SUPPLY CHAIN OPTIMIZATION AT HUGO BOSS Case Solution
Thus, If the company wants to improves the efficiency and responsiveness of its supply chain activities than it is necessary for the company to implement the order tracking machines in its department which highlights the timely transactions of the company as well as shows the inventory and stock details which enable the company to keep the limited stock in the warehouses according to the customers’ needs.
SUMMARY OF PAR & STAR
PAR stands for Problem, Action and Result. The company has faced several issues in its product range which is offered by the Hugo Boss to its customers. The issues arose due to the change of customersâ€™ requirements and some of issues faced from the never out of stocks (NOS) items. The company believed that if they want to strengthen competences of the Hugo Boss, then it is necessary for the company to use the extension of the Boss womenâ€™s wear for Hugo Boss which not only helps the company in achieving the leadership position in the fashion industry as well as bring intimacy into the organization. In order to improve the efficiency of the supply chain activities, the company needs to take further steps which not only promotes the brand’s image in the market as well as helps the company in achieving its steady business growth in the fashion industry.
Moreover, the management team realized that they need to take further actions which improve the availability of the product as well as improves the retail industry process. The action plan includes the change in order frequency, maintenance of on-hand inventory and change in inbound transportation. As a result of the change in frequency, the company allowed a four-week reduction in lead time. The average on-hand inventory increases to 16% which is ranged from 41697 to 48372 units. As a result, the inbound company cost reduces to 9% which reduces the shipment cost and provides additional orders from customers. However, the company believed that by achieving and committing the high level of services or availability of the products on a consistent basis, the company would reduce the risk of stock out as well as maintain the market demand for its products. Hugo Boss is freeing its retail customers from having to carry insurance brands. The company is granted the extra shelf spaces in the market by being a reliable partner to the retailers, and this helps the company to achieve its brand dominance in the fashion industry.
The Company is thinking critically to change the performance level of the business activities. The primary concern of the company is that how they would improve the responsiveness and efficiency of the supply chain activities. This case highlights the challenges that the company faced in assessing the impact of the supply chain, the relationship between firm performance and the operational performances and the association between the product availability, inventory and sales. From the point of view of operational activities, the inconsistency that exists as a result of manufacturing and designing short run fashion product is high.
Due to the continuous shift in demand and preferences, the company faces issues in maintaining the accurate forecast industry which at the end create a high-risk action for the company as there is no sales guarantee given for scale inventory system as well as for the manufacturing of the product. The skilled control of design, supply chain operations and planning impact the profitability and success of the operations. The main task of the company is to reduce the change order frequencies as well as reduce the inbound transportation that cost the company high. The SCO department ensures the production planners about the current production schedules that reflect the demand of the customers. The company also improves the sales and warehouse operation that enable the company to achieve its competitive advantage in the economy. Due to change in the management process, the company product availability improves to 97.9% to 99%. Overall, it was a win-win situation for the company as there were numbers coming out in favor and satisfaction reached but still, the lust to be at the state-of-the-art level was pushing the two drivers of the project to look forward to doing more………………….
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