designproductiondistribution. customer store mgr designerbuyersupplier store womenmenkids constant...
DESCRIPTION
Design/ Production etc StoreCustomer 5 fingers on customer & 5 fingers on suppliersTRANSCRIPT
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Design Production Distribution
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Customer
StoreMgr
DesignerBuyer
Supplier
Store
Women
Men
Kids
• CONSTANT XCHANGE OF INFO • 3 independent Bu- implications?
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Design/Production
etcStore Customer
5 fingers on customer & 5 fingers on suppliers
![Page 4: DesignProductionDistribution. Customer Store Mgr DesignerBuyerSupplier Store WomenMenKids CONSTANT XCHANGE OF INFO 3 independent Bu- implications?](https://reader036.vdocument.in/reader036/viewer/2022082908/5a4d1b0c7f8b9ab05998c189/html5/thumbnails/4.jpg)
Close communic-ation loop
Stick to a rhythm
Leverage Your
Assets
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• Approach/ payoff
Philosophy
• You need to have 5 fingers touching the factory & 5 touching customer
Capability
• Zara can design, produce, deliver in 15 days flat.
Payoff
• Collects 85% of full price vs 65% competition
• 2001
Inditex
BenettonH&M Gap
0
2
4
6
8
10
12
% Net Margin
% Net Margin
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1991 20030
500100015002000250030003500400045005000
Sales E milProfit E mil
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Simpler products outsourced(sweaters)
Complex Products in-house (Women’s suits)
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Inventorydown
Profits up
Revenues up
Payoffs
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