United

colors of
Benetton
United colors of Benetton
Benetton Group S.r.l. is a global fashion brand based in Ponzano Veneto, Italy founded in 1965. Benetton Group has a network of about 5,000 stores
in the main international markets.

Benetton is known for its sports sponsorships, and for its "United Colors" advertising campaign. In 1982, Benetton hired Oliviero Toscani as creative
director, which led to a change in advertising focus towards raising awareness for various issues worldwide.[5] In 1984, Toscani photographed the first
multiracial ad for the brand

Suply chain of Benetton

• Company outsourced all kinds of labour intensive production such as tailoring,finishing,ironing,investment strategy
• Operations usch as weaving,cutting,dying and quality control are kept internally.
• Benetton maintained Central pole located near head quarters to manage production logistics and distribution.
• Consolidated central shipping central saved 20% of the transportation cost

Benetton’s operations-Purchasing
• Purchasing was centralized.
• One of the largest buyers of wool in the world.
• Benetton had 180 suppliers who supplied the raw materials.
• Benetton had gone in for vertical integration its suppliers
 Pricing & facility

It determines how much a firm will charge for goods and services.
Affects the behaviour of the buyer of goods and services
It is a factor that gears up profits in supply chain through an appropriate match of supply and
demand.

United Colors of Benetton offers high quality apparel at a slightly premium price, which has a
high demand as well. The brand focuses on fashion and authenticity and boasts of offering its
products at a “democratic price”. All the products of United Colors of Benetton are moderately
priced as compared to its competitors despite offering a wide range and varieties in its
creations.

Facilities- They are where the products have been stored, assembled or fabricated. The better
the management of the location, capacity and flexibility of these facilities, the more positive
impact they will have on the supply chain process. There are two types of facilities- Production
sites(factories) and storage sites(warehouses).
 Transportation & sourcing

Sourcing- sourcing is business processes related to the

procurement of good and services. Sourcing takes two forms.
1. In-house or Outsourcing 2. Supplier selection

Transportation- Transportation of inventory involves

moving it from one point to another. Fast modes of
transportation can improve the efficiency and
planning of the supply chain
Information
• Data regarding all the customers are analysed. It is the most important driver because it affects the performance of
the of the other drivers. This driver will provide data even to the customer.
• Digital media
• Events in pop up locations and distributing promotional items

Inventory

• All the raw materials, WIP(Work-in-Process) and the FG(Finished Goods) come under inventory. The amount of
inventory is an important driver of the supply chain because it determines whether a supply chain network is efficient
or responsive.