Register as a Premium Educator at hbsp. Publication Date: April 27, Source: Harvard Business School. We evaluate the impact of a supply chain pilot implemented at Hugo Boss. This pilot entailed altering the way in which Hugo Boss orders from its suppliers. We explore the challenge of assessing the impact of supply chain change, the link between operational performance and firm performance, and the relationship between sales, inventory, and product availability.
If you'd like to share this PDF, you can purchase copyright permissions by increasing the quantity. Quantity price applied. Add Copyright Permission. Copyright Permission Qty:. Current Stock:. Buying for your team? Constantine Moros, working as the head of operations and procurement for the entire division and Mr. Katja Ruth, working as the division's director were sitting and evaluating the up-to-date financial and operational statistics of Hugo Boss, which had been stemmed from the application of Supply chain optimization pilot in its hosiery Division and global body wear.
Both of these were completely agreed upon the accomplishment of the plan and its consequences in terms of lesser inventory to sales ratios and improved product availability for the overall stock keeping units SKUs present in it. Both of them actually knew that the majority of the retail customers may look for a substitute or delay the buying decision of an unavailable product, or take their entire order somewhere else.
Moros had basically observed the two basic potential explanations or reasons behind the stock out condition in the overall inventory of the company that stock outs frequently happened during the major retail tenure such as in the month of December, and the other reason is the difference in product styles.
Most importantly, he had basically calculated a loss of around 1. Moros had recognized several prospects for the improvement of the overall supply chain management while studying the current flow of products.
Moreover the company had executed the SCO Pilot based project in the 31 st week of the year , which simply resulted in the lower in-hand inventory altitudes and had enhanced the product availability for the never out of stock items.
This is just a sample partial case solution. Hugo Boss AG is a german clothing producer Metzingen-based. Hugo Boss is not only producing clothes…. The Group markets its products under the brand names Boss, Hugo and Baldessarin. Sales are up to million dollars. In , the sells are up to 30 billion dollars and for the first time more than half of the…. Product leadership, intimate knowledge of their market and customers, and operational excellence are what distinguish the company from others in the luxury fashion goods industry.
From an operational perspective, the variability that exists as a result of designing and manufacturing short run fashion products is high. This perpetual shifting of demands and preferences….
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