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HENNES & MAURITZ1
2010SM Anowarul Alam Rahul Aggarwal Samandeep Kaur Vikas Dhawan
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Presentation Overview
Structure
Basic Information
Supply Chain Logistics
Procurement Cost
Lead Times/CycleTime
Inventory Ratios
Corporate Goals
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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
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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
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Logistics
Transportation
Demand forecasting Ware house/ Distribution Centres
Inventory control
(Right set up Replenishment)
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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
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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%
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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
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Inventory Ratios
Ratio Type
Vendor inventory ratio
Retailer inventory ratio
Ratios
10 out of 100
100 out of 1000
1000 out of 1000
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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
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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
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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
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THANKS
Questions?