Supply Chain Management at World Co., Ltd Essay

2515 Words Nov 9th, 2005 11 Pages
Case Analysis, 2005

Supply Chain Management at World Co., Ltd.

Japanese consumers have a reputation of being highly brand name conscious. Although this trend still remains for some categories of people, especially young women who are sensitive to latest fashion trends, nowadays Japanese consumer are also starting to choose apparel that matches their tastes and life styles.
Japanese apparel manufacturers design and develop their own products, oversee a number of production subcontractors, and manufacture and market products under their own brands. Nearly all of these apparel manufacturers also function as wholesalers, selling products directly to retailers. Larger manufacturers even have their own boutiques within department
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The SPARC model incorporates four platforms representing World's core operations – retail outlets, merchandising, development and production. This operational platform forms the core to which the personnel, management accounting and information support platforms are attached, making up the entirety that is World's management platform. The operational platform manages the whole business, from the retail outlets to the production sites, while the personnel, management accounting and information support systems contribute organizational assistance from the management side.
In other words, the SPARCS model represents the essence of World Group's management strategy, and its entire managerial resources are concentrated on promoting the implementation of the SPARC model.

Supply-chain management in World Co. Ltd. is based on strategies of SPARC model. It synchronizes a customer relationship, order fulfillment, and supplier relationship processes with the essential processes of its suppliers and customers in order to match the flow of services, materials, and information with customer demand.
Supply-chain management serves as a key competitive weapon for World Co. as a small reduction in the cost of materials for manufacturing firms can increase profits a lot.
The inventory handling system implemented in World differs from those of US manufacturing and retailing firms. Inflow of row materials, which are fabric and supportive goods in apparel

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