SUPPLY CHAIN STRATEGIES

DR. AMAD SAEED

INTRODUCTION TO SUPPLY CHAIN STRATEGIES
 What is a Supply Chain?
 A supply chain includes all the steps involved in getting a product or service from the supplier to the
customer.
 It covers raw material sourcing, manufacturing, warehousing, transportation, and distribution.
INTRODUCTION TO SUPPLY CHAIN STRATEGIES
Evolution of Supply Chain Management
 Logistics Era (Pre-1980s)
 Focus: Transportation, warehousing, and inventory control.
 Siloed operations; little integration between departments.
 Example: A manufacturer managed inbound and outbound logistics separately, often with manual records.

 Emergence of Supply Chain Management (1980s–1990s)

 Term “Supply Chain Management” was coined.
 Focus on linking logistics with procurement, manufacturing, and distribution.
 Emphasis on cost reduction and efficiency.
 Example: Use of MRP (Material Requirements Planning) systems to integrate production with raw material planning.
INTRODUCTION TO SUPPLY CHAIN STRATEGIES
Evolution of Supply Chain Management
 Integrated Supply Chains (2000s)
 Cross-functional integration across the organization and with external partners.
 Introduction of ERP systems and strategic sourcing.
 Emphasis on collaboration, visibility, and lean operations.

 Digital Supply Chains (2010s–Present)

 Enabled by technologies like IoT, Big Data, AI, Cloud Computing, and Blockchain.
 Focus on real-time tracking, predictive analytics, and customer-centricity.
 Example: Amazon’s real-time inventory updates and automated warehouse systems.
INTRODUCTION TO SUPPLY CHAIN STRATEGIES
Evolution of Supply Chain Management
 Resilient & Sustainable Supply Chains (Post-2020)
 Triggered by global disruptions like COVID-19 and geopolitical instability.
 Emphasis on risk mitigation, resilience, sustainability, and circular economy models.
 Example: Companies adopting near-shoring, dual sourcing, and green logistics.
WHAT IS A STRATEGY?
 What is a Strategy?

 Strategy is a plan of action designed to achieve a specific goal.

 It involves making decisions about resources, activities, and the overall direction of an organization or
project.
 It's about Choice: Strategy is fundamentally about making choices – what to do, and equally
important, what not to do. These choices differentiate an organization from its competitors.
WHAT IS A STRATEGY?
 What is a Strategy?

 Key Characteristics of Strategy

 Goal-Oriented: Defined by clear objectives that the organization aims to achieve.
 Forward-Looking: Anticipates future conditions and prepares the organization for them.
 Comprehensive: Encompasses all major functions and divisions of an organization.
 Adaptive: Flexible enough to adjust to changes in the internal and external environment.
 Resource-Dependent: Considers the available resources and capabilities of the organization.
 Unique/Differentiated: Aims to create a distinctive position in the market.
 Iterative Process: Not a one-time event, but an ongoing cycle of formulation, implementation, and
evaluation.
WHAT IS A STRATEGY?
 What is a Strategy?

 Why is Strategy Important?

 Provides Direction: Gives a clear sense of purpose and direction for the entire organization.
 Allocates Resources: Helps in prioritizing and allocating scarce resources effectively towards key objectives.
 Achieves Competitive Advantage: Enables an organization to outperform competitors and achieve superior
returns.
 Navigates Uncertainty: Prepares the organization to respond to market changes, risks, and opportunities.
 Fosters Alignment: Ensures that all parts of the organization are working cohesively towards common goals.
 Enhances Performance: Leads to better decision-making, efficiency, and ultimately, improved organizational
performance.
 The four main decision areas of strategy are: corporate strategy, business strategy, functional strategy,
and operational strategy
FOUR MAIN DECISION AREAS OF STRATEGY
1. Corporate Strategy: This level sets the overall direction and scope of the organization. It includes decisions about
the company's mission, vision, values, and overall competitive position.
 Example: Toyota aims to be the global leader in mobility and innovation while promoting sustainability and carbon
neutrality.
 Mission/Vision: To lead the future of mobility.

 Key Decision: Invest heavily in electric and hydrogen vehicles globally.

https://www.cascade.app/blog/strategy-levels
FOUR MAIN DECISION AREAS OF STRATEGY
2. Business Strategy: This level focuses on how individual business units compete within their specific
markets. It involves decisions about product development, pricing, marketing, and distribution.
 In its passenger car division, Toyota competes by offering fuel-efficient, reliable, and affordable vehicles (e.g.,
Corolla, Prius).
 Strategic Focus: Cost leadership and hybrid technology.
 Key Decision: Differentiate through hybrid vehicles while keeping costs low.

