Business

Do you know what Zara and H&M do to be on the best-in-class Supply Chain list?
  • Anuradha Kapur

  • 3 minutes

  • 19 December, 2020

Do you know what Zara and H&M do to be on the best-in-class Supply Chain list?

An efficient Supply chain streamlines everything from sourcing raw material to delivery of the final product, adjusting and adapting to unexpected situations on the way. It not only gives brands the ability to diagnose an operational glitch and address it at the right time but also be more responsive towards societal needs. In the current scenario when the competition is high, a sustainable supply chain is a source of competitive advantage to boost customer service, reduce operating costs, and improve cash flow. 

Gartner’s Supply Chain top 25 list is the distinguished ranking of brand leaders, recognized for their achievement and advancement in supply chain capabilities. For this list, brands are evaluated on business health (ROPA, Inventory turns, Revenue) and Social responsibility metric (environmentally responsible supply chain). 

Only 2 Fashion brands have made it to the list so far, they are Inditex or Zara, and H&M. Zara has been on the list since 2010 and H&M since 2012

What makes them a class-apart? 

Their innovative demand-driven business model is centered around the customer’s decision-making process. The specialized real-time, demand shaping, and demand sensing tools help them immediately respond to market changes, increase flexibility, and speed of bringing innovative designs to the market. Zara offers 24 new clothing collections and H&M offers 12 to 16 collections each year.

Zara’s RFID technology ensures accurate inventory count and faster deliveries to the end consumer, while H&M through Treadler, its B2B service, helps clients accelerate sustainable change by overcoming internal barriers and accessing benefits of its global long-term supply chain partnerships for viable growth. Businesses today are not only implementing best-in-class technology to meet true customer demand but also building sustainable partnerships for Industry and environmental benefits. 

How can you join the leader’s pool?

INCREFF’s sustainable, cost-effective SaaS solutions, WMS, Cloud Warehousing, and Merchandising are built for inventory optimization for both online and offline channels. Our cloud-based platforms are extremely easy to learn and use, without supervision. The best part is, we can get you started in less than 7 days. 

Increff WMS allows simultaneous 100% inventory exposure across all sales channels, so no piece is left behind. Its live-inventory sync feature captures instant sales even during peak time so your potential buyers know the exact availability and there are fewer cancellations. Low cancellations deliver a better customer experience, add value to the brand and build trust. 

While Increff WMS is a fully automated and scan-based tool in itself, Increff’s Cloud warehousing service that runs on Increff WMS lets brands have on-demand access to warehouses in multiple cities. There is no use of paper & pen and no human decision-making to minimize errors or delay in execution. Each piece is assigned a fully trackable unique piece barcode (UPB), which is more accurate than RFID. Once scanned, the location of a piece is recorded and referred to when pick-paths are defined at the time of order picking. Pick-paths are linear so there is no back and forth, and the picker’s time is most efficiently utilized. Return processing is fast and strict as the rejected piece is immediately moved out of circulation and its UPB is tagged with the reason of rejection. 

Increff Merchandising Solution is a cloud-based intelligent merchandising, buying and distribution platform that enables merchandisers to take pre-season and in-season decisions like what, when and how much to buy and where to showcase inventory via 100+ customizable patent-pending algorithms designed specifically for fashion and lifestyle business. For online sales, it analyses order location and distributes stock to ensure fulfillment from the local warehouse, reducing air shipments and logistics costs by nearly 70%.

The Global fashion industry has been heavily criticized for causing irreparable damage to the environment. Luxury fashion brands prefer to burn millions of dollars worth of clothes to prevent counterfeiting and protect intellectual property. We can help you protect the environment through our initiative of donating unsold inventory to the needy who cannot afford to buy good quality clothes.  

If you are sitting on a large pool of inventory and looking for a smart tech-tool that can help your brand realize its true demand potential, then you have reached the right place. Contact us today!

Author: Anuradha Kapur

Do you know what Zara and H&M do to be on the best-in-class Supply Chain list?