Question

Case study: JIT in Action

A new phenomenon called ‘Apparel on Demand’ is slowly making its presence felt. It is an extension of JIT linking retailers and manufacturers for a just-in-time responsiveness. NaaR Clothing Inc., promoted by a young management graduate has recently ventured into the business of making reasonably priced custom kids wear. It has collaborated with many stores selling kids wear. In the stores, kids are electronically measured and information like color, fabric, style, etc., are recorded. The information reaches the NaaR manufacturing facility at Ahmedabad almost immediately through a state-of-the-art information system. NaaR guarantees delivery of the custom kids wear within 10 days. With the growing acceptance of casual kids wear among the kids in India, especially in the urban areas, the market for casual kids wear is growing at a fast pace. NaaR with its unique business model hopes to garner a significant share of this market. The promoter of NaaR along with her top executives is confident that their concept of JIT casual kids wear would work. Source: http://himadri.cmsdu.org

Answer the Following Questions:

1. Do you think NaaR’s strategy would work? Why or why not? What is the importance of retailers in its business strategy?

Comment on the necessity of a robust supply chain in the context of NaaR Clothing Inc

Answer 1

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Do you think NaaR’s strategy would work? Provide justifications to your answer.

Yes, its strategy would work. Firstly, the market for women’s jeans is growing rapidly, meaning the demand is good. Secondly, who wouldn’t want to have a pair of custom jeans made according to their body size,choice of color,fabric and style at a reasonable price? Women come in all shapes and sizes.The conventional stores may not be able to provide jeans that fit well.Shopping for jeanscan be a tiresome and frustrating experience.Thirdly,the advent of the electronic body measurement,the internetandthe delivery system are settinga path for the system to work which could not have been achieved in the past.

Comment on the necessity of a robust supply chain in the context of NaaR Clothing Inc

A robust supply chain is necessary in the context of NaaR Clothing Inc.

i. Connection -- NaaR musthave a reliable internet connection. In case there is an interruption,they should be able to collect and store the information and transmit at a later stage as soon as possible.

ii. Order Processing System -- NaaR must have a very reliable computerized system that can process high demand.

iii. Raw Material Suppliers -- NaaR should also maintain more than one suppliers for each material in order to cope with the demand and to avoid uninterrupted supply.

iv. Logistic Provider -- More than one logistic providers i.e. courier, transporter have to be in the supply chain to maintain reliability of delivery since the promised 10 days delivery is one of the selling points.

v. Quality Control -- NaaR must have a QC system in place throughout the entire supply chain. From raw materials, manufacturing to delivery, it must maintain the quality.

vi. Policy Policy concerning return, lost shipment, money back guarantee, etc. has to be in place.

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