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Case
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Reference no. 608-004-1
Published by:
IBS Center for Management Research (2008)
Length:
19 pages
Data source:
Published sources
Abstract:
The case discusses the innovative supply chain management practices of Sweden-based apparel retailer - Hennes & Mauritz AB (H&M), which enabled the company to gain advantage over other fashion retailers in the world. H&M designed garments centrally at Stockholm, Sweden. These were then sent to the production offices of the company and then to the manufacturers. H&M did not own any manufacturing facilities and all the production was carried out by more than 700 independent suppliers located in Asia and Europe. In the case of garments that were in demand, H&M used the facilities of the manufacturers in Europe. The garments with longer lead times were made in Asia. The garments manufactured at different locations across the world were sent to a central warehouse located in Hamburg, Germany. In every country in which it operated, H&M had a distribution centre. From Hamburg, the garments were sent to these distribution centres, from where they were distributed locally. The garments were replenished every day depending on the demand. With constant replenishment, H&M maintained novelty in its products, due to which the customers visited the company's store repeatedly. The case explains in detail the design, production, distribution and store management processes at H&M. This case is designed to enable students to: (1) analyse H&M's supply chain management practices; (2) study the design, production, distribution and store management processes of H&M; (3) evaluate how H&M, through its efficient supply chain management, was able to bring new designs and trends to the customers in quick time. This case is aimed at MBA / PGDBA students and is intended to be part of the operations and supply chain management curriculum. The teaching note includes the abstract, teaching objectives and target audience, teaching approach, assignment questions, feedback of case discussion, references and suggested readings. It does not include an analysis of the case.
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