Benetton Case Study

1130 Words5 Pages
 Introduce Benetton Brand history and identify the brand promise: Benetton was born in 1965 in Ponzano Veneto, Italy, from the artisan knitting workshop of the Benetton siblings. In the beginning, Benetton was only a small company that produced sweaters for local independent retailers. In 1966, Benetton opened its first “Benetton’s shop” in Belluno and just few years later, their stores covered all Italian’s province. Benetton was engaged in the manufacturing and distribution of clothing, undergarments, cosmetics, shoes and accessories. They also licensed its brand name to various manufacturers of stationery, sunglasses, watches, golf equipment, cosmetics, toys, linens, designer condoms, steering wheels and luggage. The group’s includes United…show more content…
With SAP AFS, Benetton runs a single, integrated platform, it had the ability to adjust the products operations quickly according to customer's requirements. This brought a long-term cost and profits for the whole enterprise. SAP AFS is designed to meet the specific requirements of clothing and footwear industry. It includes financial, order fulfillment and logistics etc. and it provides a global data access ability to improve the ability of forecast and plan.  The postponement strategy of Benetton Postponement strategy is a special strategy created by Benetton in 1964 in order to better meet customer latest tastes. Postponement strategy basically reversed the traditional dye-first-knit-after mode into knit-first-dye-after. The garments are knitted in natural color firstly and then stored in warehouse until information about latest color trends are provided from the retailers. Benetton extended the concept of “JIT” production from supplier -> assembler -> the manufacturer -> retailer stage. In the case of increased product types, specifications and knitting time reduction related to the technological improvements, this postponement strategy has absolutely benefits compared to the traditional…show more content…
1. Sequential Supply Chain - a better calibrated and more efficient system, based on a logical sequence of activities for minimizing costs and optimizing efficiency. 2. Integrated Planning System - a more rapid system with better response capabilities, optimizing, in parallel, the activities of R&D, product design, production and sales. At the beginning of season, Benetton uses a sequential dual supply chain based on push-demand for standard garments delivered. During the season, an integrated pull-demand focused supply chain are used for flash collections. Therefore they can respond to customer latest feedbacks. This system reduced costs and lead time through a more efficient logical flow of activities and an integrated planning system. The most strategic activities, like design and planning are maintained in Italy, while looks outside for production/logistic efficiency and cost

More about Benetton Case Study

Open Document