Upload
baldwin-cole
View
214
Download
0
Embed Size (px)
DESCRIPTION
Design/ Production etc StoreCustomer 5 fingers on customer & 5 fingers on suppliers
Citation preview
Design Production Distribution
Customer
StoreMgr
DesignerBuyer
Supplier
Store
Women
Men
Kids
• CONSTANT XCHANGE OF INFO • 3 independent Bu- implications?
Design/Production
etcStore Customer
5 fingers on customer & 5 fingers on suppliers
Close communic-ation loop
Stick to a rhythm
Leverage Your
Assets
• Approach/ payoff
Philosophy
• You need to have 5 fingers touching the factory & 5 touching customer
Capability
• Zara can design, produce, deliver in 15 days flat.
Payoff
• Collects 85% of full price vs 65% competition
• 2001
Inditex
BenettonH&M Gap
0
2
4
6
8
10
12
% Net Margin
% Net Margin
1991 20030
500100015002000250030003500400045005000
Sales E milProfit E mil
Simpler products outsourced(sweaters)
Complex Products in-house (Women’s suits)
Inventorydown
Profits up
Revenues up
Payoffs