SUPPLY CHAIN OPTIMIZATION AT HUGO BOSS Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

SUPPLY CHAIN OPTIMIZATION AT HUGO BOSS Case Solution

ANSWER: 01

In 1923, Hugo Boss was founded in the German town of Metzingen. The company is considered as a most popular brand in the market due to its high-quality men's and women fashion Apparel, accessories and shoes. The company started by offering men's apparels and after achieving high growth in the market, the company expands its business to the other lifestyle clothes for both men's and women's. Hugo Boss generates comparable sales growth in its both business and casual wears. In 2006, Hugo Boss earned total sales of 46% for its casual wears and approximately 44% for its business wears. On the other hand, accessories and shoes accounted for approximately 10% sales. Currently, the company operates its business from 100 different countries and has 5500 retail points of sales which ensure the leadership of the company as well as ensure a leadership position in the men's fashion wears around the worlds. Moreover, inorder to differentiate its brands from other luxury brands, the company believes in the operational excellence, product leadership and market intimacy. However, Hugo Bossfaced intense competition from other competitors fashion brands which include, Armani, Prada and Ralph Lauren. Furthermore, the company gives more priority to its customer in order to satisfy the customers need in the fashion markets. The company is fully responsible for understanding the need of the Hugo Boss customers which not only bring improvement in the retail process, however, also improves the supply chain process of the company.

The company has two different brands which include Hugo and Boss. The company further divides these brands into five subsidiary lines in order to meet the needs of the women and men's fashion wear segments. Moreover, the company produces Terry wear, body wear and nightwear loungewear for boss black segment lines. The company’s bodywear brand earned maximum 53% sales which are higher than other brands as well as the company earned net sales of 33040259 pounds from this division. However, the company further segmented these brands for replenishment type.

In order to bring the fashion outfits in the market, the company used the following key steps. Initially, the management team negotiated the contract with the manufacturers and guides them about the schedules of production capacity as well as workforce scheduling and material procurement. For NOS items, the company ignored the preproduction, prototyping and design step for which the company does not need any improvement. The company performs the quality checks, production plans, arrangement of shipment for the factory and warehouse storage activities for its NOS items. Moreover, in order to bring the efficiency and responsiveness of the supply chain operations, the company set up the procedure in which the company easily quantifies the impact of the warehouse. After implementing this process, the company observed that mostly during the replenishment retail period company's stock get out of hand. The stock out pattern differed across product styles. After analyzing the company's situation, it is evaluated that company bear a loss of 1.1% revenue on its net sales in 2004.

In order to improve the supply chain processes, the company also used the process mapping exercises in its operation that would help the company in tracking the order on a timely basis as well as understand the complex interrelationship between inventory, availability and sales. In a view to improving the efficiency and responsiveness of the supply chain process, the company agreed up the numerous steps that would be beneficial for the company and bring profitability in the organization.................

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