Case study of supply chain administration at luen thai

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1. Create a framework to understand the collaborative source chain issues between your three partners.

Comparing with traditional source chain program, in collaborative source chain, parties go along with on universally distinctive goals, and work with their exclusive but corresponding abilities so as to achieve long term competitive advantage. The normal objectives are defined in regards to to specific tasks and realized it.

raw material sourcing, item design, production, logistics by a third party, logistics supplier and retail, all these operations take place through the collaborative supply chain.

The foremost limitation in the supply chain process is impact that all operations occurred in a sequential fashion instead of a synchronic one. For instance, the product design and style was implemented by the look team of Polo, but the prompt and speedy convey of facts to other partners, specially when last second changes in design needed to be featured , practically was under no circumstances attained .

Decision making process was based on old information because of inter not Intra Provider keeping information.

Value creation could possibly be attained by the better inventory control, operation and logistic. Effective source chain allows to be achieved All these factors. In EDI conditions, procedure was fragmented, sectioned and portioned, which was caused by not complex communication tools, such as email and fax. In a whole communication in the company was not systematic and ordered.

Once additional to emphasize this matter, prompt details delivery was the most important weak spot in the full total system. This issue caused increase of inventory cost, replenishment period, reoccurrence of bullwhip effect, which causes coordination loss in source chain, due to misinterpretation of demand details. All the above mentioned points and issues might lead to share out which ends with client and income losses.

Silo Approach_ reduction functions tracing logistic. Difference and inequality of databases between vendors and retailers. Excel paperwork were filled manually therefore, human mistake could cause radical results.

Well calculated order replacing and anticipation cannot been attained due to obstacles concerning collaboration and facts distribution so far as the parties were on duty only on their machines.

2. Highlight source chain conceptual underpinnings and differentiate between classic supply chain management and offer chain collaboration in the context of Luen Thai & Polo.

As we observe from the case, formerly, there can be sequential interdependence between the partner’s actions in the chain. As a result only when one stage accomplished the other just then started. Afterward there is usually shared interdependence data of exchange which brings about the delay of the process which is the threats of the post quota regime. So, it really is essential to shift on the present day and more sophisticated style of supply chain.

Therefore, traditionally each the main apparel chain operated more or less independently, without attempt along solves common challenges. Each member distrusted partner members and believed in mere individual skills. Although the collaboration thought was good, significant dedications were by no means made towards attaining it, neither terms of information sharing nor serious monetary commitments. Even so, the triad was mutually assisting, they performed as detached celebrations.

Real time information flow between the functions will get ensured by the new adopted supply chain. The modification A�Initial Equipment Producer" (OEM) into "Design-to-store" (D2S) unit would initiate retailer’s more and deep involvement in the process which ensures far better collaboration than it had been during the time of the custom al practice.

3. Examine how technology will enable collaboration among Luen Thai and its partners and the effect of such collaboration?

D2S, The new style used by the Polo, permitted better cooperation in:


Logistics by assisting the business and its companions compose better resolutions, put into practice more efficient procedures.


.Efficient and effective transfer of information between companies and designers ensured improvement of product design. A web base plat form of real time information and standardized conversation facilitated partners considerable collaboration.


The brand-new technology let partners to communicate facts referring product styles and immediate changes during the production process. By integrating the brand new expertise between your company and other functions, it will tolerate facts web-based exchange to end up being carried out in a manner that eliminate past communication disadvantages with phones and faxes.

Polo applies technology to build up information where they are able to observe, check and react to client’s demand. Like this the company is competent to deal and cope with the wants and desires of its potential buyers by saving the information in one precise space online. The new technology guarantee obvious and comprehensible information, which may be also transferred in one part of the company to another.

4. Examine how Polo’s relationship with Luen Thai possesses evolved and examine the effect of collaboration on Polo’s business model?

Every fashionable apparel business must be extremely competitive available in the market as a way to attain customers and industry share. It is vital to have capacity to meet customer’s needs promptly and be on the right time on the right place. The main role in this example is operations effectiveness and efficiency. Procedure, on its part requires powerful and collaborative source chain operations, which avoids miscommunication and information delay. Crucial aspect in source chain as we see from the circumstance is that all the partners need to work and run in the synchronized fashion. The collaboration helps firm to stand out from the competitors. Luen Thai has the essential function in every these previously listed issues. In addition, it manages in minimizing stocks and shares.

The three partners had built a strong foundation to a enduring and committed relationship but the relationship was not institutionalized till Luen Thai dedicated itself to a larger role in the entire apparel source chain. This greater position leads to better collaboration among all channel companions and increased integration in the source chain. . Regarding Polo, it was the market pressure that contributes to the change and part in the supply chain while in the circumstance of Luen Thai it had been a reassessment of the company’s role in the value chain that produced them get involved in design production, logistics and higher collaboration with upstream and downstream partners.

Luen Thai as a result had to co-ordinate with Ruentex and ensures that the right fabric supply and also with Polo for his or her design requirements so as to manufacture the proper garment cost discover how to write a personal narrative essay properly and speedily.

Henry Tan, CEO of Luen Thai being truly a visionary had evaluated different supply chain versions before incorporating the present one. The major products which were evaluated included models used by Liz Claiborne, Howick, PTC and VF. All these apparel manufacturers to some extent had incorporated various Supply Chain Technologies to ensure that every participant of the supply chain was updated with the patterns and other requirements.

Effective connection between Polo and its partners will be performed by this sophisticated method of supply chain, such as for example collaboration. It causes anticipation of product styles and prompt transformation during the production way. It wills also get rid of drawbacks which occurred generally during the earlier techniques, while they used faxes and mobile phones. This supply chain system has another advantage as well, which can be gathering and collecting details in a single place, this organized info helps company and its own partners to answer drastically customer’s need and demands.

5. How does Source Chain Metropolis initiative complement the D2S initiative? What are the synergies?

Supply Chain City, implemented by Luen Thai was an alternative solution model because of their business. At first, Luen Thai received a range of products essential for manufacturing the products from distributors and suppliers to increase worldwide. This required stringent control of supply chain to make certain that the needed quantity of merchandise reach the Luen Thai supplier. Above and beyond, this also raised the expense of transportation to the makers. The most critical stage was the delay in receipt of drawings and tips from the creator to the manufacturer. Keeping this as the important object, Luen Thai designed the thought of a supply Chain Metropolis that could run various apparel supply operations such as design & expansion, logistics & distribution, supplies, embroidery testing, production, printing, washing and sample making in a single location.

Contribution to Collaboration

This approach allowed Luen Thai to progress relationships between your upstream and downstream companions.

This as well allowed the manufacturing unit to access the design Centre of Luen Thai and offer technical support such as washing and sample making, embroidery, printing

This enabled Luen Thai to adopt design process for Polo in addition to assembled small batches of supply.

It allowed faultless exchange of facts and knowledge between LuenThai and Ruentex the fabric manufacturer.

The supply chain metropolis initiative complements D2S by facilitated go different apparel supply procedures such as, logistics and distribution, design and style and development, supplies tests, printing, washing, embroidery, development, and sample making in a single setting. Supply Chain city initiative would consent Ralph Lauren to make simple and coordinate their design process proficiently by administering apparel supply operations within a position. SCC would convey all the several apparel supply businesses to a single set which can make proficient in conditions of communication within the operations.