HENNES & MAURITZ1

SM Anowarul Alam Rahul Aggarwal

2010
Samandeep Kaur Vikas Dhawan
 Presentation Overview
• Structure • Inventory Ratios
• Basic Information • Corporate Goals

• Supply Chain
• Logistics
• Procurement Cost
• Lead Times/Cycle
Time
 Structure

HeadOFFICE(SWEDEN)
HEAD office (sweden)

HR PRODUCT BUYING
Marketing ION LOGISTIC
FINANCE
37 COUNTRIES

CANADA
SUPPORT OFFICE
TORONTO VANCOUVER

HR Marketing LOGISTIC FINANCE

RETAIL STORES
 Supply chain flow

Raw materials of
Ff Trucks/Train 700 manufactures Oceanic 37 countries
clothing
Asia / Europe Ship yard
Asia/ Hong Kong Air

Trucks Railways

Customer Trucks Distribution centers

customers 22 outlets/ stores
Service Toronto/ vancuvor
 Logistics

• Transportation
• Demand forecasting
• Ware house/ Distribution Centres
• Inventory control
(Right set up Replenishment)
 Basic Information
• Number of Suppliers
H&M doesn’t own factories. Products are bought from 700 independent suppliers, primarily in Asia and
Europe
• Inventory Levels
High
Low
• Warehouses
31 warehouses globally
• Revenue
CAD 16,665.06 million(2009)
CAD 4084.94 million(2010 first quarter)
• Developments
H&M has its largest warehouses and office space under construction in Poland, (126,000 m2). The
warehouse is to be equipped in automated storage systems.
• Expansions
240 stores in Europe and Asia
 QUANTITATIVE INFORMATION OF LOGISTICS
Procurement Costs (Local/Overseas-2009)
COST CATEGORY LOCAL OVERSEAS

Resource Planning 0.004%

Supply Sourcing 0.001%
Negotiation 0.001%
Order Placement 0.15%
Inbound Transportation 0.06% 0.001%
Storage 0.03% 0.001%
Handling 0.08% 0.005%
Quality Assurance(Tests) 0.009%
Supply Continuity 0.001%
New Sources 0.001%
Average cost - 0.18% 0.17%
Total Procurement Cost - 0.35%
 Lead times/Cycle times
(It depends on products demand)

Items Sea Air

Lead times:
Sweater 60 – 180 Days 15 – 60 Days
Woven 60 – 180 Days 30 – 60 Days
Knitwear 45 – 120 Days 15 – 45 Days
Cycle times:
Sweater 135 – 195 Days 20 – 65 Days
Woven 135 – 195 Days 35 – 65 Days
Knitwear 120 – 165 Days 20– 50 Days
 Inventory Ratios
Ratio Type

Ratios
Vendor inventory ratio

10 out of 100
Retailer inventory ratio

100 out of 1000

1000 out of 1000
 Corporate Goals
• Objectives
Environmental awareness
Respect for nature
Sustainable use of resources
Healthy products
Clean production chain
Green transport
Full compliance with the Code of Conduct
Factory workers able to demand their rights
Compliance with the Code of Conduct upheld by means of efficient management system

• Productivity
Provide incentives to employees
Quality improvement programs
Provide more competitive products
Applying new technology
Employees development programs
 
• Key success factor
Target foreign market
Employee
  Price policy
  Sales promotion
  The location selection
  Analyze local market and competitors
  Diversity of selling assortment

• Key performance indicators

Procurements cost of company and number of suppliers
Transportation
Distribution centers of company
Environment awareness
Globalization in business
Quality of clothes
• The current human resource of company
Part time 52.7%,Full time employees 47.3%
Permanent contracts 82.1%Temporary contracts 17.9%
• Employees per region (%)
Europe (except Sweden): 76%,North America: 12%, Sweden: 9%,Production Offices: 2%,
Asia:1%
Total number of 76000 employees
• The channels of communication with suppliers
22 Production offices
Tenders
Internet and phonic
• The channels of communications with customers
Web site
News group
Communities
Bulletin boards
Questions?

THANKS