Supply Chain Management at World Essay Example

to emphasize their supply chain management capabilities at World Co.

, LTD. ” Page # 2 is the sole distributor of specific products, unlike Japanese sellers who typically showcase just one type of product to create the illusion of exclusivity. Maintaining this tradition is crucial to the company as it emphasizes the importance of uniqueness. World also focuses on catering to specific customers through creating merchandising groups for each brand.

By learning from each other's successes, these groups provide mutual support. Additionally, each group has the autonomy to determine their own brand, which gives them the ability to promptly react to market signals (Raman; Fisher 3). World regularly evaluates their brands in light of the evolving fashion landscape, which helps keep their products contemporary and desirable.

World has a powerful accessible information system consisting of inventories entering and exiting each store. The factories were located in Japan to quickly respond to small changes and reduce shipping time. Domestic factories work closely with merchandisers to adjust production based on demand. To maintain brand aesthetic, World matches designers with target customers, leading to greater sales growth per square foot compared to U.

S. quality stores prioritize having the correct product assortment in the right location and at the correct time to increase profitability, according to Raman and Fisher (5). Accurately predicting customer demand is a crucial element of product sales. World utilizes both initial and updated demand forecasts, with the initial demand forecast serving as an aggregate demand forecast.

World Co. Ltd.'s supply chain management involves two types of forecasting systems: distribution side and category-side forecasts. The former considers factors such as historical data and growth rates of current stores, seasonality, competitor

behavior, and macroeconomic changes. The latter is based on historical data, market trends, and anticipated expenses for the brand. Each store utilizes both forecasting methods, and the result with the higher value is ultimately chosen (Raman & Fisher 7).

The Obermeyer process includes forecasting, exhibiting and vote balloting to predict sales and production of a product. To improve order accuracy, initial forecasts are updated. According to Raman and Fisher, Terai contended that surviving in a competitive environment requires speed, responsiveness, careful planning, powerful information systems, well-organized production processes and empowerment (8-10).

By utilizing these factors effectively, a company can adapt to its environment and outperform rival manufacturers irrespective of racial dominance or colonial mentality (Raman and Fisher, 2001).