First of all Benetton purchase the principal raw materials (wool, raw cotton, yarn, cloth and denim fabrics) from its supply chain. Even if the Company doesn't seek formal, long-term contracts with its suppliers, it has not experienced interruptions in supply that have had material impact on its activity.
From 2005 the textile segment has been made up of 2 companies, transforming raw materials into fabrics, from spinning to finishing and ennobling. Handicraft product quality and technological research development characterize this business segment which works with internationally recognized names of the apparel and fashion industry.
Benetton does manufacture much of its production itself, producing in its own factory, but on its supply side the Company also relies heavily on contractors'. Contractors are owned or part-owned companies that provide services to the Benetton factories by knitting and assembling Benetton's garments. These contractors, in turn, use the services of sub-contractors to perform some of the manufacturing tasks. At the moment Benetton has 22 factories operating, 15 of which are located in Italy and one each in Spain, Croatia, India, Portugal, Tunisia, Slovakia and Hungary. The Company utilizes almost 900 subcontractors in Italy to perform one or more steps in the production process.
The Company's manufacturing processes utilize modern technology and automatization to reduce costs and accelerate its execution. In addition the "contractor system" allows Benetton to keep its production costs significantly below some of its competitors because the small supply companies have lower costs themselves. Secondly, Benetton is able to allay the effects of the demand fluctuations: in fact the Company can adjust its supply chain, absorbing so all the changes without feeling the full effect.
Before the production processes, Benetton performs an exceptional product design through a staff of 300 designers from all over the world, that creates the collections for the casual brands United Colors of Benetton, Undercolors, Sisley and for Playlife leisure wear and Killer Loop streetwear brands. Benetton aims to offer products characterized by their creative use of exclusive designs.
The Group produces two main collections (spring/summer and fall/winter) each year for all its labels. The design team is also engaged in researching new materials and creating new lines for different targets (children, men, women, expectant mothers), offering them not only practical and modern styles but also maximum comfort. The result is the latest trends in design and a rich output of many models a year which are realised with computer assisted design systems fully integrated with the rest of the company's production phases.
On the demand side of the chain, Benetton operates through a number of agents, each of whom is responsible for their own geographical area. Indeed, many of the agents actually own some stores in their area. Products are shipped from Italy to the individual stores where they are often put directly onto the shelves.
Benetton has a retail network of 5,000 contemporary stores around the world. The Benetton stores carry complete collections, as well as a wide selection of accessories, offering a full range of Benetton style and quality.
Benetton also has a direct control of the logistics phase investing heavily in automating logistics processes in order to achieve total integration within the production cycle, from customer orders to packing and delivery.
The company has a particular way to have relationship between customers and suppliers. Part of the reason for its success has been the way it has organized both the supply side and the demand side of its supply chain.
The Benetton Group designs, manufactures and markets distinctive apparel for men, women and children with a global image and analysis the offer of his business and send this information for all its factories. This action allow more flexibility for Benetton with the complex system of technologies from its suppliers and a better purchasing for its customers, because they could find a more range of options about the models, kind and colours of clothes they prefer.
Let's turn to technology decisions of the Benetton. We will view three major tasks that are faced by company concerning technology, which are to acquire the technologies that the company needs for its operations and its offerings, to fully exploit these expensively acquired technologies in the company's own offerings or by other means and to manage these two processes effectively in a complex organization.
Firstly we'll take up acquire technology of Benetton. On our opinion Benetton keeps a making technology' approach. Indeed, Benetton makes' its own technology by developing it in its own research, namely working up design of its garments, basic methods of manufacturing, some special technologies, such as dyeing in grey', selling principles and so on.
There is a more detailed explanation with some examples. As we've mentioned before, Benetton has a big staff of designers not only for creating the collections but also for researching new materials. So, all the researching work is been doing by Benetton itself. Other interesting example is Benetton' working out of dyeing in grey' their famous policy of manufacturing garments, where possible, in greggio, or in grey, and then dyeing them only when demand for particular colours is evident. This is a slightly more expensive process than knitting directly from colored yarn, but their supply-side economies allow them to absorb the cost of this extra flexibility, which in turn allows them to achieve relatively fast deliveries to the stores.
