SUPPLY CHAIN MANAGEMENT AT WORLD CO., LTD.

Presented By :


Hanif Bin Azizan @ Harun 814771

Azhar Bin Samsudin 814108

Tharshini Manalan 814789

Mharunmolly Tangayah 814112


Presented For : DR. MARTINO LUIS

Date : 5 July 2014


Introduction
Vertically-integrated retailer of Japanese womens appareldesigns; produces; and
ships the product
Responds quickly to marketing signals
Gross margins high
Inventory Turns high
ROE/ROA low

WORLD CO., LTD - manufacturers design.
- develop their own products.
- SPARCS System
Functions as Wholesalers, Retailers, Large Manufactures Own Boutiques, Dept. Store
Outlet Store
Japanese economy
Brand fragmentation
Chapter 10 Significance Case Study


Highlighted - Bullwhip effect and its impact on supply chain performance -
- Ability to increase the total supply chain surplus.














Effect on performance of lack of coordination
- Manufacturing Cost
- Pricing obstacles
- Behavioural obstacles



Price Fluctuations.
Other batching
Forecasting updating
Shortage gaming
Long lead time
Inventory Cost
Transportation Cost
Relationship across the Supply Chain
Level of product availability
Labour cost for sipping and receiving
Causes of bullwhip effect
Supply Chain dependencies
Planning
Information
system
Production
Process
Empowerment
SPARCS
Empowered
brand teams
Supply Chain Process at World Co., Ltd
Systematic
Disciplined
ABCD Rule
Forecasting


Manufacturing
Make 50% of forecast
Balance 50% reserve
Capacity & raw material
Inventory & Production
Planning
Domestic manufacturing
Short lead time
Fast transportation
Close collaboration of design and manufacturing
2- 3 weeks replacement
Flexibility of factories
Small batch production
Case Background
3 Categorize







Women apparel - short
life-cycle and moving
under an extremely
uncertain demand.
3 - distribution
alternatives
- company owned stand
alone stores.
- company owned stand
alone stores.
- shops within department
stores.

Womens apparel,
handling mens and
childrens wear
specializing in knitted
garments.
Targeted female 25
29 age.
Introduce new
collections twice
annually (spring-
summer and fall-
winter).
New product will
introduce every 2
weeks.

Women apparel
wholesale and retail
distribution methods.
Business process system
called SPARCS -
customer relationship,
order fulfillment, and
supplier relationship
processes.
Competitors are Gap
Inc.
Company Stakeholders
Community Government
Employee
Competitor
Designer
Retailer/
warehouse
Manufacture
r
Distributor
Raw
material
supplier
Customer
Stakeholders
Surrounding
World Co.,Ltd
Supply Chain at World Co. Ltd


Raw Material
Supplier

Designer

Manufacturer
Distributor/
merchandiser

Retailer

End
User
Problems Identification
Strength
Weakness
Opportunity
Threat
Case Discussion
Features of fashion apparel in Japan and World Co., Ltds competitiveness?

World Co., Ltd salient aspect of manufacturing, demand forecasting and inventory
planning

World Co., Ltds supply chain features strength for effective lead time and respond time
(relative to U.S apparel supply chain)

Can World Co., Ltds supply chain processes replicated to other companies?
Case Discussion

Recommendation
High inventory issues new product information sharing, update speed
Advertising and promotional
Lessen brand fragmentation
Reduce the labor cost lessen stores/ employees
Pics for slides after editing

INTELLECTION