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SM Anowarul Alam Rahul Aggarwal

O

Samandeep Kaur Vikas Dhawan
 ½resentation Overview
‡ Structure ‡ Inventory Ratios
‡ Basic Information ‡ Corporate Goals

‡ Supply Chain
‡ Logistics
‡ ½rocurement Cost
‡ Lead Times/Cycle
Time
 Structure
HeadOFFICE(SWEDEN)
HEAD office (sweden)

HR ½RODUCT BUYING
Marketing ION LOGISTIC
FINANCE

37 COUNTRIES

CANADA
SU½½ORT OFFICE
TORONTO VANCOUVER

HR Marketing LOGISTIC FINANCE

RETAIL STORES
 Supply chain flow

Raw materials of
Ff clothing Trucks/Train 700 manufactures Oceanic 37 countries
Asia / Europe Ship yard
Asia/ Hong Kong Air

Trucks Railways

Customer 22 outlets/ stores Trucks Distribution centers

customers
Service Toronto/ vancuvor
 Logistics

‡ Transportation
‡ Demand forecasting
‡ Ware house/ Distribution Centres
‡ Inventory control
(Right set up Replenishment)
 Basic Information
‡
 
H&M doesn͛t own factories. ½roducts are bought from 700 independent suppliers, primarily in Asia and
Europe
‡  
High
Low
‡ ‰  
31 warehouses globally
‡  
CAD 16,665.06 million(2009)
CAD 4084.94 million(2010 first quarter)
‡ ¦
H&M has its largest warehouses and office space under construction in ½oland, (126,000 m2). The
warehouse is to be equipped in automated storage systems.
‡  
240 stores in Europe and Asia
 UANTITATIVE INFORMATION OF LOGISTICS
½rocurement Costs (Local/Overseas-2009)
£ 
£
   £
 

Resource ½lanning 0.004%

Supply Sourcing 0.001%
Negotiation 0.001%
Order ½lacement 0.15%
Inbound Transportation 0.06% 0.001%
Storage 0.03% 0.001%
Handling 0.08% 0.005%
uality Assurance(Tests) 0.009%
Supply Continuity 0.001%
New Sources 0.001%
Average cost - !"#$!"%$

 &' £( !")*$

 Lead times/Cycle times
(It depends on products demand)

 
Lead times:
Sweater 60 ʹ 180 Days 15 ʹ 60 Days
Woven 60 ʹ 180 Days 30 ʹ 60 Days
Knitwear 45 ʹ 120 Days 15 ʹ 45 Days
Cycle times:
Sweater 135 ʹ 195 Days 20 ʹ 65 Days
Woven 135 ʹ 195 Days 35 ʹ 65 Days
Knitwear 120 ʹ 165 Days 20ʹ 50 Days
 Inventory Ratios

Ratio Type Ratios

Vendor inventory ratio 10 out of 100

100 out of 1000

Retailer inventory ratio
1000 out of 1000
 Corporate Goals
‡ ë

Environmental awareness
Respect for nature
Sustainable use of resources
Healthy products
Clean production chain
Green transport
Full compliance with the Code of Conduct
Factory workers able to demand their rights
Compliance with the Code of Conduct upheld by means of efficient management system

‡ 

Provide incentives to employees
Quality improvement programs
Provide more competitive products
Applying new technology
Employees development programs
‡ 3 '' '
Target foreign market
Employee
½rice policy
Sales promotion
The location selection
Analyze local market and competitors
Diversity of selling assortment

‡ 3 '+' 

½rocurements cost of company and number of suppliers
Transportation
Distribution centers of company
Environment awareness
Globalization in business
uality of clothes
‡     
 


Part time 52.7%,Full time employees 47.3%
Permanent contracts 82.1%Temporary contracts 17.9%
‡ 
  

Europe (except Sweden): 76%,North America: 12%, Sweden: 9%,Production Offices: 2%,
Asia:1%
Total number of 76000 employees
‡   


  
22 Production offices
Tenders
Internet and phonic
‡   


 
 
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Communities
Bulletin boards
uestions?

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