assgn 1..ucb supply chain-flow of product,info.,service n finance

SUBMITTED TO: MS. HARLEEN SAHNI

SUBMITTED TO: MS. HARLEEN SAHNI

NATIONAL INSTITUTE OF FASHION TECHNOLOGY

GANDHINAGAR (GUJRAT)

SUBMITTED BY:

KRITI JALAN (11)

SHRUTI JAIN (28)

SUPPLY CHAIN MANAGEMENT ASSIGNMENT 1

UNITED COLORS OF BENETTON

National Institute Of Fashion Technology , Gandhinagar

BENETTON GROUP Today, the Benetton Group is present in 120 countries around the world. Its core business is fashion apparel: a group with a strong Italian character whose style, quality and passion are clearly seen in its brands, the casual United Colors of Benetton, the glamour oriented Sisley, Playlife American college style and Killer Loop streetwear. The Group produces over 150 million garments every year. Its network of more than 5,000 contemporary stores around world, offers high quality customer services and generates a total turnover of over 2 billion euro.

HISTORY

In 1965

The Benetton Group is established.

In 1970

A business model making the difference: unique, flexible and innovative.

In 1980

Benetton communication campaigns: known all over the world.

In 1990

A global company present in 120 countries.

In 2000

Benetton grows with the market over 150 million garments produced every year and distributed in around 6,000 contemporary stores.

United Colors Of Benetton Page 1

JOINT VENTURELICENSINGDIRECT MARKETS


TARGET GROUP

The companies target group is between the ages of 16 to 32.

BRANDS UNDER BENETTON GROUP

United Colours of Benetton has an international style that combines colour, quality and fashion.

The Benetton Baby label is a new product line dedicated to the prenatal and the under-fives world.

The brand is present in many other sectors, from the elegant accessories to the eyewear lines and perfumes, from the home collection to baby products.

It is an extension of the Benetton brand, featuring under wear, beachwear, sleepwear, accessory collections.

Under colours is available in its own chain of stores which now has more than 500 locations in thirty countries and in selected Benetton Shops.

KILLER LOOP

A fashion brand for young adults, with a resolute and distinctive style. It is inspired by teenagers' favorite role models and icons. Killer Loop is the Benetton brand that edgily interprets "street“ vibrations.

SISLEY

This is the Group's most fashion forward brand.Sisley presents elegant and seductive collections, with special attention given to the choice of design, fabrics and new shapes. The brand has created the very fashionable Sisley Young line for children from 8 to 12 years old.



PLAY LIFE

It is the Benetton leisurewear brand that redefines a style. With its clean and elegant collections Play life blends exclusive styles with strong sense of individuality.

PRODUCT ASSORTMENT


RAW MATERIAL SUPPLIERS BENETTON

BENETTON AGENTS

EXCLUSIVE SUB-CONTRACTORS

UPDATE ACTUAL DEMAND DAILY

CAD DESIGN AND CUTTING OF GARMENTS

DATA ON COLOURPREFERENCE BASED ON DEMAND

DYESHIP TO DESIGN AND CUTTING RETAIL STORES

Return Finished Undyed Garments

Finished products

Send cut garments

Schedule information

Sales data

Management data

Orders

Information flowPhysical flow

KEY


SUPPLY CHAIN MANAGEMENT

It is the process which establishes a good relation between all the members of the organization during the process of converting the raw materials into the final products, so that it becomes available to the end consumers in the market

FLOW OF PRODUCT



THE ROBOTIC DISTRIBUTION CENTRE

Benetton has huge distribution centre where the garments are already packed in one of two standard boxes which are bar-coded and pre-addressed to customers.

The bar-coded cartons are delivered by high speed conveyors from the receipt bays to rail-guided transporters in the storage area. Each transporter can transfer up to 24 cartons at a time to and from the racking. Simultaneous put-away and retrieval occurs to maximize efficiency.

The storage zone has a capacity of 250,000 boxes sorted randomly. The Distribution centre handles 12,000 boxes a day equivalent to 6,000 consignments a day, representing some 60 million garments a year.

