands – Chain Links’ [online] (accessed 17th February 2009) Available from http://www.drapersonline.com/news/supply-chain-focus-brands-chain-links/762277.article Jackson, T Li, L. (2007) China Business Feature ‘Fashion Magnates’ Supply Chain Contest’ [online] (accessed on 14th August) Available from http://www.cbfeature.com/china_cio/news/fashion_magnates_supply_chain_contest

You May Also Find These Documents Helpful

  • Better Essays

    Supply chain management (SCM) is a crucial process for a company where steps take are taken to deliver a good or service. Benefits to the supply chain management contribute to helping create an integrated company where reducing costs is a priority. SCM is a network of companies such as, suppliers, manufacturers, and retailers that improve an industry. The footwear industry involves operating a global supply chain and this paper covers the purpose and value of each link of the supply chain.…

    • 917 Words
    • 3 Pages
    Better Essays
  • Best Essays

    Klara, Robert. "Product Placement of the Decade." Brandweek 50.44 (2009): 16. Business Source Premier. EBSCO Web. Quinsigamond Community College, George I. Alden Library, Worcester, MA. 17 June 2010.…

    • 1779 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    Marketplace Stimulation March 29, 2011 Table of Contents Report to Executive Board of Corporate Headquarters 6 Financial and Market Performance for Second Year 7 Brief Business Plan 7 Brand Strategy 7 Pricing Strategy 8 Advertising Strategy 8 Sales Strategy 8 Business Strategy and Performance for Second Year 8…

    • 5987 Words
    • 24 Pages
    Powerful Essays
  • Better Essays

    Gb 570

    • 1311 Words
    • 6 Pages

    A supply chain is very important to an organization. It can and should show the relationship between suppliers, distributors, managers and consumers. This paper would detail how important suppliers and distributions are to an organization’s success. And how important a supply chain is within an organization and how managers can utilize the supply chain. It is important that companies such as Target Corporations utilize the supply chain and gain competitive advantages. Target is one of the world’s largest retail stores; the first Target was opened in 1962 in Roseville, Minnesota (Target.com). By the end of 1962 there were only four Target and they were all operated in Minnesota.…

    • 1311 Words
    • 6 Pages
    Better Essays
  • Best Essays

    Target's Supply Chain

    • 1472 Words
    • 6 Pages

    Feller, A., Shunk, D., & Callerman, T. (2006, March). Value Chains Versus Supply Chains. In…

    • 1472 Words
    • 6 Pages
    Best Essays
  • Powerful Essays

    Tirschwell, P. (2008). The Journal of Commerce: Target reconsiders supply-chain strategy. Retrieved on December 13, 2011 from http://www.ittc.com/uploadedfiles/News/07_14_08_target_reconsiders_supply_strategy.pdf.…

    • 1456 Words
    • 42 Pages
    Powerful Essays
  • Good Essays

    Supply chain is the beginning of a business production. A business must have a supply chain in order to be able to receive products and to distribute them. The definition of supply chain is described as a certain network of other companies that works together to both serve the customer, and the consumer (Supply Chain, 2015). A supply chain is the main link between a business and its consumers. When a consumer purchases a product from a business it comes from a line of other companies. The product might come from one store that manufactures the product, then is sold to another store for a goods price, next it is sold to the customer at the price they are willing to pay. Supply chains are not always used to their full extent. Many companies are unaware of what really goes on within their supply chain. There are businesses that do not know the information flow of the supply chain, and only really focus on the visible aspect. This results in the miscommunication and the potential to use the supply chain to its maximum potential (Handfield, 2011).…

    • 811 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    zara and h&m Price

    • 279 Words
    • 2 Pages

    H&M is known for its stylish clothing for low prices. H&M’s price strategy is based on their customers wants and needs. Low prices, high fashion! H&M uses physiological prices which is a very smart strategy that always works. This strategy means that the price of a shirt isn’t 20 euro’s but 19,90. It seems much cheaper but the difference is just 10 cents. Normally at H&M you will not see clothes with a price higher than 80 euro’s. but sometimes a designer designs clothes for h&m for a lower price than the price of the original designer clothes. But higher than the usual H&M prices. For example Givenchy and Jimmy Choo . By doing this, they get much attention, so they might attract new customers. H&M uses also discounts. For example two weeks ago there was a student discount so you got 10 percent discount on the entire collection.…

