BESSI: The Importance of Coordinating Product Development with Supply Chain Planning in the Fashion Goods Industry Maria Caridi, Margherita Pero, and Antonella Moretto
BESSI is an Italian luxury company developing and manufacturing a wide range of leather goods. BESSI distributes its products all over the world through more than 200 direct operated stores and some franchising stores. The metronome of all BESSI’s activities (design, product development, procurement, production, and distribution) is determined by collections, concurrent with the deadline of the fashion week that occurs twice per year. For instance, for the fall-winter collection, orders are collected starting from the end of January to the first week of February, reorders are collected in April and May, and the first products are delivered in the middle of April for the American market. BESSI products are mainly fashion products (new products launched during the collection and not sent to the market for more than one season), and only 30% of BESSI’s turnover is due to carry-over products (products proposed almost identically for more than one season). The case describes in detail the product development process for both product categories. BESSI’s supply chain is composed of Italian craftsmen, which are almost all located near BESSI. They are small and captive suppliers. Some of them buy the material themselves, manufacture the products, and sell them to BESSI. Others manufacture the products starting from materials that BESSI buys and sends to them. The material procurement lead-time is about 7 weeks, and the production lead-time is 7 weeks. Thus, the overall lead-time of the product is 14 weeks, independent of the kind of suppliers. Three kinds of planners help plan production and procurement: • Finished product planners: they are autonomous, and they plan finished product suppliers. • Material planners: they receive the demand forecast from the Style...
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