Global Supply Chain Management Writing Assignment

Strategic Plan for Fast Fashion (F&F)’s Supply Chain Management in Nigeria
Presented by
Offem Offem Ubi
28034657
Tutor: Dr Fariba Darabi
Table of Contents TOC \o "1-3" \h \z \u 1.Introduction PAGEREF _Toc11167540 \h 32.Mission, Vision and Values of Fast Fashion (F&F) PAGEREF _Toc11167541 \h 42.1.Mission of Fast Fashion (F&F) PAGEREF _Toc11167542 \h 42.2.Vision of Fast Fashion (F&F) PAGEREF _Toc11167543 \h 52.3.Values of Fast Fashion (F&F) PAGEREF _Toc11167544 \h 53.Strategic Improvement Approach of Fast Fashion (F&F) PAGEREF _Toc11167545 \h 63.1.Strategic Objectives PAGEREF _Toc11167546 \h 63.2.Enhancing the Organizational Performance PAGEREF _Toc11167547 \h 73.3.Integrated Operations of Fast Fashion (F&F) PAGEREF _Toc11167548 \h 84.Theoretical Analysis and Implementation PAGEREF _Toc11167549 \h 84.1.What is Supply Chain Network? PAGEREF _Toc11167550 \h 84.1.1.The Supply Chain Network of Fast Fashion (F&F) PAGEREF _Toc11167551 \h 94.2.Significance of Supply Chain Management PAGEREF _Toc11167552 \h 104.3.Performance of Supply Chain PAGEREF _Toc11167553 \h 114.4.What is Global Supply Chain Management? PAGEREF _Toc11167554 \h 124.4.1.Sourcing, Manufacturing and Distribution of Fast Fashion (F&F) PAGEREF _Toc11167555 \h 135.Effective Implementation of Strategy PAGEREF _Toc11167556 \h 165.2.1 Inventory Strategy PAGEREF _Toc11167557 \h 185.2.2. Procurement Strategy PAGEREF _Toc11167558 \h 185.2.3. Sourcing Strategy PAGEREF _Toc11167559 \h 186.Performance Metrics PAGEREF _Toc11167560 \h 197.Recommendations and Conclusions PAGEREF _Toc11167561 \h 19References PAGEREF _Toc11167562 \h 22
Strategic Plan for Fast Fashion (F&F)’s Supply Chain Management in Nigeria
1 Introduction
Fast Fashion (F&F) is a local fashion retail company based in Nigeria and got founded in 2012, serving a business notion of providing the good-quality product at affordable prices while preserving sustainability. For children, women, and men, it serves as a fast-fashion house. It is also one of the 2nd famous retailers of fashion in Nigeria. As of 2016, it has around 45 supplier factories and more than 620 employees. For the past 5 years, it has been in operations and since then it has been rapidly growing. Currently, it has more than 40 stores locally with a critical focus on growth markets. According to Atwal & Bryson (2014) with the influx of global fashion retail brands stepping into the Nigerian market over the last years, fashion lovers and business insiders are eager to see what is coming ahead. However, when it comes to shopping conventional bricks and mortar retail format is mostly preferred by Nigerian consumers. Only relatively few amounts of consumers in the country are attracted to the convenience provided by online stories.
Nevertheless, substantial challenges are faced by Fast Fashion (F&F) in Nigeria. Although the company tries to adapt its business model and its products to the new market for facilitating the entry in a completely different cultural market country. The company has a strong corporate social responsibility image and is indeed involved in various environmental and community projects. However, as Jin & Cedrola (2016) indicated that due to various scandals criticisms have been faced by the Fast Fashion (F&F) brand. Moreover, Fast Fashion (F&F) has been able to maintain its strong financial image due to its low prices policy despite the economic crises due to which a huge decline in consumption has resulted. In Nigeria, Fast Fashion (F&F) are facing difficult challenges like electronic diversion as well as the economic downturn. Addressing these complex challenges faced by the business and delivering the expected outcomes has become mandatory for Fast Fashion (F&F) in Nigeria. Therefore, maintaining excellent customers service levels, business growth, increasing the business performance and lessening the costs must be focused by the management of the retail store by collaborating with the local business suppliers and partners of Fast Fashion (F&F) in Nigeria.
According to Mangan, Lalwani & Lalwani (2016), in today’s world global supply chains are being adopted by organizations as it helps them in lessening their costs. Significant benefits can be gained by companies through lower costs of production and further, the can produce large-scale effectiveness and can outsource from non-core activities to free capital. Companies going global with the help of global supply chains can also acquire access to new technologies through partnerships with international firms, can enable business growth, and can enter into new markets. This strategic plan will focus on how Fast Fashion (F&F) can manage its supply chain in Nigeria. The key objective of this plan to provide a brief picture of the retail company to acquire its objectives, such as entering into a new market, increasing its business growth and creating partnerships with international firms. It will reflect upon supply chain strategies that will be helpful in managing the supply chain of the company. Further, it will propose the plan for global sourcing, plan for distributing of the product, plan for operation strategies, and plan for global logistic. Last but not least, this strategic plan will also provide effective guidance to Fast Fashion (F&F) Nigeria in enhancing its core services and operations.
