Supply Chain and Globalisation - Case study of Benetton

Contents

Competitive and strategic priorities1

Supply chain and contribution to customer value1

Structure of Supply Chain5

Organization involved in Each Stage6

3 Aspects of Supply Chain7

Reason to adopt these Strategies8

Conclusion9

Supply Chain and Globalisation - Case study of Benetton

Competitive and strategic priorities

The competitive and strategic priorities are controlling the value chain of the business by horizontal and vertical integration. They reduced the costs by outsourcing the business to the suppliers and opened franchises in order to sell the products to the people. The pricing mechanism was also strong across the value chain systems. The vendors were operating at full capacities and the lower prices were obtained from them while providing them enough business to sustain. The products sold across variety of retailers and they were not restricted by any geographical limitations. The fashion market has been considered as the most risky and is one of the most volatile markets across the globe. Benetton has focused on providing products and services to the people in a short span of time. Basically strategies have been adopted in order to swim across the stagnant markets of Europe.

Supply chain and contribution to customer value

The supply chain is defined as the integration of planning and management of all activities involved in outsourcing and procurement, conversion, and all Logistics Management activities. In essence, the entire management integrates supply and demand within the company and through various companies. In this sense, the management of the supply chain encompasses the entire value creation chain, from procurement to shipping materials through manufacturing and assembly. The unattended route leading to increased shareholder value passes through the supply chain. It is not just to cut costs, but proper management of the supply chain often astonishingly reduce long-term costs. The excellence of the supply chain contributes to shareholder value by controlling the pulse of the firm: the essential flow of materials and information from suppliers across the enterprise to reach customers.

For the supply chain to create value are three key points:

Revenue growth

Cost reductions

Low asset utilization

If these three objectives materialize supply chain, are a very effective recipe to increase the economic benefit and thus the creation of shareholder value. Effective management of the supply chain means to promote integration between departments or functions to give maximum availability of product with minimal cost and minimal capital investment. This will increase the economic benefit because it helps to generate more revenue with lower capital costs and lower. Increased economic benefit contributes to increased shareholder value. Companies invest repeatedly since the mid-1980s in improving the ability to control their chain of "upstream" value: development new products-shopping-Production-Logistics optimize costs and increase performance. These integration and optimization efforts have enabled many companies improve their service levels while reducing costs. Similarly, they are attached, since the mid-1990s, streamline the management of their supply chain "downstream" value: Marketing-Sales Service to better adapt their offerings to the changing needs and behaviours of different customer segments, to provide these offers through the most relevant channels, to properly control the ...