Uniqlo is a fast-fashion and clothing and casual wear manufacturing Japanese multinational company. The clothing brand started its business in 1984; the company has established a network of approximately 2434 retail chain clothing stores. Today, we’ll discuss the supply chain analysis of Uniqlo; it focuses on various SCM elements like procurement planning, inventory management, warehousing, automation, transportation, and distribution.
Supply Chain Analysis of Uniqlo
Let’s discuss the main elements of the supply chain analysis of Uniqlo are as follows;
Responsible Sourcing
Uniqlo has made a strong commitment to the responsible sourcing of cotton, raw materials, tools, parts, and components down to the farmers and their practices impacting wildlife, nature, and the environment. The fast-fashion and clothing band collaborates with responsible partners to ensure the company’s strong commitment to ethical sourcing. In fact, the company has the RDS (responsible down standards) certification.
The objective of RDS sourcing is to ensure the welfare and protection of ducks and geese; it also helps the company to safeguard and breed all the animals. It comprises of following elements;
- Prohibiting the removal and plucking of feathers from live birds
- Force-feeding not allowed
- Respecting the welfare of animals and birds
- Auditing the sourcing practices of suppliers
Recycled Material
Uniqlo is investing a significant amount of capital resources in the recycling technology. In fact, the company is developing a lot of new apparel and clothes from recycled material. The retail chain clothing brand has a target of using 50% of all recycled material for the production and manufacturing of clothes.
Suppliers Network
Uniqlo has a very large network of suppliers and vendors in various countries across the world. The large and diverse suppliers network would help the company to ensure the smooth availability of raw supplies, materials, and parts. The clothing brand has developed a very good and effective relationship with the suppliers and vendors to ensure the quality material and avoid any type of delays and disruptions.
Transparent Supply Chain
Uniqlo has made a strong commitment to make its supply chain transparent and visible. Transparency and traceability would help the company to earn the trust and confidence of customers. It allows customers to gather information about the sourcing material, production factories, and the working conditions of workers in the supply chain network. It helps the company to have a positive impact on society and the environment.
Production and Manufacturing Factories
Uniqlo has established a network of approximately 150 production and manufacturing factories in various countries across the globe. It is significant to mention here that the clothing brand outsources almost all of its production and manufacturing processes and operations. The company’s partnered production and manufacturing factories receive the raw materials and supplies from the company’s authorized suppliers, perform various production operations, and produce the finished clothes for customers.
Improving Working Environment
Uniqlo has set up a strict code of conduct for suppliers, vendors, and manufacturing partners to ensure their compliance with human rights standards and environmental regulations. The company regularly evaluates the production processes, working conduction, and product quality standards of its production and manufacturing factories in Bangalore, Jakarta, Dhaka, Ho Chi, and Shanghai.
However, it allows the company to improve its production and manufacturing process, gain a key insight into the production operation, and promote responsible sourcing and procurement. The fast fashion brand is fully transparent about its production factories in various countries.
Women Empowerment Program
Uniqlo has launched a women empowerment program in Bangladesh by providing women training and offering the career opportunities. For instance, the company is providing training to approximately 1500 women in its training programs and it allowed the company to increase the proportion of women in factories by 30%. Approximately 51% of women who participated in the company’s training program, receive promotion to the management level. The training programs encourage women to go out and actively participate in their career development.
Warehouses and Distribution Centers
Uniqlo has a very large network of warehouses and distribution centers in various countries across the globe. They receive finished products and goods from the company’s production and manufacturing factories, temporarily store, package, and label the clothes and apparel, and then send them to the retail chain stores.
Logistics and Transportation
Uniqlo employs various transportation and 3rdparty logistics service providers for the distribution of its products and goods. The large and worldwide distribution network plays a key role in delivering raw materials and suppliers from the farmers and suppliers to the production and manufacturing factories; warehouses, and then to the retail stores and the end consumers.
Conclusion: Uniqlo Supply Chain Analysis | Uniqlo Supply Chain Management
After an in-depth study of the supply chain analysis of Uniqlo; we have realized that Uniqlo is the world’s leading clothes manufacturing brand. If you are learning about the Uniqlo supply chain analysis; then you should keep in mind the abovementioned SCM elements; procurement, planning, transportation, automation, inventory management, and sortation.
Ahsan is an accomplished researcher and has a deep insight in worldly life affairs. He goes Live 3 days a week on various social media platforms. Other than research writing, he’s a very interesting person.
