Fast Moving H&M: An Analysis of Supply Chain

Management
Submitted By:

Group 8 - Section A

Name Roll No.

Raja P P40035
Rashi Shah P40036
Vijay S P40052
Rajat Roshan P40142
Vipin Yadav P40161
Parth Makwana P40190

Why we have selected this supply chain:

A supply chain in its most basic form consists of all the agents responsible for fulfilling a
customer request. A customer needs a particular product and it is the responsibility of the
supply chain to make the product available in best possible form at the right time. All the
agents of the supply chain, including the customer, are interconnected through a regular flow
of information, products and funds among them. Thus, optimizing of supply chain results in
supply chain surplus, which benefits all the agents of the supply chain. Apart from generating
supply chain surplus, efficiency and effectiveness of supply chain also helps in bringing the
operational cost down and also impacts revenue positively.
The decision to choose Hennes and Mauritz supply chain can be postulated as:

 As H&M is reckoned as the world’s 2nd largest clothing industry, we selected this case
to study its SCM practices and performances in the fast-moving fashion industry.
 Dual integrated supply chain, where in the two suppliers produce similar products in
different proportion for the company. These two suppliers are based in Asia and
Europe.
 Asian suppliers correspond to the lean production system with 60 % of the production
and European suppliers correspond to agile production system with rest of the
production. Thus, H&M have devised their own leagile production system which
brings in the demand and cost benefit.
 Efficient demand forecasting done to meet the requirements of customers with better
inventory management system.
 Integration of technological capacities like big data, automation, AI, etc. at multiple
stages which enhances efficiency at multiple stages of supply chain.
 Combination of centralized and decentralized distribution system.

Expected outcomes
  To identify and understand frameworks used in the Supply Chain
 To check responsiveness of the supply chain by the supply chain responsiveness
matrix, a tool that is used to analyse inventory and lead time within an organization.
 Identify and learn about the type of supply chain in the company, production method
used for optimization (lean, agile etc.) and get in depth idea of the manufacturing
process.
 Understand in detail, about transportation, warehouse and inventory management by
the company.
 Identify strengths and weaknesses of supply chain management of the company and to
try and brainstorm to apply the concepts learnt for better supply chain practices.
 Also, to identify the role of information technology and the modern IT tools used by
the company in its processes.
Our further proceeding:
The case can be proceeded by incorporating the SCM concepts taught in the classroom such
as follows

 Analysing the fit of 7 principles of supply chain management.

 Identifying the nature of current supply chain and comparing it with the right supply
chain methods for the clothing apparels
 Analysing the case in terms of various supply chain models like Supply Chain
Operations Reference (SCOR®) model
 Checking the nature and importance of E-supply chain management in terms of this
case
 Also, we will try to compare the case with other contemporary data in terms of their
direct and indirect competitors.
After analysing the case along with above points, few feasible alternative solutions will be
recommended by incorporating the classroom leanings to improve the existing supply chain
in terms of both quality and quantity