It established WIDE (Worldwide Integrated Distribution Enterprise) to manage the international forwarding and customs clearance functions.

WIDE was first established to manage the North American product movements. This organization deals directly with air carriers--eliminating a level of freight-forwarded intervention.

EDI technology allows Benetton to transmit documentation ahead of consignment arrivals to allow speedy clearance through customs and forwarding to the retail outlets. These functions are managed or performed by WIDE.

The result of this rationalization was a 55 per cent reduction in physical distribution costs and a reduction in lead times to the USA from 22 days to seven days.

Benetton is creating great designs, but also building a logistics system to compete with the fast fashion companies. It has invested more than $160 million into its supply chain for its brands that also include Sisley and Playlife. Benetton is outsourcing the production of high-margin accessories and has a world-wide distribution network. The company can reroute merchandise during shipment if another store needs more clothes. Benetton sends


QUALITYSPEEDDEPENDIBILITY

FLEXIBILITY

COST

MAJOR PERFORMANCE OBJECTIVES


inventory in small shipments, ships every two weeks, but can ship in seven days if a product is hot.

DUAL SUPPLY CHAIN SYSTEM

Benetton's industrial set-up is based on a double supply chain, which is a better measured and more efficient one, based on a logical sequence of activities for minimizing costs. It is a more rapid system with better response capabilities as it’s an integrated planning system that optimizes in parallel the activities of R&D, product design, production and sales.

A balance between the twin tracks of activities makes the supply system flexible and provides the required support for the large expected growth in production from the current level of around 150 million items that Benetton may face soon.

The major functions of the dual supply system like design, planning, coordination and programming are maintained in Italy. It focuses on rapid response to the market, while looking outside Italy for a proper combination of product quality, efficiency, and the necessary cost control.

The Production Planning Office prepares forecasts of market dynamics, and makes it possible to anticipate and decrease production times in order to respond to the needs of the target market in a timely manner.

Efficiency – sequential supply chain Speed – integrated planning system

Benetton’s increased Efficiency and Speed within the Dual Supply Chain


Push Driven

Approach

Pull Driven

Approach

Dual Supply Chain


LEAD TIME TO PRODUCE


Desi gning March to June

Purchase of wool,production of 10% of demand

Inputs fr om shopkeepers taken up latest till july

modified designs sent to stores(80%-90%) till january

Manufacturing

Sales force automation

Distribution

Customer sCustomer support

Sales personnelService /support personnel

END CUSTOMER

BACK OFFICE APPLICATIONS

FRONT OFFICE APPLICATIONS

Finance


FLOW OF INFORMATION

Benetton works continuously on communicating effectively with the financial market through a structured program of communication, which provides shareholders, investors, and analysts with a regular flow of information.

The financial results are presented on a quarterly basis through public conference calls which can be widely accessed, including through our web site.

In addition, the Investor Relations department organizes analyst days, calls, and regular meetings with shareholders and investors in the major financial markets or at the company’s head office, company visits, and presentations at broker conferences.

Top management is kept constantly abreast of how the market perceives the Company, in order to optimize strategic decision-making.



FLOW OF COMMUNICATION

Benetton’s communication can be divided into two macro departments within the company: the corporate and fashion press office and the advertising department.The press office, with headquarters in Ponzano, coordinates thirty public relation offices in thirty countries around the world, which handle the product communication and the corporate image of the Group in each country. The advertising department develops the institutional and product campaigns for the international market through an internal media planning structure which directly buys media spaces both for Italy and the rest of the world.

A constant dialogue between the head office and the external network guarantees a profitable exchange of information and at the same time aligns the communication activities and the local commercial needs.

"Fabrica" Benetton’s communication research and development center was launched. Fabrica’s challenge is both an innovative and international one. It is a way of marrying culture and industry, using communications which no longer rely only on the usual forms of advertising, but transmit “industrial cultural “ and the company’s “intelligence” through other means: design, music, cinema, photography, editorials and the internet. Fabrica has chosen to back the creativity of young artists/researchers from all over the world.


