Supply Chain Management Projects

8/9/2019 Supply Chain Management Projects

1/14

HENNES & MAURITZ1

2010SM Anowarul Alam Rahul Aggarwal Samandeep Kaur Vikas Dhawan


2/14

Presentation Overview

Structure

Basic Information

Supply Chain Logistics

Procurement Cost

Lead Times/CycleTime

Inventory Ratios

Corporate Goals


3/14

Structure

Head office (sweden)

37 COUNTRIES

SUPPORT OFFICE

HR PRODUCT

IONBUYING

HEAD OFFICE(SWEDEN)

CANADA

TORONTO VANCOUVER

HR Marketing

LOGISTIC

LOGISTIC FINANCE

FINANCE

Marketing

RETAIL STORES


4/14

Supply chain flow

Ff Trucks/Train Oceanic

Air

Trucks Railways

Customer Trucks

Service

Raw materials of

clothing

Asia/ Hong Kong

37 countries

Ship yard

700 manufactures

Asia / Europe

customers 22 outlets/ storesDistribution centers

Toronto/ vancuvor


5/14

Logistics

Transportation

Demand forecasting Ware house/ Distribution Centres

Inventory control

(Right set up Replenishment)


6/14

Number of Suppliers

H&M doesnt own factories. Products are bought from 700 independent suppliers, primarily in Asia and

Europe

Inventory Levels

HighLow

Warehouses

31 warehouses globally

Revenue

CAD 16,665.06 million(2009)

CAD 4084.94 million(2010 first quarter)

Developments

H&M has its largest warehouses and office space under construction in Poland, (126,000 m2). The

warehouse is to be equipped in automated storage systems.

Expansions

240 stores in Europe and Asia

Basic Information


7/14

QUANTITATIVE INFORMATION OF LOGISTICS

Procurement Costs (Local/Overseas-2009)

COST CATEGORY LOCAL OVERSEAS

ResourcePlanning 0.004%

Supply Sourcing 0.001%

Negotiation 0.001%

Order Placement 0.15%

Inbound Transportation 0.06% 0.001%

Storage 0.03% 0.001%

Handling 0.08% 0.005%

Quality Assurance(Tests) 0.009%

Supply Continuity 0.001%

New Sources 0.001%

Average cost - 0.18% 0.17%

Total Procurement Cost - 0.35%


8/14

Lead times/Cycle times(It depends on products demand)

Items Sea Air

Lead times:

Sweater 60 180 Days 15 60 Days

Woven 60 180 Days 30 60 Days

Knitwear 45 120 Days 15 45 Days

Cycle times:

Sweater 135 195 Days 20 65 Days

Woven 135 195 Days 35 65 Days

Knitwear 120 165 Days 20 50 Days


9/14

Inventory Ratios

Ratio Type

Vendor inventory ratio

Retailer inventory ratio

Ratios

10 out of 100

100 out of 1000

1000 out of 1000


10/14

Objectives

Environmental awareness

Respect for nature

Sustainable use of resources

Healthy products

Clean production chainGreen transport

Full compliance with the Code of Conduct

Factory workers able to demand their rights

Compliance with the Code of Conduct upheld by means of efficient management system

Productivity

Provide incentives to employees

Quality improvement programs

Provide more competitive products

Applying new technology

Employees development programs

Corporate Goals


11/14

Key success factor

Target foreign market

Employee

Price policy

Sales promotion

The location selectionAnalyze local market and competitors

Diversity of selling assortment

Key performance indicatorsProcurements cost of company and number of suppliers

Transportation

Distribution centers of company

Environment awareness

Globalization in business

Quality of clothes


12/14

The current human resource of companyPart time 52.7%,Full time employees 47.3%

Permanent contracts 82.1%Temporary contracts 17.9%

Employees per region (%)Europe (except Sweden): 76%,North America: 12%, Sweden: 9%,Production Offices: 2%,Asia:1%

Total number of 76000 employees The channels of communication with suppliers

22 Production offices

Tenders

Internet and phonic

The channels of communications with customers

Web site

News groupCommunities

Bulletin boards


13/14


14/14

THANKS

Questions?

Supply Chain Management Projects

Documents

Transcript of Supply Chain Management Projects