Supply Chain Management in the Luxury Industry
This chapter will introduce the concept of supply chain and supply chain management, discuss the typical supply chain configuration of luxury companies and describe the planning and execution processes in supply chain management.
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his chapter will introduce the concept of supply chain and supply chain management, discuss the typical supply chain configuration of luxury companies and describe the planning and execution processes in supply chain management. This chapter is organized as follows: • The general definitions of supply chain and supply chain management, along with other relevant terms are presented in section “Definitions”. • A synthetic view of the current trends and challenges of the supply chain management, with special focus on the luxury supply chains is given in section “Trends and Challenges in Supply Chain Management”. • The typical structure of both the Inbound and the outbound supply chain are described in section “Typical Structure of the Inbound and Outbound Supply Chain”. A. Brun (*) Department of Management, Economics and Industrial engineering Politecnico di Milano, Milan, Italy e-mail: [email protected] © The Author(s) 2017 E. Rigaud-Lacresse, F.M. Pini (eds.), New Luxury Management, Palgrave Advances in Luxury, DOI 10.1007/978-3-319-41727-1_11
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• Section “Typical Supply Chain Planning and Execution Processes” is dedicated to a synthetic description of all the “core” processes of the APICS1 reference model (inputs, outputs, goals). • Finally, to let the reader better understand the typical supply chain configuration of fashion-luxury companies, section “Noteworthy Examples of Supply Chain Configurations” discusses examples of noteworthy configurations taken from shoe, leather bag and underwear sectors.
Definitions A supply chain (SC) can be described as the set of activities that allow the transformation of raw materials into finished products, passing across suppliers, manufacturers, distributors and companies with other roles (Lummus and Vokurka 1999). Cox et al. (1995) identify the supply chain as the functions, within and outside a company, that enable the value chain to manufacture products and provide services to the customer. The Supply Chain Council (1997) stated that “The SC encompasses every effort involved in producing and delivering a final product from the supplier’s supplier to the customer’s customer”. Childerhouse et al. (2002) speak of “Demand Chain” in order to highlight a customer orientation: “the whole manufacturing and distribution process may be viewed as a sequence of events with one purpose: to serve the ultimate customer”. These are just some of the definitions that were provided for one of the most explored management concepts of the recent years: d ealing with supply chains is now a necessity, dictated by the evolution of the economic scenario. A typical supply chain consists of five main components: • Suppliers. Source of raw materials, component parts, semi-manufactured products and other items that occur early in the supply chain—unfinished or non-consumable products. 1 APICS is the leading professional association for supply chain and operations management and provides research, education and certification programmes aiming at supporting supply chain ex
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