Supply Chain Management Improvement Strategy And Implementing In Fashion Luxury

The thesis is aimed at introducing a hot topic that nowadays more and more luxurycompanies put effort on the supply chain management, so based on what the writer haslearnt in several years domestic and abroad working experience, the writer will sharewith other companies in the luxury industry a fairly unique view on improving the supplychain management.With the background of global economic crisis and the luxury company’s internalrequirements of no limitation for using its global high quality resources, improving thesupply chain management strategy will be the key factors that can help the company winin the competition. In recent years, in order to support the rapid sales increasing andsatisfied the high demand of Chinese customers, many top luxury companies begin tobuild the subsidiary company in the key city or even in the second or third line city ofChina, causing the whole business operation model of the luxury company shouldinclude not only the domestic business operation, but also include the business operationmodel overseas. G is one of such a luxury company.The writer will proceed to analyze the whole supply chain model including thedomestic and overseas of the company, using SWOT and PORTER’s FIVE FORCESmodel to find the reason of causing the supply chain problem such as high inventory,long delivery lead time and confused procedure is because of the unique and specialoperation model of the luxury company. For example, buyer model, over99%of theproducts dependent on importation and the long production time for hand-made products.Therefore, after finding the supply chain problem, we will start to improve the supplychain management by setting up the SOP for each step of the whole supply chain model,building a KPI system for measuring the performance of each section, establishing aplanning&delivery system, then combine with the actual practice to see whether theresult can make us satisfy.Although the thesis is illustrating the supply chain strategy of company G, due toalmost all the fashion luxury companies has the same supply chain management model,the main purpose of the thesis is to provide a reference for other fashion luxury companies a good way of improving their supply chain management.