2 Mission, Vision and Values of Fast Fashion (F&F)
1 Mission of Fast Fashion (F&F)
Collaborations with the business partners so that adequate support can be provided to the sales department for delivering lean, flexible, and timely solutions of supply chain management is the key mission of Fast Fashion (F&F) Nigeria. This specific objective is acquired by Fast Fashion (F&F) by creating rigorous associations with several other partners of the business along with comprehension of their needs as well providing a value-added solution for increasing the competitive position of the organization. For driving measurable enhancement in the supply chain, the approach of lean six sigma is implemented by the company as well as the correct suppliers with the adequate potential at the right time are engaged by the company.
2 Vision of Fast Fashion (F&F)
Assuring excellence of supply chain management in Nigeria is the key vision of Fast Fashion (F&F). Continuous efforts of integrating the best supply chain management practices have been made by the company in the last few years. In addition, significant steps also have been considered by Fast Fashion (F&F) Nigeria by changing the organizational structure for leveraging the efficiencies and spending completely. Moreover, for facilitating the material management and sourcing procedures, advanced technologies have also been implemented. Whereas, the employees’ competencies and capacities. Fast Fashion (F&F) has availed important opportunities right after it penetrated into the Nigerian market. However, for enhancing its main areas, the company still can avail a lot of opportunities. As its key vision is not only the implementation of effective techniques of the supply chain but also to enhance the consistency and speed of the supply chain management executives who are working with business partners. For acquiring a significant competitive edge, it is necessary for Fast Fashion (F&F) Nigeria to be agile and innovative so that the value present in the changing markets can be optimized by it. Moreover, these collaborative efforts will not only increase the efficiencies and effectiveness of the company’s processes, but it will also enhance customer satisfaction, revenue generation and minimization of the costs.
3 Values of Fast Fashion (F&F)
Since one of the major essential elements in acquiring organizational growth in Nigeria is understanding the customer’s needs, therefore, this is emphasized strongly by Fast Fashion (F&F). Along with this, to assure equality among the employees, positive work environment, as well as diversity, are focused and emphasized strongly by the retail brand. One of the key beliefs of Fast Fashion (F&F) is collaborative working and teamwork with the local distributors, suppliers, and partners. Moreover, employee empowerment, professional development, and work-life balance are also supported by Fast Fashion (F&F). Changes are continuously embraced and quality is consistently focused by its employees. Thereby, highest and adequate moral standards will be followed by the actions of Fast Fashion (F&F) Nigeria.
3 Strategic Improvement Approach of Fast Fashion (F&F)
4 Strategic Objectives
According to Wolf (2014) the strategic plan of the organization must be aligned with the strategic planning objectives of the supply chain in such a manner that the significant competitive edge is acquired by the company. These objectives must also involve supply chain management, the advantage of competitive management, and customer satisfaction. The accomplishment of these objectives means producing excellent customer service and creating huge value. Whereas, the procedure to accomplish these objectives is to develop, manage, and anticipate the objectives of the organization. A plan for building various situations in the external and internal environments of the company is the key objective behind strategic planning. Further, to align the organizational objectives and the supply chain objectives and to acquire brilliant customer satisfaction, the adequate planning of needs of user demand and correct usage of resources is done. Therefore, the operation of a consistent supply of the activities and the products must be facilitated by the management of the supply chain of Fast Fashion (F&F) Nigeria.
This specific strategic plan will reflect upon supply chain strategies that will be helpful in managing the supply chain of the company. Further, it will propose the plan for global sourcing, plan for distributing of the product, plan for operation strategies, and plan for global logistic. Last but not least, this strategic plan will also provide effective guidance to Fast Fashion (F&F) Nigeria in enhancing its core services and operations.
5 Enhancing the Organizational Performance
It is highly important that the resources, as well as the organizational structure of Fast Fashion (F&F), must be adaptable, responsive, and flexible to the changing business needs of the retail sector for competing in the present environment of business. This strategic plan will also assist Fast Fashion (F&F) in maintaining the agile, responsive, and competitive supplier base of Fast Fashion (F&F) that represents the diversity of the community of suppliers in Nigeria. In addition, through the integration of the management dashboard for monitoring, reporting, and tracking the supply chain performance of the retail brand, the performance of Fast Fashion (F&F) will be increased.