    • 279 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    This report outlines the market failings of Marks and Spencer in the 1990’s, why it happened and how they managed to come out of it. This factor will be compared to today’s successful company along with its new strategies and tactics to keep the business successful.…

    • 3542 Words
    • 15 Pages
    Best Essays
  • Good Essays

    Since 99% of H&M´s garments are produced outside of Sweden, and they claim that “H&M sees tax as an important part of its social responsibility”, it´s hard to understand why the company does not redistribute any profit to the producing countries. H&M avoid paying income tax in sourcing markets by coordinating all their procurement orders through representative (procurement) offices in the producing countries. According to Erik Knijnenburg, the Global Tax Manager of H&M, there is no commercial transaction and therefore no base for income tax. It is H&M´s head office in Sweden, H&M GBC, that pays the suppliers and resells the clothes to their stores, and therefore it is this company, that collects the revenue, pays the…

    • 1076 Words
    • 5 Pages
    Good Essays
  • Better Essays

    H&M is subjected to political pressures from the labour rights movement especially in low-wage countries. H&M has outsourced its manufacturing line to low-cost countries. H&M has no or little control over the operation in those countries. Hence, the firm would be closely scrutinised by the labour rights movement to spot any abuse in the rights of employee e.g. poor working condition. Government expansion and international trade policies would greatly impact the growth of the industry and increases competition.…

    • 3293 Words
    • 19 Pages
    Better Essays
  • Powerful Essays

    The purpose of this essay is to discuss different supply chain management approaches taken by H&M, Benetton and Zara. It is first necessary to explain what a supply chain management means. Supply chain management involves planning, design, maintenance and control of the flow of materials and information along the chain in order to efficiently satisfy customer's requirements (Schroeder, 2000). Such an approach, of looking at the entire supply network helps organisations identify their competitive advantages and parts of their processes that contribute the most to the performance objectives that are of the greatest importance to the customers (Slack et al., 2007). It also helps to develop long-term strategies for the company based on the identified advantages.…

    • 2712 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    H&M Structure

    • 573 Words
    • 3 Pages

    H&M is currently structured as a matrix organisation this is due to their widespread departments all over the world.…

    • 573 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    H&M market

    • 1648 Words
    • 7 Pages

    H&M (Hennes & Mauritz AB) is the world second largest retail-clothing company. It was founded in 1947 in Sweden. In recent years, it has expanded rapidly, about 3,000 branch stores existing over 50 countries which include in Asia, Europe and America. As a “fast fashion” clothing company, H&M’s business concept is offering latest popular design and good quality at the best price. The H&M Group offers fashion from the H&M, COS, Monki, Weekday, Cheap Monday, & Other Stories and H&M Home brands. Therefore, its product line is various, including not only clothes but also shoes, cosmetics, home supplies and accessories. Customers of any age group are able to select suitable products, no matter young or old, men or women. However, the main marketing target is young people between 15 to 30 years old who chase fashion but cannot afford to buy luxury clothes. Based on Fast-Fashion concept, the biggest characteristic is that the time of the whole process including designing, producing, delivering and selling is very short, and all can be done even in only 21 days (Fahy & Jobber, 2012). Compared with its competitor, ZARA, although they have similar fashion designs, H&M has lower price of about 30 per cent to 50 per cent than ZARA (Figure 1) (Boyu-linen, 2011). Moreover, it usually cooperates with world famous designers or super stars, such as Karl Lagerfeld in 2004 and Madonna in 2007, to design its products (H&M.com).…

    • 1648 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Supply chain project on H&M

    • 2685 Words
    • 13 Pages

    has a broader view, i.e. adopts the “extended enter- prise” perspective, where the presence of…

    • 2685 Words
    • 13 Pages
    Good Essays

Related Topics