As about exploit technology, Benetton doesn't hold to only external or only internal exploitation. As we've mentioned above, its designers research new materials, but all the materials are delivered from suppliers, so Benetton offer a turnkey' package for its suppliers. Also about delivering though Benetton operates through a number of agents, all they have the same selling principles, worked out by the core company. But also we can speak about internal exploitation in the manufacturing step, because Benetton does manufacture much of its production itself using its own developed production technologies.
Speaking about manage technology, in every level from material manufacture to selling step all the participants of Benetton production hold to common principles of working. For example, Benetton's designers suggest a new materials for suppliers, Benetton's specialists control not only the step of assembling garments, which is mostly take place at its own factories but also at its suppliers factories. At the same time it's very important control its delivery system. Benetton stores have always been designed with relatively limited storage space, and so store owners require that deliveries of garments are fast and dependable. Benetton found decision through their famous policy dyeing in grey'.
First of all Benetton purchase the principal raw materials (wool, raw cotton, yarn, cloth and denim fabrics) from its supply chain. Even if the Company doesn't seek formal, long-term contracts with its suppliers, it has not experienced interruptions in supply that have had material impact on its activity. From 2005 the textile segment has been made up of 2 companies, transforming raw materials into fabrics, from spinning to finishing and ennobling. Handicraft product quality and technological research development characterize this business segment which works with internationally recognized names of the apparel and fashion industry. Benetton does manufacture much of its production itself, producing in its own factory, but on its supply side the Company also relies heavily on contractors'. Contractors are owned or part-owned companies that provide services to the Benetton factories by knitting and assembling Benetton's garments. These contractors, in turn, use the services of sub-contractors to perform some of the manufacturing tasks. At the moment Benetton has 22 factories operating, 15 of which are located in Italy and one each in Spain, Croatia, India, Portugal, Tunisia, Slovakia and Hungary. The Company utilizes almost 900 subcontractors in Italy to perform one or more steps in the production process. The Company's manufacturing processes utilize modern technology and automatization to reduce costs and accelerate its execution. In addition the "contractor system" allows Benetton to keep its production costs significantly below some of its competitors because the small supply companies have lower costs themselves. Secondly, Benetton is able to allay the effects of the demand fluctuations: in fact the Company can adjust its supply chain, absorbing so all the changes without feeling the full effect. Before the production processes, Benetton performs an exceptional product design through a staff of 300 designers from all over the world, that creates the collections for the casual brands United Colors of Benetton, Undercolors, Sisley and for Playlife leisure wear and Killer Loop streetwear brands. Benetton aims to offer products characterized by their creative use of exclusive designs. The Group produces two main collections (spring/summer and fall/winter) each year for all its labels. The design team is also engaged in researching new materials and creating new lines for different targets (children, men, women, expectant mothers), offering them not only practical and modern styles but also maximum comfort. The result is the latest trends in design and a rich output of many models a year which are realised with computer assisted design systems fully integrated with the rest of the company's production phases. On the demand side of the chain, Benetton operates through a number of agents, each of whom is responsible for their own geographical area. Indeed, many of the agents actually own some stores in their area. Products are shipped from Italy to the individual stores where they are often put directly onto the shelves. Benetton has a retail network of 5,000 contemporary stores around the world. The Benetton stores carry complete collections, as well as a wide selection of accessories, offering a full range of Benetton style and quality. Benetton also has a direct control of the logistics phase investing heavily in automating logistics processes in order to achieve total integration within the production cycle, from customer orders to packing and delivery. The company has a particular way to have relationship between customers and suppliers. Part of the reason for its success has been the way it has organized both the supply side and the demand side of its supply chain. The Benetton Group designs, manufactures and markets distinctive apparel for men, women and children with a global image and analysis the offer of his business and send this information for all its factories. This action allow more flexibility for Benetton with the complex system of technologies from its suppliers and a better purchasing for its customers, because they could find a more range of options about the models, kind and colours of clothes they prefer. Let's turn to technology decisions of the Benetton. We will view three major tasks that are faced by company concerning technology, which are to acquire the technologies that the company needs for its operations and its offerings, to fully exploit these expensively acquired technologies in the company's own offerings or by other