Moreover, Fast Fashion (F&F) in Nigeria is also considered as the trusted business partner whose responsibility is to deliver positive financial results continuously with the help of focused cross-functional teams. Along with this, strengthening the organizational performance is also the key intention of the organization by refining the commodity groupings for accomplishing the available opportunities for the company as well as the benefit of the strengths. Further, for impacting the purchasing behavior throughout the company that will decrease the costs, a demand management organizational structure and processes will be implemented by the retail brand. Moreover, through consolidation, renegotiation efforts, and supplier contract compliance, the company also aims to increase transportation purchasing. In addition, a robust workforce will also be built by Fast Fashion (F&F) in Nigeria which is prepared well for future business challenges.
Last but not least, the appropriate mixture of knowledge, skills, and expertise will be inherited by the team members of Fast Fashion (F&F) Nigeria. The key objective of the leadership management of Fast Fashion (F&F) will be to create an atmosphere where open communication, risk-taking, and innovation are supported for acquiring supreme levels of the performance. Moreover, the employees’ performance will be increased by mentoring different employees, coaching such employees, increasing career progression, and expanding the recognition programs based on the employee.
6 Integrated Operations of Fast Fashion (F&F)
To perform the order-drive manufacturing from semi-finished inventory instead of forecast-driven production two decoupling points namely information decoupling point and material decoupling point are utilized by Fast Fashion (F&F) so that a combination postponement and speculation strategy can be used by the company. This is possible with its strategic use of both process standardization (at fabric sourcing and design process) for fashion products in their product line and process re-sequencing for the basic products. Moreover, the order-to-delivery lead time and product development are reduced and the costs of market mediation for both fashion and basic category apparel products are removed ultimately by the utilization of push-pull supply by Fast Fashion (F&F) in its supply chain operations and apparel manufacturing significantly.
4 Theoretical Analysis and Implementation
7 What is Supply Chain Network?
According to Christopher (2016) an effective supply chain network (SCN) can be created if sufficient components are purchased by organizations. It defines the movement and flow of information and materials by connecting the organizations together for serving the end-customers. As it is the collection of supporting systems, transportation vehicles, and physical locations through which the services and products are delivered and managed by the firm. Supply chain networks also allow to look at the throughout movements of information and materials from begin to end. It also allow organizations to perceive the value in working together and the value in creating partnerships to assure the possible value is offered to the end consumer.
As Monczka et al., (2015) indicated an evolution of the basic supply chain can also be referred to as supply chain network. The supply chain network can be developed by organizations with the help of rapid technological advancement that have a basic supply chain into a more complex structure including a higher level of connectivity and interdependence between more organizations. Moreover, the supply chain network can also be used for highlighting the interactions between the different organizations as it can be used for highlighting the communications and interactions between organizations. Supply chain networks are even now more global than ever and are structure typically with five major areas such as transportation assets, demand zones, distribution centers (DCs), production centers, and external suppliers.
1 The Supply Chain Network of Fast Fashion (F&F)
At times, it becomes quite difficult for F&F to supply the orders according to the recent demands. Although F&F has a flexible business model for delivering the excellent output to its customers as per their requirements and to adapt to new changes according to the season. Whereas, after an extensive market research the particular retail locations are chosen to assure that target market segments of F&F are of relevant size in the specific locality for rendering the store financially. Moreover, F&F always locate its stores in most up market with prestigious locations and high traffic. Opportunities are provided by these prime locations to the customers for browsing the stores. The supply chain network of F&F involves retailing, distribution, manufacturing and sourcing, order and design administration. Below stated is the graphical representation of its supply chain network:
8 Significance of Supply Chain Management
In the course of recent years, supply chains of makers and retailers have turned out to be progressively connected. In numerous parts, retail deals create substitution orders from makers. Makers with a timely store network can naturally recharge retailers' racks as items are sold. As joint effort expanded, the extra information given by store network accomplices enabled organizations to utilize a propelled investigation instrument to improve their main concern. Here are a few models: first, improve the portion of accessible stocks to vow. Current instruments powerfully designate assets and plan work as per deals figures, pending requests and the guaranteed conveyance of crude materials (Gold, Seuring & Beske, 2010). Makers can affirm the conveyance date of the item when the request is put, which essentially lessens the poor satisfaction of requests. Second, unique value improvement.
Occasional items, particularly style items, have a restricted timeframe of realistic usability. Any individual who does not sell toward the finish of the period will be disposed of or sold with critical limits to discharge the store. Aircraft, inns, and different organizations whose items are constrained however short-lived adjust costs progressively to satisfy a need. In spite of the fact that it is progressively troublesome with garments and different items whose supply can shift significantly, comparative estimating systems can improve edges. Third, improve the portion of accessible stocks to the guarantee (Amir, 2011). Current devices progressively designate assets and plan work as indicated by deals figures, pending requests and the guaranteed conveyance of crude materials. Makers can affirm the conveyance date of the item when the request is put, which a...