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

a. Yes, I think  NaaR strategy would work since it is a very unique idea of delivering the kids casuals according to their accurate measurements and their choice of colors, fabrics, and styles. The delivery time is also very less ie. only ten days. It is a very good business idea and has a huge scope of development as nowadays the parents have become quite sensible about the kid's fashion and there are very tailors, who specialize in kids' casual tailoring. This is a new emerging market segment. Moreover, the price charged is quite affordable for the customers, which give it an added advantage ie. to get stylish fitted kids apparel at r reasonable cost.

Retailers play a very important role in their market strategy as the kids are approaching the retailers and asking for casuals as per their demands. The kids are measured by using an electronic device and they tell their choice of fabrics, colors, and styles they want for their clothing. This data is transferred to NaaR clothing inc and the customer gets their delivery, just within 10 days of giving the order. If retailers would not have been there, things would not have been easily possible for NaaR to collect customer orders from distant places.

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

There is a need for a robust supply chain, in the context of NaaR Clothing Inc, as it is a collaboration of many steps that facilitate the whole process. If anyone of the steps does not function properly, the whole system will fail. Firstly, there should be a good relationship and communication between NaaR and other retailers, since if this communication is not there, NaaR will not be able to get any order. There, should a very strong and reliable online web connection, to receive orders from distant places. Secondly, at NaaR, they should have the supply of quality fabrics, color availability, good tailors and other raw materials, that could enable the delivery of the customer specified item within the allocated time. Thirdly, there should be a well-developed system, to keep an account of the records of the orders, their requirements and delivery system. They should also have a quality check of the apparel ie.they are prepared according to the specifications. Fourthly, they also need a good and quick delivery service, to make the deliveries on time. Finally, they need to check whether the customer gets the goods, in good condition, and to control the accounts related to damaged goods, return, lost during transportation.

Due to all the above-mentioned points, NaaR Inc needs a robust supply chain otherwise they will not be able to fully utilize this unique business opprtunity.