Global Logistics & Supply Chain Management of H&M (2024)

FAQs

What type of supply chain does H&M have? ›

A typical fashion supply chain

From raw materials to finished garment, our products pass through many different suppliers on their journey to our stores. These suppliers are arranged into several tiers to make our supply chain. Each tier does business with its immediately adjacent tiers.

the three critical challenges facing global supply chains: labor shortages, equipment availability, and the ripple effect of global bottlenecks. how companies are navigating a climate of persistent unpredictability.

This course encompassess activities and techniques utilized in supply chain and logistics management including customer service, distribution planning, transportation planning, transportation forecasting, logistics documentation, purchasing and third party chain management.

Global Supply Chain Management (GSCM) is the science of planning how the distribution of goods and services will make it from manufacturer to consumer. Global supply chain management is one of the most important disciplines in 21st century business.

Not having any factories of its own, it utilises over 700 partner companies in more than 20 countries, relying on a network of external suppliers to manage its buying and production. H&M purchases garments from around 750 suppliers, with 60% of production taking place in Asia and the remainder mainly in Europe.

H&M does not depend on third party for its logistics and uses its own logistics services in the name of “H&M International Transportation, Inc.” H&M mainly uses Railways, Waterways and Roadways as their mode of transportation to Page 4 Vol-5 Issue-4 2019 IJARIIE-ISSN(O)-2395-4396 10784 www.ijariie.com 1560 deliver the ...

The most significant factors impacting supply chain risks are environmental, geopolitical, economic, and technological.

Rising price of fuel to transport goods by road, sea or air. Increasing commodity prices raising the cost of raw materials. Higher labor costs from suppliers and manufacturers. Complex international logistics leading to higher charges for storage, transfer and management of products.

The Top-level of this model has five different processes which are also known as components of Supply Chain Management – Plan, Source, Make, Deliver and Return. Let's deep dive into each component: Plan: Planning is imperative to control inventory and manufacturing processes.

What is the importance of logistics and supply chain management? ›

Logistics plays an essential part in supply chain management. It is used to plan and coordinate the movement of products timely, safely and effectively. Customers now not only include your neighbors and local friends; they include people from across the globe, as well.

In this expanding economy, supply chain managers play an important part in the business world, which means that workers with a supply chain management degree are in high demand. With a degree or certificate, you can gain a great career with an impressive salary, and it won't take you long to start earning.

Effective supply chain management enables companies to improve product flow through accurate demand and sales forecasting and also improve inventory management to arrest the bullwhip effect and avoid underproduction.

One of the main benefits of supply chain management is its ability to decrease costs by improving inventories, adapt according to customer requirements, stabilizing relationships with distributors and vendors.

The retailer pledged to reach 100% recycled or sustainable materials across the company's supply chain by 2030 and 100% sustainable cotton sourcing by 2020. It has an entire collection dedicated to showcasing more sustainable sourcing.

H&M ban the use of hazardous and environmentally damaging substances thoughout all production processes. All H&M suppliers commit to comply with our requirements and are educated in how to run production to our standards. Regular controls and inspections are also conducted to ensure your safety.

At present, shipping via sea or rail is the main mode of H&M's transportation from supplier to distribution centers (more than 80% of the volume).

As seen in the present graph, China, Bangladesh and India are top three locations where H&M sources its products. This is also true for. In Sweden, where the retailer is headquartered, there are a total of 21 suppliers and factories manufacturing H&M's clothing products and accessories.

In product manufacturing, the supply chain facilitates the transfer and transformation of raw materials into finished products. From there, the manufacturer transports and distributes the products to a retailer or directly to a consumer.

Is HM centralized or decentralized? ›

Nevertheless, H&M has a decentralized system. There are 20 production offices dealing with 800 suppliers, and 20 country offices within 33 sales countries, handling all business affairs for the region it responsible for. Planning and organizing, such as store operation, advertising are carried out by managers.

Inventory

Inventory management is critical to the function of supply chain management, because without proper inventory management the production, as well as sale of the product, is not possible.

Driver shortages, logistics provider capacity issues, inflation, shipping delays, increased freight costs, depleted inventory levels, labor shortages and dealing with demand peaks have all dominated discussions and required attention.

SCM Helps Sustains Human Life – Humans depend on supply chains to deliver basic necessities such as food and water. Any breakdown of these delivery pipelines quickly threatens human life. For example, in 2005, Hurricane Katrina flooded New Orleans, LA leaving the residents without a way to get food or clean water.

