Fashion Industry as an Infinite Product - Essay Example

? Critically Evaluate The Best Practice In Global Supply Chain Management At Two Firms Of Your Choice In The Fashion Industry. Course: Tutor: Date: Introduction Fashion industry is an infinite product that is being used in the present age. In essence, the rise of global capitalism, over and above, the development of factory system of production, which incorporated retail outlets through mass production especially on the standard sizes and were later sold at fixed prices (Kreitner 2009). Of importance to note is that the fashion industry first began in Europe and America. At present, fashion industry is an international and highly globalised industry where clothing could be premeditated in one country, contrived in another country and end up being sold globally (Choi 2012). In relation to this, two fashion industries: Gucci and Marie Claire have gradually grown to this level. They are among the renowned fashion industries that deal with shoes, belts, beauty products, hand bags among other fashionable products (Manlow 2007). During the manufacture of these products, a particular strategy is used that entails six principle procedures that incorporate global supply chain planning, global supply strategy and configuration, global sourcing, global distribution, global logistics and managing sustainable global supply chains (Cetinkaya et al 2010). Global Supply Chain Planning Distribution centres Gucci has one of the best distribution centres complete with everything that is necessary, the distribution of Gucci is designed around the needs of Gucci. Unlike other fashion retail chains such as Marie Clare, Gucci has different products for different regions. The distribution centres are designed to meet the needs of the Gucci. Fashion industry is very competitive and time and efficiency is everything if a firm has to be competitive and successful in this industry. To be able develop a way to compete in this way, Gucci has come up with a very important supply chain strategy. This strategy revolves around two main important things as follows: Incorporating the suppliers to have a compact value chain Gucci is a global fashion retailer and this means that Gucci has created a system where it is able to meet the global demand for is goods without missing an opportunity to sell to a ready market. To achieve this, Gucci has been able to come up with ways in which to make sure that they are able to have a compact supply chain. This means that Gucci has merged its businesses with suppliers to ensure that it is able to control the suppliers. As Cook (2011) point out, keeping the supplier close to the business is becoming a common supply chain management strategy because once it eliminates one of the competitive issues that Michal Porter (2008) identified in his model of five competitive forces. This is the force of bargaining power of suppliers. Gucci, unlike Marie Clare has identified that keeping the suppliers close is a major way of ensuring an efficient supply chain that can be used to make sure that better services are given to the customers. Global outsourcing This difference between Gucci’s supply chain and Marie Clare’s supply chain may be as a result of different business models of the two businesses. For example, Gucci has a very big range of products with some products being more popular in different markets and unpopular in other markets. This means that the supply chain for a firm like Gucci most take consideration of this right from the suppliers through the distribution centres to the final customer contact. Gucci has also made use of global outsourcing as a way to make it more efficient for Gucci to satisfy the needs of the customers efficiently and cost effectively. According to Schary et al 2007, at present competition globally is entirely stiff. Individual companies no longer compete as autonomous entities, but as supply-chains networks. In essence, companies no longer compete in terms of brand versus brand, but they compete in terms of suppliers Brand Company versus suppliers Brand Company. At Gucci group, the global supply chain planning gives an opportunity to capture the synergy that incorporates intra and intercompany integration and management. It involves total business process while developing better and a stronger relationship with other members of the supply chain. Apparently, it comes out as one of the top performing in the supply chain planning as it inhibits three distinct qualities: adaptability, agility and alignment. Adaptability enables Gucci group adjust to market structures and changes in environmental conditions that is prevalent during supply. Moreover, it is agile enough to take action to abrupt changes in demand or supply. Through this, it is able to align the interest of those who are supposed to be in the supply chain planning to ensure that there is the maximization of performance (Sinha 2009). It is worth noting that the best companies in the world have created supply chains that are responsible for responding to sudden and the unpredicted changes in the markets. In light of this, Gucci group as a designer firm in the world should ensure that its supply chain is well planned in respect for its customers to allow a good supply