FAST RETAILING

Fast Retailing

Fast retailing

Supply Chain Model

Among all South East Asian countries, Indonesia has been a potential market for Fast Retailing for a long time. Fast Retailing should position itself in its supply network for its proposed Indonesia's markets by considering SPA model and Porter's value chain and value network model.

SPA Model

The first UNIQLO store in Indonesia, to be called the UNIQLO LOTTE Shopping Avenue Store, (http://www.uniqlo.com/id/) UNIQLO will establish an SPA (Specialty store retailer of Private label Apparel) model while entering the Indonesia's apparel market, encompassing all stages of the business operations from design and production to final sale.

SPA model of UNIQLO for Indonesia's market

Indonesia's market categorizes themselves into three department that are planning, production and sales. Market will begin by continually researching on the latest fashion and lifestyle trends specifically related to the market of Indonesia. Research and development designers will meet with the representatives from the marketing, merchandizing and materials development to discuss the concepts for launching of apparels in upcoming seasons for Indonesian market.

For supply chain network to be effective, the inventory control department of UNIQLO will maintain the optimum level of inventory of its stores in Indonesia by monitoring the stock and sales on weekly basis and delivering of necessary inventory and new products for fulfillment of product orders. UNIQLO will conduct promotional campaigns in the market of Indonesia for its core products. It will advertise and convey its product message to the consumers of Indonesia through TV and promotion of latest apparels in weekly flyers edition of Indonesia's newspaper (Fast Retailing, 2013).

Porters Value Chain and Value Network Model

Fast Retailing will position itself in its supply networks for its proposed Indonesia's market by considering Porters value chain and value network model to identify how UNIQLO will create value in terms of undertaken activities in the market of Indonesia. Value chain analysis will help UNIQLO to map out the supply chain network strategy within and around the organization and relates them to analysis of the competitive strength of the organization. It will help UNIQLO to identify each particular activity of supply chain and its value addition in Indonesia's market (Recklies 2001, p. 1).

Porter's Value Chain Model

Porter classified the value chain model in to two types of activities such as, market and product related activities and support activities that are related to infrastructure, human resource management, technology and procurement (Saha, 2011). While expansion to Indonesia's market, Fast Retailing will have following product related activities

Inbound Logistics

For production and development activities, Fast Retailing needs input as goods which are received from the suppliers. Inbound logistics of Fast retailing will refer to all the activities related to receiving of goods from the suppliers, decisions about the transportation scheduling, storage of goods as inventory, inventory management and making the inputs ready to use for the developing of end products (Magretta 2011, p. 63-68).

Operations

The operation activities of Fast Retailing will include the development activities and production process of apparels and other transformational activities.

Services

This will include the customer services that Fast Retailing will ...