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World Co

3. How do the features of the supply chain explain the company’s remarkably short lead times (relative to U.S. apparel supply chains)? Examine the features of the supply chain and identify why the company is able to respond so

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The first feature to me is recognizing how important the supply chain is to the whole operation. That awareness is needed to even be able to understand what would need to be done to create short lead times. Supply chain management was a vital portion of management at Untitled and other World brands. Managers in the company emphasized the importance of having the right product at the right store at the right time, as a way to maximizing profitability. Consequently, forecasting, inventory planning, manufacturing processes, and supplier relations played a crucial role in the company. Terai developing the appropriate mechanisms to link dyeing facilities, suppliers, manufacturers and World in an integrated supply chain was very important.

Over time, the SPARCS system became the basis for managing supply chains for all SPA products at World. Being consistent and able to accurately predict initial demand and aggregate demand forecasting also played a role in the short lead time. World is able to respond so

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effectively because they are committed to very important features of the supply chain such as forecasting, demand planning, inventory, production planning, & information systems. Empowerment as another key characteristic in the World company.

I thought the conclusion summed it up pretty well.

“Supply chain speed is a combination of planning, information systems, production processes, and empowerment.” Terai said. Clearly, supply chain management at World relied on getting a lot of details right. Looking forward, World executives had already introduced or initiated procedures to integrate new information technology solutions in their supply chain to reduce leadtimes even further. Their “dream” projects included a system for optimizing production plans, a data warehouse that incorporated information on individual customers’ buying patterns, seamless information flow among
different firms in the supply chain, and careful tracking and management of cash flow.

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