chain. On the other hand, Marie Claire fashion industry is a bit diverse because it deals with creativity, desire and aspiration. In essence, Marie Claire ensures that its global supply chain planning revolves around establishing a way in which customers can be supplied with unique items that are expensive, personalized, and those that reflect their taste, as well as, their status (Marie Claire 2013). As a fashion industry, it ensures that it provides products such as clothes that meet the need of the customers at specific points. Through this, industry is able to define, reflect, over and above, influencing colours, styles and textures that are available in numerous outlets. Verma and Boyer 2010 argue that, in light of the supply chain planning, the company ensures that it prepares for challenges such as prediction, making and receiving orders from the designated outlets for customers in advance. Of importance to note is that, technology has continuously driven innovation in the fashion industry in a dynamic force. Never the less, both industries: Gucci and Marie Claire have a strong global supply chain planning that enables them to remain top in competition and handle their customers in the preferred way in reference to the product that they have put in the market. Being able to plan on how the supply chain will flow strengthen the relationship between the company and its customers. Additionally, it is easier to identify the demand supply curve that is related to the overall supply chain and learn the environmental conditions that are present at various part of the world (Vershinina et al 2010). For instance, Gucci group that supplies clothes for winter should be able to understand when winter falls in terms of supplying the products to the potential customers. Conversely, the Marie Claire that deals with beauty products should be in a position to understand market behaviour in terms of supplying the products. Global Sourcing Due to economic down turn, as well as, increasing pressure on corporate profitability, there is a combined effect on efficiency in companies and organizations. Hence, global sourcing incorporates domestic and offshore outsourcing and shared services solutions, which is an effective way of attaining strategic operational gains and cost savings. Research have shown that global sourcing is drive by cost savings, accessing qualified personnel, enhancing efficiency through redesigned business processes and competitive pressure (Griffin 2012). In light of this, Gucci group as a fashion brand are continuously blazing new paths in the supply chain that includes greater quality, innovation, control, and improved quick response to risk that are bound to occur and increased emphasis on market sustainability. One particular case entails the unveiling of the latest instalment of their ‘Forever Now’ theme, which will ensure that the Monaco Royal Charlotte Casiraghi in four campaigns that is expected to be shot by some of the famous photographers over the past two years. Moreover, Gucci is renowned for producing various countries with orders from buyers as per their requirements especially for Japanese buyers; it owns the Bangladesh Footwear leather good hub and exports as the biggest company in Bangladesh (Gucci 2013). Thus, it is able to source all types of leather products as per the customer’s choice in the target price. This works hand in hand with responsibility of sampling, inspection of quality when production is taking place, valuing orders, over and above, the handing of timely deliveries. On the other hand, Marie Claire fashion has laid it concentration on enhancing efficiency through the redesigning business processes (Marie Claire 2013). In essence, the global sourcing entails ensuring that different business processes are redesigned to cater for the market demand of its various products. One particular case is when industry had redesigned the marketing tactics in relation to the different products of beauty products that they continuously unleash in the market. Moreover, the industry ensure that they have placed products that are customer satisfying thus, been in a position where they can handle the competitive pressure globally (Lea-Greenwood 2006). Apparently, Gucci and Marie Claire have continuously upheld global sourcing in different dimensions. Basically, the two companies have embraced the concept of ‘one company’, which dictates that companies run more effectively when there is organised development, good administration irrespective of whether it has different stations all over the world with much consideration being on expertise per country, cost levels and risk (Sinha 2009). Global Distribution Global distribution is the process that coordinates and integrates accomplishment in regard to requirements of a combined force in terms of the working force in a particular company all over the world. The system could be centralised depending on the type of company. In most cases, global distribution is correlated to computer and is mostly done through advanced technology that is being witnessed globally (Cooper 2007). In light of this, Gucci products are exclusively sold through a strong network of close to 400 boutiques that operates directly through e-commerce as one of the valuable