Most goods in Wallmart would have very stable demand and therefore be provided through very "efficient" supply chains (one of Wallmart's greatest strengths) where as other high street retailers such as H&M (fast fashion clothes giant) derive alot of their competitive advantage from their ability to react to sudden and unpredictable changes in customer demand. This makes them able to ship smaller quantities of goods at short notice to different markets very quickly. This "responsive" type of supply chain is much more expensive to operate but the speed and flexibility that it offers them also saves them many important costs such as big inventory risks of making larger "cheaper" batches of clothes, which would then take longer to get to market, losing initial "high season" sales and leaving them with the risk of lots of unsold stock if demand is not as high as hoped.
An "Efficient" supply chain would be typically best suited for supplying everyday staple goods like tinned food, dish-soap, grey socks, car tyres etc. A "Responsive" supply chain would typically be best suited for goods such as fast fashion clothing, premium new electronics, movie character merchandise etc.
Can you give me an example differences between reaponsive and flexibility supply chain?
Can you describe any specific companies ?
Most goods in Wallmart would have very stable demand and therefore be provided through very "efficient" supply chains (one of Wallmart's greatest strengths) where as other high street retailers such as H&M (fast fashion clothes giant) derive alot of their competitive advantage from their ability to react to sudden and unpredictable changes in customer demand. This makes them able to ship smaller quantities of goods at short notice to different markets very quickly. This "responsive" type of supply chain is much more expensive to operate but the speed and flexibility that it offers them also saves them many important costs such as big inventory risks of making larger "cheaper" batches of clothes, which would then take longer to get to market, losing initial "high season" sales and leaving them with the risk of lots of unsold stock if demand is not as high as hoped.
Hello sir. Is supply chain management measure the same as supply chain management models . If they are different kindly help clarify them.
Im afraid I dont understand you question Olabanji
Can you plz share some examples for both supply chain?
An "Efficient" supply chain would be typically best suited for supplying everyday staple goods like tinned food, dish-soap, grey socks, car tyres etc.
A "Responsive" supply chain would typically be best suited for goods such as fast fashion clothing, premium new electronics, movie character merchandise etc.