Logistics is a process that forms the heart of modern retailing. Currently, supermarkets are going through major strategic developments. Logistics is one of the key factors that can help them to improve their performance.
Logistics involves managing the flow of information, material and other resources, between the producer and the consumer, in order to meet customer requirements. All large firms, especially in the textile industry have a logistics department.
The logistics department at H&M will be the topic of this study. H&M, one of the largest retailers of textiles in the world, was founded by Erling Persson in 1947 in Västeras in Sweden. H&M has grown substantially in recent years, and now have a total of 1,500 outlets spread across 28 countries.
It employs over 100 designers who, in collaboration with a team of 60 designers, and several managers, design collections for women, men, children and the youth. H&M sells its clothes through the catalog and also on the internet.
The textile market is a very demanding and particular market because customers are more demanding. Companies need to be more versatile and responsive to satisfy the demands of their customers.
The competition in the textile market is active both nationally and internationally. With the arrival of the enterprise market where labor is cheaper it is observed that many textile companies are relocating.
In recent years with customization of the application there is a change in the structure of production, the concept of selling what is produced has changed to producing what sells. This theory or concept is what makes logistics critical in this industry.
Indeed, the peculiarity of the textile logistics is that it finds a very large amount of reference again due to a heterogeneous customer demand. The complexity also lies in the difficulty to predict and know what will sell since there are many seasonal items.
It is important to deal with the contingencies for example, such as stock-outs so one will notice the development of logistics in companies. These logistics are carried out using specific warehouse management software.
Tags: H&M, Logistics, development of logistics
[...] To complement its distribution center in Borås (Sweden), which is reserved for online sales and mail order, H&M has established a new office supply in Poland that commenced its services in 2007. This new facility serves the markets for online sales and mail order, and the stores in Poland. A new site logistics service in Germany and the Netherlands has also been established in Hamburg.H&M places trust to its new logistics markets in place of others, and then gradually returns to its account Purchase and production H&M does not directly engage in any manufacturing plant, but uses about 700 suppliers, primarily in Asia and Europe. [...]
[...] Hence of unsold product batch is included and the 16% of unsold stock (including of storage of Workforce and charges) of the 40% of the original sale price to the network can be sold at the discount store. But this method is risky. Indeed, the bulk of the unsold goods weighs on brand awareness as it is aa network where indirect selling of the products offered on sale constitutes less than 50% of the ex - selling price. Nevertheless, this is normal for the brand when it gets its mass in the purchase price and can book places of transport as early as possible.There are two parameters in this regard: The "mass" cannot handle re-attachments Definition of supply chain Supply Chain, activities is the system of organization of people, activities, information and resources to move a product or service from a supplier to the customer. [...]
[...] H&M has fully funded the expansion plans and is also executing several collaborations, including the ones with Madonna, Roberto Cavalli or Kylie Minogue Logistics at An essential service Logistics in the textile world The textile market is a particular market, and in fact has an ever more demanding clientele that is very versatile. Hence, companies must be more responsive to satisfy the demands of customers. Indeed, the competition in the textile market is very active both nationally and internationally. Also, labor is cheaper and a phenomenon of relocation of some textile companies has occurred recently.With customization of the application, in recent years, there has been a change in the structure of production which "is no longer selling what is produced, but it produces what we sell". [...]
[...] Finally, if an item sells well, it should be possible to order and obtain additional quantities in one week.The company seeks to shorten delivery times by improving its planning. The more a demand is delayed, the more it gains in precision and flexibility, which allows stores to be replenished soon The characteristics of the logistics of the sales and supply chain The sell-through H&M has operating margins closer to 20% and stocks run between 12 and 10.5 times, but they arenot given to everyone. [...]
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