On

earth
 BEST PRACTICES :- LOAD
BUILDING

Comprises constructing a pallet,

loading it and building transportation
routes
Ever changing customer
requirements
 Best practices: Load building

Automate the Process OPTIMIZE THE BUILD STORE-READY OPTIMIZING THE

•Installing an inline CARTONS PALLETS TRAILER
Smaller European stores
print-and-supply Downloading an order Optimize loading
Customization of pallet
operation right before Putting pieces into with specific department based on cube of
palletizing carton or Aisle location of store trailer, whether
•Not feasible for some Loading cartons onto pallets are stackable
manufacturing pallets CONSEQUENCES OF or how load is
processes which Loading pallets into CUSTOMIZATION AND distributed over truck
CHOICES AVAILABLE
require label is trailer in sequence axles
Integrate store’s layout
required at the time of with WMS to direct pick
manufacturing.Use according to location and Load sequencing
robotic palletizer what item to pick based on the
there. 3D image of the load he is temperature zones
•Limit the number of building available on RF and compartments i.e.
device to know the exact
SKUs loaded into an frozen foods in the
location of placing
import container product nose and refrigerated
US following trend with in the mid-section of a
barcodes for store trailer
operations and human
readable information Customizing w.r.t.
including store number
Driver-WMS maintains
,department and specific
CONVERT LTL TO
F/T
•Mandatory now with smaller and
more frequent deliveries
•To reduce shipping costs, control
of inbound logistics and combine
less-than-truckload (LTL)
shipment into full-truckload(F/T)
•Accomplished by getting details
about quantities and delivery
dates from vendors and then use
TMS functionality to arrange for
multi-stop pickups at vendors
located near one another
•Retailers have added 20 percent
profits by implementing this and
is best suited for firms with more
than $150 million a year in sales
as they are going to have the
kind of shipping volume that
make this strategy feasible.
United Colors of Benetton : Supply Chain Innovation
Benetton ……..
•Benetton Group S.p.A. is a global
clothing brand based in Treviso,
Italy.
•The name comes from the Benetton
family who founded the company in
1965.
•The company's core business
remains their clothing lines.
•Casual clothing is marketed as the
"United Colors of Benetton";
there are also a fashion-oriented
"Sisley" division, "Playlife" and
"Killer Loop" streetwear brands.
•To protect franchisees, the
company does not sell online, using
its websites solely for marketing
purposes without listing prices.
•By the year 2000, the group was
selling 160 million garments
 The Operations : The Three
r model

Designing

Designing responsibility were with Benetton

headquarter

Designers worked in three groups

First group takes care of commercial aspects

Second group carry’s out research

Third group responsible for graphics.

 Manufacturing Process -
Vertically integrated Model
Purchasing function
Largest buyer of wool in world

180 suppliers of raw material

Over years it had gone vertical

integration

Reduce lead time ?

By directly sending to production

facilities from suppliers

Olympia's functioned as source of

woven fabric and dye house

Dec 2006 Benetton Operated through

18 factories
12 in Italy and remaining in Europe
and India
Plants in other countries
– Smaller in scale
– Subsidiaries fully partially
owned
– Allocated tasks to
contractors
– Specialized in one type of
product
– Established WIDE, Benlog,
Benair
Plants in Final
other Italy
Customers
countries
Retailing
High Lead Time to Produce
Postponement strategy
 Problems
Benetton Other sweater and
garment producers
• (H&M, Zara, Gap)

2 collections in a year 12 collections in a year

Many internal designers Many consulting

designers
Manufacturers not Manufacturers and
Retailers Retailers
Feedback from Feedback from
customers was low customers was high
High lead time to Low lead time
produce and ship
garments to shop (6-8
months)
High priced Affordable price +
colorful clothes+ trendy
designs
Ways to deal with problems
The DUAL SUPPLY CHAIN
Benetton’s Supply chain
 Benetton’s Production System
Sub contractors Sub
Italy , Tunisia & contractors
Eastern Europe India ,
Hongkong

Benetton Benetton
factories (local) factories
(International)

Direct Logistic
Hub Logistic hub
delivery to
Europe Asia
client

Retailers / Outlets/ Franchisees

Benetton’s Collections
 Benefits of Dual Supply
chain
• Offer new products to its
customers on a
continuous basis
• Able to maintain sales
and profitability even
after season
• Balancing the time to
market and cost
• Better inventory
management
• Faster deliveries
Interplanetary SCM
Haughton-Mars Project:
•Inventory
•Network Modelling
•RFID
•Extra Vehicular Activities Logistics

Push to Mars : Pull the Moon

Risk Pooling
Functional based Classes of Supply