PRODUCTION MODELS
We can distinguish three production models:
• The traditional one needs a cycle of more than 300 days since a model is designed, the patterns are made, the fabric is ordered, manufactured and distributed.
• The hybrid model follows the traditional pattern, although it incorporates shorter and more flexible productions that guarantee the rotation of the products in stores.
• The third model is the one that distributes its production among the "basics", those clothes that are never out of style and therefore, have a low rotation in the stores and the "opportunists" or just in time, which are capable of rotating in short cycles in response to market variations.
The Italian company Benetton was the first to develop this model, …show more content…
In the 2006-2010 period, it invested in fixed assets worth 4,000 million euros.
Effects of technological advances on the operations of fashion retail:
• The use of standardized bar codes for sales records allowed compiling data necessary for the forecast accuracy, adjust supply to demand and decrease sales at liquidation prices.
• The implementation of electronic data speeded communications with suppliers, making possible the reduction in the size of lots and the risk associated with the maintenance of inventories. Also, the expansion and diversification of suppliers which reduced dependencies. It also promoted the relocation of the production and distribution centers, eliminating geographical barriers.
• The application of information technologies in the distribution centers allowed the consolidation of orders from suppliers in different geographical regions, being able to maintain or reach economies of …show more content…
Where cost control is vital, the fashion market is time sensitive, so having the right product in the right place at the right time and at the right price with the right promotion is more important for the distributor's margin. For them, time is more important than production costs.
The first advantage is vertical integration, which is decisive for a rapid response of the supply to a very changing demand. A synchronization is made in the production and distribution processes, which allows them to anticipate to its competitors. This synchronization starts in the design, goes through the supply of raw fabrics, tinting, pattern making, finishing and ends with distribution and marketing.
Zara is the only international textile manufacturing company that has its own manufacturing processes.
In the sector, there are several types of integration:
• The predominant, which includes only the design and marketing processes (Gap, Hennes & Mauritz). It subcontracts manufacturing to other companies.
• The Benetton model (Benetton, Mango), integrates the design and manufacturing processes, but the commercialization is done mostly through franchises and only rarely through joint ventures or own
We can distinguish three production models:
• The traditional one needs a cycle of more than 300 days since a model is designed, the patterns are made, the fabric is ordered, manufactured and distributed.
• The hybrid model follows the traditional pattern, although it incorporates shorter and more flexible productions that guarantee the rotation of the products in stores.
• The third model is the one that distributes its production among the "basics", those clothes that are never out of style and therefore, have a low rotation in the stores and the "opportunists" or just in time, which are capable of rotating in short cycles in response to market variations.
The Italian company Benetton was the first to develop this model, …show more content…
In the 2006-2010 period, it invested in fixed assets worth 4,000 million euros.
Effects of technological advances on the operations of fashion retail:
• The use of standardized bar codes for sales records allowed compiling data necessary for the forecast accuracy, adjust supply to demand and decrease sales at liquidation prices.
• The implementation of electronic data speeded communications with suppliers, making possible the reduction in the size of lots and the risk associated with the maintenance of inventories. Also, the expansion and diversification of suppliers which reduced dependencies. It also promoted the relocation of the production and distribution centers, eliminating geographical barriers.
• The application of information technologies in the distribution centers allowed the consolidation of orders from suppliers in different geographical regions, being able to maintain or reach economies of …show more content…
Where cost control is vital, the fashion market is time sensitive, so having the right product in the right place at the right time and at the right price with the right promotion is more important for the distributor's margin. For them, time is more important than production costs.
The first advantage is vertical integration, which is decisive for a rapid response of the supply to a very changing demand. A synchronization is made in the production and distribution processes, which allows them to anticipate to its competitors. This synchronization starts in the design, goes through the supply of raw fabrics, tinting, pattern making, finishing and ends with distribution and marketing.
Zara is the only international textile manufacturing company that has its own manufacturing processes.
In the sector, there are several types of integration:
• The predominant, which includes only the design and marketing processes (Gap, Hennes & Mauritz). It subcontracts manufacturing to other companies.
• The Benetton model (Benetton, Mango), integrates the design and manufacturing processes, but the commercialization is done mostly through franchises and only rarely through joint ventures or own