Benetton's 'Dual Supply Chain' System

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Case Details:

Case Code : OPER065
Case Length : 19 Pages
Period : 1998-2006
Organization : Benetton SpA
Pub Date : 2008
Teaching Note :Not Available
Countries : Italy
Industry : Apparel Retailing

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Benetton Moves to Fast Fashion Contd...

Apart from Benetton's regular twice-yearly new collections, Benetton began to bring in several new collections at different times of the year to meet the changing fashion trends. The time required to restock the stores was reduced and new collections were brought in every four weeks. Commenting on the importance of an efficient supply chain management for Benetton, The Wall Street Journal wrote, "Replenishing its racks with new clothes as often as once a week is helping the Benetton brand get its groove back after years in the retail doldrums. Its success underscores how logistics can be as important as style in the increasingly cutthroat business of mass-market apparel."

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Background Note

At the end of the Second World War, in Ponzano Veneto, a small town 30 kilometers north of Venice, Italy, Luciano Benetton (Luciano) left school, after the death of his father, to work in a clothing store.

Soon, he started a small business with his brothers Carlo and Gilberto, and sister Giuliani, and started producing sweaters, in several bright colors. The bright sweaters immediately attracted the attention of consumers, who were bored of outfits in plain colors.

Initially, he sold these sweaters door-to-door. In 1956, the Benettons launched their own line of sweaters under the label Trés Jolie.

They started Benetton Group as a partnership in March 1965. In the same year, they opened their first store called 'My Market' which sold several collections including the newly introduced Benetton label...

Excerpts >>

4] Stacy Meichtry, "Benetton Picks up Fashion Pace," The Wall Street Journal, April 10, 2007.

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