SUPPLY CHAIN MANAGEMENT

Supply Chain Management

Supply Chain Management Report.

This paper is based on supply chain management. This paper presents answers to two questions. The first question is based on a case study in which, I have to propose a supply chain management plan for Primark, a fashion designing retailer Primark which is to sell her products to Peacock, the buyer Primark that has set some important criteria for Primark's products. Second question includes theoretical concepts related to supply chain.

Q1: Selection of Suppliers and Implementation of Supply Chain Management Plan

Primark, which is a major British fashion design retailer, is interested in enhance control over the supply and quality of the finished products through competitive pricing strategy, by meeting Peacock's quality criteria and expanding their existing customer base The retailer (Primark in this case) can reduce order lead-time as well as inventory levels (Ellram, 2006, 10). On the other hand, the spinning mills can receive a transfer of advanced production know-how to enhance their production efficiency.

Primark is the major fashion retailer for Peacock Fashion Ltd. Primark has assisted Peacock to source cheap but reliable raw material, manage inventories and deliver products, through a just-in-time system (Fisher, 2008, 83).

Consumer demand

Changes in consumer lifestyle and consequent demands for newness have exerted pressure on the established supply chain format. As we have moved into the twenty-first century, retailers like Zara and H&M into the UK retail market, have shifted the focus of competitive advantage from price towards fast response to changing fashion trends and consumer demand.

The contemporary fashion industry remains highly competitive, with additional pressure for fashion companies to compete not only on price, but also their ability to deliver newness and “refresh” product (Christopher et al., 2004). Frings (2002) notes that the fashion industry relies on the constant changing of product, correlating with consumer change - their change of lifestyle and need for difference. Socio-cultural changes are creating a faster pace of living and as Sproles and Burns (1994) advocate, mass society is orientated toward continuous change and progress. Consumer needs are then changing at a much more frequent pace and the women of today are revising their wardrobes more often, than in previous years (Mintel, 2003), even within a single season.

Mass communication allows the consumer access to increased information surrounding the latest trends or styles. The obsession with celebrity has increased as the number of weekly glossies, e.g. Grazia has, fuelling consumer demand for the latest look or product at a faster pace. Alexander (2003a, b) supported this when noting, “ … they want to be able to buy things the celebrities are wearing or … trends that they've seen from the catwalk … ”, and more importantly, consumers want it immediately.

Popular culture has a major influence on shaping fashion trends. Consumers are influenced by music, film, television and other media. There has been a significant shift in the way consumers are influenced when purchasing fashion product. Fashion trends are moulded by culture, for example what is happening on the street, in clubs, ...