The Supply Chain Model

ZARA & BENETTON

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Introduction

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The Supply Chain Model

• Just – In – Time System (JIT)

• The Manufacturing Process

Walker, Brian and David Bovet, Joseph Martha. “Unlocking the Supply Chain to Build Competitive Advantage.” International Journal of Logistics Management: Ponte Vedra. Vol. 11, Issue 2, pg. 1-8.

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The Supply Chain Model

• Advantages

• Single Manufacturing center

• Parallel manufacturing facilities

• Ignoring Economies of Scale

• Technology and Communications

5

The Supply Chain Model

• Disadvantages and Recommendations

• “Bottle Neck Manufacturing System”

• Use of Parallel Facilities

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Benetton

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Methods to anchor an agile Supply Chain at Benetton

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Benetton a dual customer-based strategy model

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Benetton a vertically de-integrated company

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Radio Frequency ID [RFID]

• An automatic identification method that relies on both storing and retrieving data.

• Technology relies on devices called RFID tags, which are either attached to, or incorporated into products for the purpose of identification

• Provides specs about product’s

– Color

– Size

– Date of purchase

Fig: 2 RFID TAG

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Benefits vs. Drawbacks of RFID• Benefits for implementing RFID

– Accurate knowledge of inventory level

– Reduce the source of errors

– Reduction in labor costs

• Three primary drawbacks for implementing RFID

– Expense

– Privacy issues

– Lack of standards

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Integration & Implementation

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The Push/Pull Strategy

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Conclusion