complementary channels in business that have continuously being used all over the world (Gucci 2013). Additionally, its products are distributed through an identified number of franchisees, certain department and outlets. In fact, most of these outlets and stores are situated in expensive high street so as to attract affluent customers. They have windows that display the products provocatively with more appeals to potential customers to browse online to see more products that the company produces making it easier to purchase the products online and reaching a far greater target audience (Griffin 2012). On the other hand, global distribution of Marie Claire entails the aggressive sale of its magazine that is one of the most sorts after magazine in Paris and several other parts of the world (Marie Claire 2013). Through this magazine, the fashion firm is able to market the rest of its products once the potential customers purchase the magazine. Never the less, the firm is continuously gaining momentum on the online shopping as compared to the old way to having to purchase on magazines on the street to get information on other products such as clothes and shoes. It is to be noted that its global distribution cannot be compared to Gucci. Cetinkaya et al 2010 argue that in order to remain competitive in the market, global distribution must be effectively used as it provides a perfect market place for the products being manufactures. Moreover, this distribution system will enable Gucci and Marie Claire make more online sales, over and above, granting dynamic packages to its potential customers (Oz 2009). Meanwhile, apart from having a good distribution in terms of connection and internet, it is also important that as some of the leading global companies to widen the distribution products to as many countries as possible depending with the target audience. This ensures that those who are incapacitated in regard to technology are given an opportunity to shop manually. Managing sustainable global supply chains It is apparent that globalisation has greatly affected how organisations are managed strategically and operationally. Nevertheless, one outstanding outcome of globalisation has been the way production of goods has shifted from the traditional distribution strategies to new and technologically ways that has helped in lowering the cost of production, thus increasing organisation’s productivity. However, new challenges have been reported to emerge as a result of the new technologies involved in the supply chain management (global supply chains) (Verma and Boyer 2010). The most notable challenges involve poor quality, inconsistency, and supply disruptions. In addition, external challenges such as cultural, legal, and political issues have also been cited to have a great share in impending supply chain management. Besides, environmental challenges such as waste and emissions reduction, and recycling have also been a great challenge on how global supply chains are managed (Verma and Boyer 2010). In another dimension, it is apparent that issues such as corruption have also played a key role in determining organisation’s supply chains. Nevertheless, organisations have developed mechanisms through which such challenges can be overcome. Companies that fail to address such issues puts themselves at the risk of operational problems and damage of their reputations. In another dimension, such issues have been argued to have contributed to organisations downfall especially on financial performance. This is linked to the failure by the public to trust the organisation in delivering quality and reputable goods and services to the customers. Gucci has been considered as one of the organisations that have adopted new mechanisms of evaluating the most notorious challenges in the supply chain management. Notably, Gucci has taken some steps in evaluating the risk of forced child labour in its supply chain. Although in the supply chains experience some external challenges, where possible, Gucci takes proactive measures to look into the issue of eliminating slavery, child labour, and human trafficking in their supply chain (Gucci 2013). In addition, Gucci has been cited to having encouraged its suppliers to observe on the issues that could tarnish the reputation of the organisation’s corporate image in the eye of the public and its customers. Gucci encourages its suppliers to avoid activities that may contradict social accountability international’s standards (SAI). Some of the issues forbidden by SAI includes forced labour, minimum age limit for person’s involved in labour. In addition, Gucci requires its subcontractors and suppliers to submit a commitment of written declaration affirming commitment to all SAI requirements (Gucci 2013). In the effort of walking the talk, Gucci has been concerned with following up on its subcontractors and suppliers and monitoring their activities just to be sure that they follow the laid down commitment to SAI. In addition, Gucci certifies its subcontractors and suppliers for being able to comply with SAI requirements (Gucci 2013). It has also been argued that Gucci addresses the issue of slavery and forced labour through their involvement in the responsible jewellery council (RJC). RJC was established