First is its innovative operations-management techniques, such as delayed dyeing. Benetton postpones garment dyeing for as long as possible so that decisions about colors can reflect market trends better the tinto-in-capo strategy. Second is its network organization for manufacturing. Third is the network organization for distribution:
Related ABSTRACT The business environment of the modern world is very complex and effective business strategy plays an important role in the success of a business firm.
The implementation of a strategy at the right time and right place to the right people is the key for success.
The firm which succeeds in implementing this can overcome the hurdles of the business environment. This report gives the details of the main difference between the conventional and the new Benetton networks focusing on product design, supply and distribution.
The Benetton story of growth from a small company to one of the worlds largest garment producer is attributed to the establishment of an effective network for the production, distribution and retailing. The company extensively used subcontracting in the production, supply and distribution in the initial phase.
As mentioned by Ramdass and Kruger the certainty of business like permanent orders and prompt payment helped them to establish a long standing relationship with the subcontractors.
The strategy of outsourcing and effective networking of the subcontractors has reduced the cost of the company in terms of capital investment, labour and processing time. This helped the company to grow in a short span of time as a global leader in garment production.
The effect of globalization has slowly changed the style of business of Benetton. In order to have effective control, Benetton started production poles and directly controlled market outlets.
The change in the strategy helped the new Benetton to retain the competitive advantage. Benetton has created a borderless world by linking raw material suppliers, manufacturers and 6, retailers to deliver 60 million garments a year to satisfied customers in 83 countries Dapiran, The Just-in-Time JIT method adopted by Benetton in dyeing helped to take care of the rapidly changing fashion in the garment industry.
Benetton is doing the dyeing at the last moment of production depending on the latest requirements of the customers which increases the reaction speed and reduces the cycle time of products. They are able to get the latest requirements through the rapid transfer of information using the Electronic Data Interchange EDI system which links the market place with the manufacturing process.
Benetton also showed that economies of scale is possible in the freight-forwarding function Dapiran, It was established through a Worldwide Integrated Distribution Enterprise WIDE to control the international forwarding and customer clearance functions.
They are mainly engaged in casual wear business, sports business and complimentary activities. Benetton always tried to offer same or similar range of products in all the markets.
But till the starting of globalization more than 20 percent of models in the casual wear segment were customized to satisfy the demand of each country Camuffo, Romano and Vinelli, The models in each country were selected by individual retail agent which has resulted in developing different image for Benetton in different parts of the globe.
The increase in the number of models increased the set up time which resulted in under utilization of the available facility. Globalization has changed the style of products offered in the textile industry.
The cross country homogenization of consumer lifestyles is observed in the market which encourages the firms to produce global products rather than offering country specific products. This has resulted in changing the product mix of Benetton.
There present plan is to offer more limited range of products in all the country. Nowadays only 8 percent of the models are only offered with differentiation suiting to the county specific demand.
The reduction in the number of models helps to reduce the set up time which results in better utilization of the facility. The company hopes that eventually flash collections can form 35 to 45 percent of the total products Camuffo, Romano and Vinelli, For Benetton the stores are not simply outlets for their garments but information probes measuring the level of customer acceptance of the Benetton "look", In true partnership mind set, the key desirable qualities of the licensees are their commitment to Benetton and their ability to expand the market.
Dassault Systèmes’ ENOVIA Version 6 will provide Benetton with deep domain-specific apparel design and production capabilities and industry-leading global sourcing management that will enable Benetton to achieve lead time reduction, optimize its sourcing operations, streamline product line complexities and enhance collaboration while.
Logistics and Outsourcing in China: the Benetton Group S.P.A. Case Essay Introduction The aim of this paper is to analyze the supply chain management, of United Colors of Benetton, in order to understand the key logistic factors that have made this company so successful in the apparel industry - Logistics and Outsourcing in China: the Benetton Group S.P.A.
Case Essay introduction.
View Vikram Ramprakash’s profile on LinkedIn, the world's largest professional community. Vikram has 7 jobs listed on their profile. See the complete profile on LinkedIn and discover Vikram’s Title: Head Of Sourcing at Benetton .
UNITED COLORS OF BENETTON. RETAIL BRAND MANAGMENT SHIV CHOUDHARY ROLL NO 23 FASHION COMMUNICATION Luciano Benetton: "The purpose of advertising is not to sell more. as demonstrated by timeless architecture by Afra and Tobia Scarpa and Tadao Ando. producing over It's to do with institutional publicity.
Benetton has consistently refined its operations and supply chain processes. One example is a drying method that involved hanging finished goods instead of tumble drying.