Month: November 2010

In class 16, we have learned the importance of getting the product to the right place at the right time in the right amounts – ensuring efficient supply chain.

In the fashion industry, fast-fashion retailers are those who acknowledge that designs transports from catwalk to their stores in the fastest time to capture current trends in the market. In this fashion retail revolution, the company whom has become almost synonymous with this term is Zara.

Zara is a vertically integrated retailer whom controls most of the steps on the supply chain, from designing to production to distribution. Compared with a six-month industry average of developing a new product and getting it to the stores, Zara accomplishes this in a remarkable pace of three weeks. Their marketing strategies create the desire for consumption of new designs as close as possible to the point of creation – promoting it as something fast, low price, and disposable.

Successful supply chain management was evident as they have:

• Maximized added value
• Reduced total cost across entire trading process
• Focused on speed and certainty of response to the market

It is crucial for fast-fashion retailers, like Forever 21, to accomplish these in order to compete effectively at both the local and global level.

Importance of Supply Chain Management

Environmental concerns in recent years seem to have pushed corporations onto the “going green” bandwagon, and it certainly has been quite the buzz these days – we even talk about it in our business fundamentals class!

It has been said that every trend or fat eventually fades away, but this seems to be an exception.

Many companies are still launching environmentally friendly programs to promote their support in this trend, and have discovered its lasting profitability in this economy.

Our well-known ALDO footwear company had launched its Next Step program two years ago aimed at going green and becoming part of the fad. They created this:

A new, clever shoebox design that incorporated a handle into the box, which eliminated the need for customers to use a bag to take their purchases home. They called this The Box Is The Bag.

PUMA, not falling behind, also reinvents their shoeboxes – celebrating their new Clever Little Bag:

Verdantix, a leading research firm, predicted a 50% growth in the US sustainable market in 2014. Also in UK, there will be an increase in spending on sustainability projects from the current $5.3bn to $8.4bn in 2013. Governments are also headed toward this direction, easing the operation of sustainable companies. Our knowledge of companies’ environmental and social performance is increasing exponentially – and it’s knowledge sharing that will continue to keep sustainability issues firmly in the minds of consumers and marketers.

Profitable Sustainability

I remember when I used to tug on my mommy’s shirt and whine with annoyance for those delicious, colorfully sprinkled Purdy’s ice-cream. It was one of the things that made me hyped up about going to the mall. The lady serving us always had the smile that captivated your heart and gave you the warm fuzzy feeling – displaying her unconditional love for chocolate and love for every customer. It simply makes the ice-cream that much sweeter.

I learned that Purdy’s had been recognized as one of Canada’s 50 Best Employers for the second year in a row. Run by the Flavelle family since 1963, they have upheld the traditions of its founder and continue to demonstrate an unmatched passion for chocolate. They have clearly established a well-defined organizational culture, placing employee satisfaction as their top priority.

Anyone could do the jobs in a typical Purdy’s retail store – scooping ice-cream, ringing the cash register, etc. But to do it with passion and love is on a whole new level.

In class 14, we have been presented with Zappo’s impressive handling of employees. They are able to motivate employees by putting them first. They realize the critical role of frontline employees, as they are the ones providing customer service.

Purdy’s Chocolate was able to capture this essence, which is evident in their success as one of the leaders in the chocolate industry.

Purdy’s Chocolate’s website