means and to manage these two processes effectively in a complex organization. Firstly we'll take up acquire technology of Benetton. On our opinion Benetton keeps a making technology' approach. Indeed, Benetton makes' its own technology by developing it in its own research, namely working up design of its garments, basic methods of manufacturing, some special technologies, such as dyeing in grey', selling principles and so on. There is a more detailed explanation with some examples. As we've mentioned before, Benetton has a big staff of designers not only for creating the collections but also for researching new materials. So, all the researching work is been doing by Benetton itself. Other interesting example is Benetton' working out of dyeing in grey' their famous policy of manufacturing garments, where possible, in greggio, or in grey, and then dyeing them only when demand for particular colours is evident. This is a slightly more expensive process than knitting directly from colored yarn, but their supply-side economies allow them to absorb the cost of this extra flexibility, which in turn allows them to achieve relatively fast deliveries to the stores. As about exploit technology, Benetton doesn't hold to only external or only internal exploitation. As we've mentioned above, its designers research new materials, but all the materials are delivered from suppliers, so Benetton offer a turnkey' package for its suppliers. Also about delivering though Benetton operates through a number of agents, all they have the same selling principles, worked out by the core company. But also we can speak about internal exploitation in the manufacturing step, because Benetton does manufacture much of its production itself using its own developed production technologies. Speaking about manage technology, in every level from material manufacture to selling step all the participants of Benetton production hold to common principles of working. For example, Benetton's designers suggest a new materials for suppliers, Benetton's specialists control not only the step of assembling garments, which is mostly take place at its own factories but also at its suppliers factories. At the same time it's very important control its delivery system. Benetton stores have always been designed with relatively limited storage space, and so store owners require that deliveries of garments are fast and dependable. Benetton found decision through their famous policy dyeing in grey'.
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First of all Benetton purchase the principal raw materials (wool, raw cotton, yarn, cloth and denim fabrics) from its supply chain. Even if the Company does not Seek formal, long-term contracts with its Suppliers, it has not experienced interruptions in Supply that have had Material Impact on its Activity.
From 2 005 the textile segment has been Made up of 2 companies, transforming RAW Materials. into fabrics, from spinning to finishing and ennobling. Handicraft product quality and Technological Research Development characterize this business segment which Works with internationally recognized names of the APPAREL and Fashion Industry.
Benetton does manufacture much of its Production Itself, producing in its own Factory, but on its Supply Side the Company also Relies heavily on. ?? contractors'. Contractors are owned or part-owned companies that provide services to the Benetton factories by knitting and assembling Benetton's garments. These contractors, in turn, use the services of sub-contractors to perform some of the manufacturing tasks. At the moment Benetton has 22 factories operating, 15 of which are located in Italy and one each in Spain, Croatia, India, Portugal, Tunisia, Slovakia and Hungary. The Company utilizes Almost 900 subcontractors in Italy to Perform one or more steps in the Production Process.
The Company's processes utilize Modern Manufacturing Technology and its automatization to Reduce costs and Accelerate Execution. In addition the "contractor system" allows Benetton to keep its production costs significantly below some of its competitors because the small supply companies have lower costs themselves. Secondly, Benetton is Able to allay the effects of the demand fluctuations: in Fact the Company Can Adjust its Supply chain, absorbing so all the changes Without Feeling the full Effect.
Before the Production processes, Benetton performs an exceptional product Design Through a staff of. 300 designers from all over the world, that creates the collections for the casual brands United Colors of Benetton, Undercolors, Sisley and for Playlife leisure wear and Killer Loop streetwear brands. Benetton aims to Offer Products characterized by their use of Creative Exclusive Designs.
The Group produces Two Main Collections (Spring / Summer and Fall / Winter) each year for all its labels. The design team is also engaged in researching new materials and creating new lines for different targets (children, men, women, expectant mothers), offering them not only practical and modern styles but also maximum comfort. The Result is the latest Trends in Design and a rich output of many models a year which are realized with Computer Assisted Design Systems fully Integrated with the Rest of the Company's Production phases.
On the demand Side of the chain, Benetton operates Through a Number of. agents, each of whom is responsible for their own geographical area. Indeed, many of the agents actually own some stores in their area. Products are shipped from Italy to the individual where they are often Stores Put directly onto the Shelves.
Benetton has a Network of 5,000 RETAIL Stores Around the World Contemporary. The Benetton Stores Carry Complete Collections, as well as a Wide selection of accessories, offering a full Range of Benetton style and quality.
