Benetton Case

Odessa Mauricio        2012-63668                                                      BA 190 Short Case #2

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   Supply Chain 

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Natural Resources                      Sub-Contractors                           Contractors    [pic 2][pic 3][pic 4]

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                                               Manufacturing                      Knitting; Assembling

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                                Benetton Factories

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          Distribution Agents                      Individual Stores                                Customers[pic 11][pic 12][pic 13][pic 14]

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        per geographical area

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2. What are the major objectives of:

        a. Benetton’s retail operations;

The retail operations of Benetton aims to maximize the profitability of its store space. Because they have limited storage space, the inventory of the garments are in the shelf itself. This improves the image of the store because of the color and ambiance that the garments give with its varied colors. Aside from this, it is also easier to see if an item has an available stock or is about to run out. Staff productivity is also higher with this set up. Employees would easier monitor the inventory and physical arrangement of the store and stocks because they need not go to a storage area at the back of the store. This maximizes the quality of service that they are able to provide to their customers. At the same time, while employees go about doing their work in the different parts of the store, they also provide additional security as a deterrent to theft. Overall, its retail operations greatly influence the customer experience that consumers get inside a Benetton store. Ultimately, this unique customer experience in Benetton that has a distinct store set-up that allows you to see the whole array of Benetton products available and a pleasant ambiance influences and reinforces the Benetton branding and shopping experience.

        b. the Benetton physical distribution operation;

Because of the limited space for storage that Benetton stores have, they require speedy and reliable deliveries of garments. From a central point, Italy, where the garments are finally assembled and readied for distribution, products are delivered to distribution agents that are located in strategic locations that cater to a particular geographical area with several Benetton stores. These agents are responsible for developing their respective areas and delivering to the individual stores.

The demand side of Benetton’s supply chain is mainly focused on making sure that the demand of products from consumers are met accurately and promptly. Having an efficient system to manage its physical distribution operations, Benetton is able to successfully achieve relatively fast and dependable deliveries to their stores. By being able to meet the need and demand of consumers, Benetton is able to maximize its sales. Customers are able to get products that they want at a time they want it and shortly after they ask for it.

This set-up also creates accountability and delegation to distribution agents. Because of this, transportation costs and other redundancies related to it are optimized and kept at a minimum. Furthermore, by being known as fast and reliable in the provision of its stocks in stores, Benetton is able to capture its customers’ preference and loyalty. In this way, sales are also maximized – bringing in more profit for the company.

        c. the Benetton factory and its suppliers?

The supply side of Benetton’s supply chain comprises of its manufacturing and supply operations. This side of the business ensures that demanded products are speedily and promptly produced with the best quality and at the lowest price possible.