INFORMATION FLOWSINFORMATION FLOWS

BEN. SPAIN

S.A.B.

BENETTON

AGENT

...................

GARMENTS

SHIRTS

ACCESSOR.

SHOES

...........

SHOPS MKT INFOCOLLECTION & PRICES

ORDERSCONFIRMATIONS

SUPPLIERS SHOPS

...................

CUSTOMERS


BENETTON TV

The Benetton TV project is a new portal for Benetton partners (agents, clients, stores, and buyers), providing controlled access with all the necessary security assurances.

The system makes it possible to provide information to the entire Benetton commercial network in real time, updating everyone on initiatives (new collections, redistribution, display methods, distance learning for employees, and so on), and receiving orders via web.

SISLEY TV

Following the success of Benetton TV, a new project was launched in 2007 for the implementation of Sisley TV, a brand-new portal dedicated to the Sisley partners. The look & feel of the website reflects the main characteristics of the brand while maintaining a consistency of contents with Benetton TV.




new collections, redistribution,

display methods, distance learning for employees,receiving

orders

UNITED COLORS OF BENETTON (HEAD OFFICE) , ITALY

EBO’S MBO’S FACTORY

OUTLETS AGENTS BUYERS

BENETTON TV, SISLEY TV

FLOW OF COMMUNICATIONS IN UCB.

CONSUMERS

STORES(SALES REVENUE)

CREDIT CARDSDEBIT CARDS

CASH PAYMENT

HEAD OFFICE(FINANCE

DEPARTMENT)

ADMINSTRATIVE AND OTHER PETTY

EXPENSES

EMPLOYEES(SALARIES)

SOURCING TEAM

FABRICATORSOUTSOURCE FACTORIES

VENDORS AND MATERIAL SUPPLIERS

BENETTONS OWN CUT MAKE TRIM (CMT) FACTORY

VENDORS AND SUPPLIERS

BANK

OUTSOURCELOANS FROM BANKSSHARES/DEBENTURES


FLOW OF FINANCE

FLOW OF FINANCE



The company (retail outlets) generates its income from the customers who use various modes of payment in the form of cash or credit/debit cards on behalf of exchange of products.

The payment is transferred to head office (finance department).

Various source of income for the HO are

LOAN GENERATION Issue Of SHARES / DEBENTURES INTEREST ON INVESTMENTS INCOME FROM THE FRANCHISEES RETAIL OPERATIONS

the further money flows in various operations of the company, like salaries to employees Day to day operations Raw material vendors


COMMUNICATIONS

THE BASIC FUNCTIONSTHE BASIC FUNCTIONS

- Shop opening/close etc.- Shop mkt information- Controlled order- entry- Confirmations- Colors instructions- Message interchange- Order for local production - Transfer of orders among plants

DB mangementOrder portafolio

Customers, items, price-list

Order portfolio analysisCurrent collectionPast collectionsCustomers

Items, colors etc.

AGENT INFORM. SYSTEM

.

.

.

.

.

.

Shops.

Shops Mtk anlysisBrand names

Square metrs, windows, etc.Furniture, etc.

.

.

.


FLOW OF SERVICES

REASSORTMENT ORDER SYSTEM

Allows the reordering of best selling items Average 5 days service time’ Improving the service to shop

SHOP MANAGEMENT

More than 2000 shops connected Supplies the POS systems all the data concerning: Styles, order, prices etc. And for each delivery. Packing lists, invoices etc.

EDI FORWARDING SYSTEM

connecting the customs brokers Reducing delivery time by 15% Informing the agents and the companies

CREDIT COLLECTION

85% of credit managed through cash managed system Confirmation of payment in 5-7 minutes On –line customer credit for agents


CUSTOMERS RETAILERS

VENDORS

MANUFACTURERS

AGENTS/MARKETEERSFLOW OF SERVICES

assgn 1..ucb supply chain-flow of product,info.,service n finance

Documents