Benetton also has a Direct Control of the logistics Phase Investing heavily in automating logistics processes in Order to Achieve total integration Within the. Production Cycle, from customer orders to Packing and Delivery.
The Company has to have a particular Way Relationship between customers and Suppliers. Part of the Reason for its Success has been the Way it has Organized both the Supply Side and the demand Side of its Supply chain.
The Benetton Group Designs, manufactures and markets distinctive APPAREL for Men, Women and children with a Global Image and Analysis the. offer of his business and send this information for all its factories. This Action Allow more flexibility for Benetton with the Complex System of Technologies from its Suppliers and a better purchasing for its customers, because they could Find a more Range of options About the models, Kind and Colours of Clothes they prefer.
Let's turn to Technology decisions. of the Benetton. We will view three major tasks that are faced by company concerning technology, which are to acquire the technologies that the company needs for its operations and its offerings, to fully exploit these expensively acquired technologies in the company's own offerings or by other means and to manage. Two these processes effectively in a Complex Organization.
Firstly we'll take up Acquire Technology of Benetton. On our opinion Benetton keeps a ?? making technology 'approach. Indeed, Benetton ?? makes 'its own technology by developing it in its own research, namely working up design of its garments, basic methods of manufacturing, some special technologies, such as ?? dyeing in grey', selling principles and so on.
There is a more detailed explanation with some examples. As we've mentioned before, Benetton has a big staff of designers not only for creating the collections but also for researching new materials. So, all the researching work is been doing by Benetton itself. Other interesting example is Benetton 'working out of ?? dyeing in grey' ?? their famous policy of manufacturing garments, where possible, in greggio, or in grey, and then dyeing them only when demand for particular colours is evident. This is a Slightly more expensive Process than Knitting directly from colored Yarn, but their Supply-Side economies Allow them to absorb the cost of this extra flexibility, which in turn Allows them to Achieve relatively fast Deliveries to the Stores.
As About exploit Technology,. Benetton does not hold to only external or only internal exploitation. As we've mentioned above, its designers research new materials, but all the materials are delivered from suppliers, so Benetton offer a ?? turnkey 'package for its suppliers. Also about delivering ?? though Benetton operates through a number of agents, all they have the same selling principles, worked out by the core company. But also we Can Speak About internal Exploitation in the Manufacturing Step, because Benetton does manufacture much of its Production Itself using its own developed Production Technologies.
Speaking About Manage Technology, in every level from Material manufacture to selling Step all the participants of Benetton Production Hold. to common principles of working. For example, Benetton's designers suggest a new materials for suppliers, Benetton's specialists control not only the step of assembling garments, which is mostly take place at its own factories but also at its suppliers factories. At the same time it's very important control its delivery system. Benetton stores have always been designed with relatively limited storage space, and so store owners require that deliveries of garments are fast and dependable. Benetton found decision through their famous policy ?? dyeing in grey '.
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First of all Benetton purchase the principal raw materials (,,, wool raw cotton yarn cloth and denim fabrics) from its supply. Chain. Even if the Company doesn 't, seek formal long-term contracts with its suppliers it has, not experienced interruptions. In supply that have had material impact on its activity.
From 2005 the textile segment has been made up of, 2 companiesTransforming raw materials into fabrics from spinning, to finishing and ennobling. Handicraft product quality and technological. Research development characterize this business segment which works with internationally recognized names of the apparel. And fashion industry.
Benetton does manufacture much of its production itself producing in, its, own factoryBut on its supply side the Company also relies heavily on 'contractors'. Contractors are owned or part-owned companies. That provide services to the Benetton factories by knitting and assembling Benetton 's garments. These contractors in turn,,, Use the services of sub-contractors to perform some of the manufacturing tasks. At the moment Benetton has 22 factories. Operating.15 of which are located in Italy and one each in Spain Croatia India,,,,, Portugal Tunisia Slovakia and Hungary. The Company. Utilizes almost 900 subcontractors in Italy to perform one or more steps in the production process.
The Company s manufacturing. ' Processes utilize modern technology and automatization to reduce costs and accelerate its execution.In addition the "contractor system" allows Benetton to keep its production costs significantly below some of its competitors. Because the small supply companies have lower costs themselves. Secondly Benetton is, able to allay the effects of the demand. Fluctuations: in fact the Company can adjust its, supply chain absorbing so all the changes without feeling the full effect.
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