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SCM @ World Co., Ltd

Peeyush Pandey
Assistant Professor
IIM Rohtak

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 CASE ANALYSIS

• Established on January 13, 1959 as a clothing wholesaler specializing in knit

garments

• A leading Japanese women’s fashion apparel company

• World has divided its brands into wholesale brand and SPA (Speciality store
Private-label Apparel)

• SPARCS system (Super, Production, Apparel, Retail, Customer Satisfaction)

• SPARCS process enabled World to Monitor sales trends and focus on

consumer demand to maximize efficiency

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 Manufacturing facilities

• Network of 20 domestic vendors

• 2-6 weeks of lead time

• Close collaboration (SPARCS)

• Cross trained workers

• Small Batch size (40- 60)

 Inventory

• Hold Raw material in advance

• Reserve production capacity

• Less inventory at retail store

• Less variation in size

 Information Systems
• Implemented in 1993 and updated in 1995

• Recorded data at Store/SKU level of Inventory that entered and exited the
stores

• All employees had online access to both sales and inventory data

• All data had to be entered manually by sales staff

• Gross data error at Untitled shops and stores were within +-20 pieces out
of 2000 pieces per store

• Information quality compromised two times a year when the sales staff
were busy
 Demand Forecasting

• Initial demand forecast for each product, before sales, was derived in two
stages
1. First stage: aggregate demand forecasts

a) Distribution Side

b) Category Side

2. Second stage: ranking Individual SKUs (Obermeyer Method)

3. Material Commitments

4. Initial Production Commitment

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Thank You