Clothing Company is operating its business in the fashion industry and it focuses on the production and selling of clothes and apparel. It comprises clothes designing, production and manufacturing, marketing and distribution, and targeting the specific segments of the customer market. Today, we’ll discuss the value chain analysis of Clothing Company supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.
Supplies and Materials for the Clothing Industry
- Cotton
- Water
- Colors
- Silk farmers
- Linen
- Hardware equipment
- Machinery
- Professional expertise
Top brands in the Clothing Industry
- Inditex
- Dior
- Nike
- LVMH
- Adidas
- H&M
- Zara
The Value chain analysis of Clothing Company supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of Clothing Company value chain analysis company example as follows;
Value Chain Analysis of Clothing Company
Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Clothing Company supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;
Primary Activities of Clothing Company
The primary activities are directly involved in the production of products and goods and adding value to the clothing company. Some of the five main primary activities in the value chain analysis of Clothing Company supply chain analysis are as follows;
Inbound Logistics of Clothing Company
I-Large Suppliers Network
There are approximately 298,036 apparel and clothing manufacturers in the global market. They deal with a wide range of suppliers and vendors in various categories; cotton-growing farmers, linens, silk growers, hardware and equipment, tech machinery, workforce, and professional expertise. The large suppliers and vendors network in the apparel and textile industry helps the company to smoothly perform its various clothing operations.
II-Suppliers Relationship
Many apparel brands have established a very good and effective relationship with their suppliers and manufacturing partners. In fact, many apparel manufacturers and suppliers prefer to collaborate with the world’s leading clothing brand. It allows them to ensure the smooth order supply of clothing material, equipment, and other supplies and they don’t have to find new clients. It is mutually beneficial for both parties; suppliers and the clothing brand.
Outbound Logistics of Clothing Company
Many clothing brands collaborate and partner up with various transportation and 3rd party logistics service-providing companies. They move raw supplies and materials from the suppliers to the apparel production and manufacturing factories, warehouses, and distribution centers, and then to the retail chain stores and the end consumers.
Operations of Clothing Company
I-Production & Manufacturing
Some clothing brands like Zara have set up their production and manufacturing factories; others outsource their production and manufacturing works. The manufacturing factories receive raw supplies and materials from the company’s authorized suppliers and vendors; and produce clothes relevant to the company’s design and style requirements of the company in full confidence without disclosing the designs to the public.
II-Warehouses & Distribution Centers
Many clothing brands have their own warehouses and distribution centers; some outsource their inventory to third-party warehousing facilities. They receive finished clothes from the production and manufacturing facilities; package and label them, temporarily store them, and then move them to the required destination of retail stores and the end consumers.
Marketing & Sales of Clothing Company
I-Marketing & Advertises
In order to attract the attention of customers, clothing companies run various types of marketing and advertisement campaigns for the promotion of their products and goods. They employ various media channels, platforms, and strategic campaigns to approach the mass-targeted audience and increase their sale.
II-Retail Stores
Some brands have a network of chain stores in various countries across the world. The network of clothing brick-and-mortar stores allows customers to physically check out the quality, design, style, and fabric of the clothes before buying them.
Services of Clothing Company
Clothing brands offer a wide range of products and services to customers. The additional apparel service portfolio helps clothing companies promote brand loyalty and earn the trust and confidence of customers.
- Apparel designs and styles
- Online shopping
- Home delivery service
- Excellent in-store experience
Supporting Activities of Clothing Company
Supporting activities are indirectly involved in the production of products and goods and adding value to the clothing company. Some of the main supporting activities in the value chain analysis of Clothing Company supply chain analysis are as follows;
Infrastructure of Clothing Company
Clothing companies have established a very large infrastructure of production and manufacturing facilities, retail chain stores, supplier networks, and distribution channels. The large infrastructure of clothing and textile brands helps them to smoothly perform their apparel production and retail operations without any disruptions and delays.
HRM of Clothing Company
Clothing Industry has employed millions of people in various categories performing different roles. The human resource management department of the clothing brands plays a key role in conducting training programs, recruiting the right talent for the job, crafting contracts, building relationships with employees and workers, and offering equal employment opportunities to all regardless of any differences.
Technological Development of Clothing Company
The clothing industry invests a significant amount of capital resources in research and technological development. It allows them to employ automation processes, robotic technology, the development of efficient materials, and advanced methods of products to reduce cost and achieve operational efficiency.
Procurement of Clothing Company
The clothing Industry is highly careful and cautious about ethical sourcing and procurement of raw materials and finished goods from suppliers and manufacturing partners. They prefer to collaborate and partner up with suppliers and vendors that would meet their requirements.
Conclusion: Clothing Company Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis
After an in-depth study of the value chain analysis of Clothing Company; we have realized that Clothing Industry is the world’s fastest growing business. If you are learning about the Clothing Company value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.
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