Abstract

The case discusses the innovative supply chain management practices of Sweden based apparel retailer - Hennes & Mauritz AB (H&M), which enabled the company to gain advantage over other fashion retailers in the world. H&M designed garments centrally at Stockholm, Sweden. These were then sent to the production offices of the company and then to the manufacturers. H&M did not own any manufacturing facilities and all the production was carried out by more than 700 independent suppliers located in Asia and Europe. In the case of garments that were in demand, H&M used the facilities of the manufacturers in Europe. The garments with longer lead times were made in Asia. The garments manufactured at different locations across the world were sent to a central warehouse located in Hamburg, Germany. In every country in which it operated, H&M had a distribution center. From Hamburg, the garments were sent to these distribution centers, from where they were distributed locally. The garments were replenished every day depending on the demand. With constant replenishment, H&M maintained novelty in its products, due to which the customers visited the company’s store repeatedly. The case explains in detail the design, production, distribution and store management processes at H&M.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze H&M’s supply chain management practices
• Study the design, production, distribution and store management processes of H&M
• and Evaluate how H&M, through its efficient supply chain management, was able to bring new designs and trends to the customers in quick time.

Keywords

Hennes & Mauritz AB, Supply Chain Management, Lead Time, Designing, Production, Quality and Security Tests, Distribution, Store Management, Fast Fashion, Supplier Code of Conduct, Product and Information Flow