Supply chain management is the practice of coordinating the various activities necessary to produce and deliver goods and services to a business's customers. Examples of supply chain activities can include designing, farming, manufacturing, packaging, or transporting.

Supply chain management is the handling of the entire production flow of a good or service — starting from the raw components all the way to delivering the final product to the consumer.

What is the most important thing in logistics? ›

A major element of logistics that most will recognise is transport. This includes all modes of transport including road vehicles, freight trains, cargo shipping and air transport. Without transport, goods would be unable to move from one stage to another within a supply chain.

With an automated, cost-effective logistics system, a company can implement major strategic changes and improve operational efficiency. It also improves scalability, reduces manual errors, and provides a proactive approach to customer satisfaction.

Is Studying Supply Chain Difficult? Because supply chain management is so diverse, its learning difficulty will depend on the things you find easy and hard. Below are some scenarios. Fundamental math and language skills can make many of supply chain management's aspects more accessible.

Many people find classes in supply chain management challenging because they rely on the incorporation of soft and hard skills. Good supply chain managers must balance logic with soft people skills, which some people find difficult to do.

That's right! U.S. News & World Report ranked logistician number 18 on their 2020 Best Business Jobs list. Several factors contribute to these rankings, including median salary, unemployment rate, job prospects, work-life balance and stress level.

Global Supply Chain Management (GSCM) is the science of planning how the distribution of goods and services will make it from manufacturer to consumer. Global supply chain management is one of the most important disciplines in 21st century business.

Global logistics creates place utility by making products available for purchase or consumption anywhere in the world: value is added through eliminating distance by moving raw materials and final products from point of ori- gin to point of consumption efficiently and in the required quantities.

Use stock planning and forecasting software

Planning, forecasting, replenishment and optimisation of stock can even be automated, with software such as Valogix. It can improve item availability, reduce stock-holding, minimise out of stock situations and even bring an increase in sales.

How supply chain improve customer satisfaction? ›

As seen in the present graph, China, Bangladesh and India are top three locations where H&M sources its products. This is also true for. In Sweden, where the retailer is headquartered, there are a total of 21 suppliers and factories manufacturing H&M's clothing products and accessories.

At present, shipping via sea or rail is the main mode of H&M's transportation from supplier to distribution centers (more than 80% of the volume).

In product manufacturing, the supply chain facilitates the transfer and transformation of raw materials into finished products. From there, the manufacturer transports and distributes the products to a retailer or directly to a consumer.

H&M is the second largest apparel retailer in the world, just behind Inditex SA. With 2,600 stores in 43 countries, H&M was a pioneer in pursuing vertical integration with its own distribution network. The company's clothing collections are created in Sweden by approximately 150 designers and 100 buyers.

' It offers Conscious collections, made from sustainably sourced materials and the products dropped off at in-store recycle bins, and it uses eco-friendly materials in some products, such as organic cotton and recycled polyester.

The name is changed to Hennes & Mauritz when Erling Persson buys the hunting and fishing store Mauritz Widforss in Stockholm, including a stock of men's clothing. This is the start of sales of men's and children's clothing. 1974. H&M is listed on the Stockholm Stock Exchange. 1976.

H&M doesn't own factories. Its products are produced by 850 independent suppliers, mainly in Asia and Europe. Usually products with longer lead times are produced in Asia and products with shorter lead times are produced in Europe.

H&M is offering third parties access to its supply chain and logistics network as part of its sustainability push. Called Treadler, the B2B initiative will provide a range of services including product development, sourcing, production and logistics.

H&M ban the use of hazardous and environmentally damaging substances thoughout all production processes. All H&M suppliers commit to comply with our requirements and are educated in how to run production to our standards. Regular controls and inspections are also conducted to ensure your safety.

Is H&M supply chain Lean or Agile? ›

H & M is very much dedicated to make profits by reducing costs and increasing demand for it products by providing customers what they want. So therefore H & M uses both the lean and agile strategy to manage its supply chain management.

Supply chain management is the handling of the entire production flow of a good or service — starting from the raw components all the way to delivering the final product to the consumer.

Accurate information about a supply chain saves companies money. It helps manufacturers and retailers produce and transport only what they can sell. This eliminates the unnecessary expenses associated with producing, insuring, and shipping inventory a company can't sell.

Vertical integration involves the acquisition of a key component of the supply chain that the company has previously contracted for. It may reduce the company's costs and give it greater control of its products. Ultimately, it can increase the company's profits.

Vertical integration occurs through the merger or acquisition of companies at different stages of production or distribution within the same industry. To accommodate and support the demands of fast fashion, this integration model helps to strengthen the supply chain.