Question

Williamson is planning to set up a new brand called Exotic. As the brand concept is not yet fully clear, there is also an open question in how to set up the supply chain. Currently it is known that there will be now cold chain required. In addition there is a push by management to set up a product concept that has a high shelve live. Some competitors are not only bringing other products into the market, they were also able to establish new supply chain channels. To understand the future requirements, as well as the potential supply chain designs, management has asked you to consider the concept of a dynamic supply chain alignment (John Gattorna, 2013) to provide the following insights:

1. Map the supply chain model of Inditex and work out the different supply chain types they apply. In addition work out the strength and weaknesses of this concept in relation to their business model.

2. Map the supply chain model of Marks & Spencer and work out the different supply chain types they apply. In addition work out the strength and weaknesses of this concept in relation to their business model.

3. Provide a criteria list, which under which circumstances some of the fashion industry supply chain solutions are applicable to the food industry as well. Currently marketing is considering a product concept with eight different flavors and four different packaging sizes. A bundle of 6 big packaging’s, a single big packaging, a small pack and a convenience pack. Du to different income pattern not all packs are sold in all regions.

Your direct manager was working in his previous assignment in the fast fashion industry before joining Williamson. During this time he was impressed by the different supply chain concepts used by Inditex (Zara) and Marks & Spencer. As he is not sure if one of these supply chain concepts could be applied to the food industry as well it is your task to evaluate the topic further. What are the general concepts and ideas applicable for the food industry and for Williamson’s exotic brand? It is your task to analyze both, the Inditex and Mark & Spencer supply chain and give some recommendations for the Exotics BU.

Answer 1

1. The supply chain model of Inditex is very unique and rarely used by others. They roll out their designs every two to three weeks and that too a very short range of designs. Then they take feedback from the consumers and bring small changes to the existing designs to introduce a new set of designs in the next couple of weeks. They make this possible by having a local manufacturing plant in every location they have their outlets. This helps them adapt to the local culture, and also keeps the local market and consumers always interested with new designs coming in readily.

2. Similar to Inditex, Marks & spencer also follows a responsive supply chain policy. They also make sure the manufacturing plants are near to the store or outlet locations, so that the designs and shipments can be made readily based on customer response and feedback and thus their designs are also introduced in the market in small batches which allows them flexibility to work on customer feedback. Along with this they also focus on efficient supply chain policy, always trying to keep the inventory to minimum at retail stores, so that they can make use of retail stores being near to manufacturing plants, and quick relay of information can help them refill the retailers instantly.

3. The food industry also works in a similar format wherein they work in a responsive supply chain policy, making use of customer feedback to make changes to food quality, packaging, delivery and other aspects of the industry.

The exotic brand can implement these strategies of Inditex and Marks and spencer and introduce smaller menus and in different packaging patterns and styles, and than act responsive and make changes as per customer feedback readily to make sure, they are serving what the customer loves, rather than serving what they would love their customers to have.