with intentions of uphold ethical, social and environmental practices in diamond supply chains. In 2009, Gucci became a member of RJC. This means that Gucci had committed itself in the efforts of elevating slavery and forced labour in its supply chains. On the other hand, although Marie Claire is almost the same level with Gucci in terms of growth, its supply chains is not as complex as that of Gucci. Nevertheless, Marie Claire has also been cited to having employed several measures that help in curbing supply chains challenges. Global logistics Logistics is a very imperative component is the supply chains. It is crucial for organisations to focus on how the can manage their logistics in order to have a steady and reliable supply to their organisations (Bookbinder 2011). In essence, customers tend to build loyalty to a brand or organisations that can deliver steady supply of products to them. This becomes one of the notable competitive strategies that help organizations maintain competitive advantage over their rivals (Voortman 2004). Notably, Gucci has designed some strategies through which it can supply its products to most parts of the world without much challenges. For example, in 2012, Gucci was able to set up a new logistics centre in Switzerland. This was one of the strategies by Gucci to manage efficient and effective delivery of its luxury goods internationally. In another dimension, Gucci is believed to have captured many new customers in new areas that the Switzerland logistics centre opened up (Gucci 2013). The new centre raised the trust of many existing and potential customers about its ability to have a steady and reliable supply of its products. On the other hand Marie Claire has managed to use different logistic strategies to improve its competitive strategies around the globe. Notably, Marie Claire has managed to enrich its services and products by offering different tastes depending with the preference of the clientele around the globe. For example, in South Africa, Marie Claire is an iconic fashion organisation with much attention being directed on women (Marie Claire 2013). The company mainly focuses on social issues and fashion trends. Although there are many fashion companies in South Africa, Marie Claire provides contents which are not available in the country. Global supply chain strategy and configuration Fashion industry has been growing steadily in the resent years. Despite difficulties in economic situation around the globe, fashion industry to experience increasing demand. This has been attributed to the increased technology and new life styles that every person is eager to embrace. In regard to Marie Claire, it is apparent that the company has a global reach with dynamics of venturing into media and fashion. Its magazines have been well distributed around the globe. Its magazines offer a glaring overview of both fashion and beauty, which are in the market (Marie Claire 2013). Marie Claire articulates on every popular and current affairs that capturers the attention of its customers. In order to sustain sustainable global supply chains, Marie Claire’s headquarters coordinates its international publications through a well blended joint ventures and licensing agreements. Its advertising content is developed in Paris and then later translated into 24 languages ready for worldwide distribution (Marie Claire 2013). In light with this, it is apparent that Marie Claire has devised an approach that enable it reach out many people around the globe. This can be argued to a strategic approach because it enables people from different regions who speak and understand different languages to have access to its products. In addition, Marie Claire has an international editor-in-chief. The chief international editor has a clear connection with local fashion specialist based in different parts of the world (Marie Claire 2013). Another strategy employed by Marie Claire in order to ensure effective sustainable global supply chains is the fact that Marie Claire’s central location is in Paris. This is widely known to be a central place of fashion knowledge. This can be termed as a good strategy because rather than being located in proximity to its consumer markets, it focuses on grasping different fashions, and then distributes the same to its customers (Marie Claire 2013). Additionally, although Marie Claire may have many similarities in the way it configures its supply chain, it is apparent that Marie Claire has its own varying tactics, which ranges from the reflection of regional preferences to latest designs. Different Marie Claire’s formats configure several photographs of designer garments and the latest lifestyle features. In order to have its magazines contents interpreted by different persons from different regions, Marie Claire employs layout arrangements of how to link the structure text to visual images (Marie Claire 2013). This is of course done in a manner that guides the reader on how decodes both the text and the image. On the other hand, Gucci has over time successfully managed to have a sustainable global supply chains. The process of supply chains begins with a tight cooperation among designers, product development department and merchandising managers (Gucci 2013). Upon making some