Logistics

        [pic 1][pic 2][pic 3]

Contents

Executive Summary        3

Introduction        4

Supply Chain Plan        5

Managing Inventory and Strategic Planning        6

Supply Chain Management in a Globalised World        6

Sustainable Practice in Supply Chain Management        7

The Impact of Information Technology        8

Discussion        9

        9

        10

Conclusion        11

References        13

Word Count- 3370

Executive Summary

[pic 4]

In this report, we will be looking at the supply chain of H&M and how it is able to provide items to different stores across the world within a short lead time and at low prices. H&M have centralised its distribution centre into many different geographic subregions hence stores are replenished almost daily, allowing it to maximise store space through the reduction of back storage. In addition, because H&M’s production is outsourced, in order to keep an effective communication between its suppliers and production team, they have implemented an IT system which interconnects all of its suppliers and stores with the Headquarter in Sweden and Germany, allowing the business to operate efficiently.

Fast-fashion tends to have a bad reputation because they are mainly manufactured in Asia as it is low cost. Hence, H&M have tried to break this image by implementing sustainable practice such as partnering with suppliers to make sure they are looking after their employees, receiving fair pay and having good working conditions; implementing the use of renewable energy in factories; green transportations of products such as rail and ship; using organic cottons to produce its clothes and allowing customers to recycle their old garments. They have also listed the names and locations of their suppliers online for customers track and evaluate.

We will also mention the pros and cons of H&M’s SCM. That is although it has implement quite a number of sustainable practices, there are still a number of issue because it can be difficult to review and evaluate the sheer number of its suppliers.

Hence, there is still issues with the working conditions and factory designs such as those in Bangladesh in which there was a fire recently and child labour found in its Turkey factory. Allowing consumers to recycle their old garments is a great concept but providing them with a voucher for doing so means that they will purchase just as much.