Benetton's 'Dual Supply Chain' System
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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OPER065 |
For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 +Shipping & Handling Charges extraThemes
Supply Chain Management |
| Case Length |
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19 Pages |
| Period |
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1998-2006 |
| Organization |
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Benetton SpA |
| Pub Date |
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2008 |
| Teaching Note |
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Not Available |
| Countries
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Italy |
| Industry |
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Apparel
Retailing |
Abstract:
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The case discusses the dual supply chain system practiced by Italy based
clothing company Benetton SpA (Benetton). During the 1980s and early 1990s,
Benetton was the world leader in the casual apparel market with stores spread
across the world. The company was well known for its postponement strategy,
wherein the dyeing of the garment was postponed till the colors in vogue for the
season were identified. By the late 1990s, Benetton could not compete with the
fast fashion retailers which were launching several collections a year, as
against only two collections brought out by Benetton. In order to meet the
changing demands of the customers, Benetton revamped its supply chain, and opted
for a Dual Supply Chain system.
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In this system, production was carried out in
Asian and European countries, depending on the time required to
market the product. The dual supply chain focused both on pull
as well as push based demand. After implementing the new supply
chain system, Benetton was able to launch five collections in
each season, with some of the collections incorporating the
latest trends. The case explains the postponement strategy of
Benetton, the supply chain problems it faced in the late 1990s
and the Dual Supply Chain system.
Issues:
» Analyze the supply chain operations of Benetton.
» Understand the postponement strategy of Benetton.
» Study the production and distribution process followed by Benetton.
» Critically evaluate the 'Dual Supply Chain' of Benetton.
Contents:
Keywords:
Benetton SpA, Supply Chain Management, Dual Supply Chain,
Fast Fashion, Vertically Integrated Model, Production, Distribution Center,
Retailing, Postponement Strategy, Retail Management, Delocalization, Sorting
System, Product Delivery
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