prototypes, Gucci organizes a fashion show and presents the sample items. One week after the fashion show, Gucci makes some fine finishing on all items. These items are presented during sales campaign (Gucci 2013). Nevertheless, this is seen as an evaluation process since some items are cancelled while others get modified. In addition, there is a slight configuration of cost of the items presented. After successful sales campaigns, orders are collected and consolidated. However, Gucci ensures that any item that fails to meet the minimum orders, it is eliminated from the collection. In light with this, it is arguably true that Gucci has to first familiarise itself with the processes of the market and configure its products in regard to what the market demands. Customer orders are channelled to the production section where allocation of the workforce and raw materials are made in line with the number of orders (Gucci 2013). This is done in order to have minimum cost of production in place. Unlike Marie Claire, Gucci does not rely on highly specialised suppliers. Most of its goods are leather and canvas products. A very minor portion of the cost is made of clips and other items, which requires little supply. In order to facilitate coordination with all its suppliers, Gucci has developed a web based supplier management system, which acts as a catalyst of the contact between Gucci and its suppliers (Gucci 2013). This system enables Gucci to have good time management and ensures that the production process is effective and efficient. Conclusion Fashion industry is an infinite product that is been used in the present age. In essence, the rise of global capitalism, over and above, the development of factory system of production, which incorporated retail outlets through mass production especially on the standard sizes and were later sold at fixed prices. Of importance to note is that the fashion industry first began in Europe and America. At present, competition globally is entirely stiff. Individual companies no longer compete as autonomous entities but as supply-chains networks. Due to economic down turn, as well as, increasing pressure on corporate profitability, there is a combined effect on efficiency in companies and organizations. Hence, global sourcing incorporates domestic and offshore outsourcing and shared services solutions, which is an effective way of attaining strategic operational gains and cost savings. Global distribution is the process that coordinates and integrates accomplishment in regard to requirements of a combine force in terms of the working force in a particular company all over the world. In another dimension, globalisation has greatly affected how organisations are managed strategically and operationally. The most notable challenges involve poor quality, inconsistency, and supply disruptions. Gucci has been considered as one of the organisations that have adopted new mechanisms of evaluating the most notorious challenges in the supply chain management. Equally, Marie Claire has also been cited to having employed several measures that help in curbing supply chains challenges. In order to eliminate logistics barriers, in 2012, Gucci was able to set up a new logistics centre in Switzerland. Similarly, Marie Claire has managed to use different logistic strategies to improve its competitive strategies around the globe. In order to sustain sustainable global supply chains, Marie Claire’s headquarters coordinates its international publications through a well blended joint ventures and licensing agreements. In light with this, it is apparent that Marie Claire has devised an approach that enable it reach out many people around the globe. Additionally, the chief international editor has a clear connection with local fashion specialist based in different parts of the world. On the other hand, Gucci has made its ensured that the supply chains begins with a tight cooperation among designers, product development department and merchandising managers. In addition, Gucci has developed a web based supplier management system, which acts as a catalyst of the contact between Gucci and its suppliers. In general, both Gucci and Marie Claire have excellently established their brands in the global market at present. This has been facilitated by their strong global supply chain that has been empathized by their production and distribution team. Moreover, both companies are aware that the fashion industry is not static in terms of changes, a situation they have been able to handle. In response to this, the market has overwhelmingly consumed their products leading to good business deals. Bibliography: Cook, T. A. (2011). Compliance in Today's Global Supply Chain. New York, NY: CRC Press. Bookbinder, J., 2011. Global Logistics. New York, NY: Springer. Cetinkaya, B. et al., 2010. Sustainable Supply Chain Management: Practical Ideas for Moving Towards Best Practice. Berlin; London: Springer. Choi, T., 2012. Fashion Supply Chain Management: Industry and Business Analysis. Hershey, PA: Business Science Reference. Cooper, M., 2007. Information and Communication Technologies In Support Of The Tourism Industry. Hershey, PA: Idea Group Pub. Griffin, R., 2012. Management. 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