Ecom-201

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1- Brief your understanding about Benetton Supply Chain operations. 2. In your understanding, what is the specialty of Benetton's contractors? Ge threugh the case stedy and answer the questiens that follow The Beartion supply chain: One of the bes-known eramples of hor an orranization can use its supply chain to achoceve a competitive advantage is the Bonction Group. Founded by the Bencthoe family in the 1960n, the company is now oos of the largest garment retailers, with stures whok bear ins name located it almost all parts of the wocld. Part of the reason for its wacess has beca the way it has cepanired ked dae sepply side and the domand side of ies mopply chain. Althoryt Bencoion docs manufacture moch of its production itucti, on its suoply side the company felies heavily en "coetracton", Concrackon ane companies imany of which are owsod, or partownot. hy Benction by knitting and assembling Renethe's garments. These contractors, it tam use the sevices of sab-coetractors to perform sotne of the matufactaring takk. Benettion' manufacturing cperations pais twe advantages from this. Fint, its production costs fir woollen items are sigenificantly below some of its cenectitices because the small supply oompanics have lower costs themselves. Socond. the arrahpomen allow Bencthoen so abserb fluctaation in demand by af fating in woply arrabecments. without itself fecling the fill edoct of dernand flachuations. On the demand sole of the chain, Bescevon opernats throwh a number of henth, cach of whow a nesponsible for their own poographical arca. These apones are nesponcible for developing the stores is their area. Indect. muny of the atents actually own some anors in thcir area. Prodacts are shipped from taly to the individal aores wbere they are often pue directly onts the Ahches. Bencthon stores have always boen designed with rolatively limitod sterape space se that the carmeots iwhich fypically, are hrightly colourod) can be stoced in the shop itseif, adding colour and ankience to the aposearaces of the dure. Hecause there is sach listited space for invomaony in the stores, stove ownen rogaine that deliverics of garments are fast and dependable. Benctsee factories achicve this portly throuch their famoun policy of manefacturies rarments. where possible, in prefsio, ar in pros, and then dyeing them eely when demand for partacelaz cobours is evident. This is a slighty mone expcosive peocess than knitting dircctly from colowend yan. but their supply-side flevibilify, which in turs allew them achicve relatively fast deliveries to the stoens