H&M SUPPLY CHAIN MANAGEMNET

The supply chain of H&M is divided into 3 stages

1. Design and production.

2. Manufacturing.
3. Logistics / distribution.

Now we will discuss these stages one by one in order to get a better understanding.

DESIGN AND PRODUCTION

H&M is famous for offering chic, trendy styles with rapid turnarounds - an epitome of the
widely acknowledged and appropriately named phenomenon that is 'fast fashion'. However, Van
den Bosch, H&M's fashion oracle and head designer for the last 20 years, believes that the
frivolous term does not do justice to the complex design process that is heralded by her team of
100 designers who meticulously curate and coordinate each collection more than a year in
advance!

This mammoth feat of designing and producing collections season after season is achieved via
H&M's two-fold design process. It involves not only long-term planning of collections, but also
a real-time design response that stems from a customer-driven production strategy.

"The design team is very important to us and all our designers are very well-educated," says
Bosch. What comprises of this fashionable A-team you ask? Well, its designers come from all
over the globe; From Holland, South Africa to Japan. The entire team works from H&M's design
center in Stockholm, popularly known as the "white room". It does not stop there however. The
team works closely with a mind-boggling number of services to produce its range of apparel - 60
pattern makers, 700 suppliers and 20 worldwide production centers to be exact.

Indeed, the production rate of H&M's retail inventory is elevated by its heavy dependence on
outsourcing from design to production. Although H&M’s core operation relies on its designers,
creative directors, and pattern makers to stay on top of the latest trends, it also uses the services
of fashion trend forecast companies such as Worth Global Styles Network (WGSN). As a fast-
moving retailer, it takes on an innovative direction in determining consumer interests through
both traditional analysis and experimental augmented-reality technologies.