https://www.cascade.app/blog/strategy-levels
INTRODUCTION TO SUPPLY CHAIN STRATEGIES
 3. Functional Strategy: This level focuses on the specific functions within a business unit. It includes
decisions about how to manage operations, finance, human resources, and technology.
 Toyota uses Just-in-Time (JIT) production to minimize inventory and waste while ensuring timely delivery.
 Key Decision: Partner with reliable suppliers close to factories; integrate lean manufacturing processes.

https://www.cascade.app/blog/strategy-levels
FOUR MAIN DECISION AREAS OF STRATEGY
3. Functional Strategy: This level focuses on the specific functions within a business unit. It includes decisions
about how to manage operations, finance, human resources, and technology.
 Toyota uses Just-in-Time (JIT) production to minimize inventory and waste while ensuring timely delivery.
 Key Decision: Partner with reliable suppliers close to factories; integrate lean manufacturing processes.

https://www.cascade.app/blog/strategy-levels
FOUR MAIN DECISION AREAS OF STRATEGY
4. Operational Strategy: This level focuses on the day-to-day operations and tasks needed to implement the
functional strategies. It involves decisions about schedules, resource allocation, and process improvements.
 At a local manufacturing plant:
 Daily production schedule is optimized.
 Workers follow standard operating procedures (SOPs) for quality checks.
 Resources (materials, machines, labor) are allocated efficiently to meet JIT timelines.

https://www.cascade.app/blog/strategy-levels
INTRODUCTION TO SUPPLY CHAIN STRATEGIES
 Operational Strategy: This level focuses on the day-to-day operations and tasks needed to implement the
functional strategies. It involves decisions about schedules, resource allocation, and process improvements.
 At a local manufacturing plant:
 Daily production schedule is optimized.
 Workers follow standard operating procedures (SOPs) for quality checks.
 Resources (materials, machines, labor) are allocated efficiently to meet JIT timelines.

https://www.cascade.app/blog/strategy-levels
FOUR MAIN DECISION AREAS OF STRATEGY

Strategy Level Focus Area Toyota Example

Global leadership in sustainable
Corporate Overall direction of the company
mobility
Affordable, fuel-efficient cars
Business Competing in a specific market
(Corolla, Prius)
Just-in-Time supply chain & lean
Functional Departmental strategies
manufacturing
Scheduling production, allocating
Operational Day-to-day execution
materials at factory level
Class Activity
INTRODUCTION TO SUPPLY CHAIN STRATEGIES
 Class Activity: Build Your Own Company Strategy
 Duration: 30–45 minutes - Group Size: 4–5 students per group
Instructions:
 Step 1: Choose a Company Type (5 minutes) Group Presentations (10–15 minutes)
 Each group chooses a company type. Examples: Each group presents their strategy hierarchy in a
 A tech startup launching a new app brief 2–3 minute pitch.
 An automobile manufacturer
 A food delivery service
 A clothing brand
 A chain of eco-friendly hotels
 Step 2: Develop Strategies (20 minutes)
 Each group fills in the following Strategy Planning Template:
Strategy Level Group Task
Corporate Strategy Define the mission, vision, long-term goals. E.g., Global expansion, sustainability, innovation.
Business Strategy Decide how the business will compete in its market (e.g., low cost, quality, customer service).
Functional Strategy Choose specific strategies for departments like marketing, HR, operations, or supply chain.
Operational Strategy Describe day-to-day processes to implement functional strategies (e.g., daily task plans, resource use).
 Example Group Output (for a food delivery startup):

Level Strategy
Corporate To become the most reliable and sustainable food delivery platform in Asia.
Business Compete by offering the fastest delivery and eco-packaging.
Logistics team will partner with electric bike services. Marketing will target environmentally conscious
Functional
customers.
Operational Riders get optimized daily routes via app; packaging team uses reusable containers sourced weekly.
SUPPLY CHAIN STRATEGY
 Supply Chain Strategy
 A supply chain strategy is the long-term plan an organization uses to manage and align its end-to-end supply
chain activities with its overall business objectives.
 It serves as a roadmap for making decisions on procurement, manufacturing, logistics, distribution, and customer
service.

 Purpose of a Supply Chain Strategy:

 To maximize value creation for both the organization and the customer.

 To balance efficiency (cost) and responsiveness (speed) depending on product type and market need.

 To ensure the supply chain is agile, resilient, and scalable in response to changes in demand or disruptions.

 A company producing mass-market detergents uses a cost-leadership supply chain strategy, focusing
on minimizing production and logistics costs while maintaining consistent product availability.
SUPPLY CHAIN STRATEGY
 Why are Supply Chain Strategies Important?
 Competitive Advantage: Enables companies to differentiate themselves through cost leadership, superior
service, faster time-to-market, or unique product offerings.
 Cost Reduction: Optimizing processes, reducing waste, and improving efficiency throughout the chain.
 Customer Satisfaction: Meeting customer demands for product availability, delivery speed, and quality.
 Risk Mitigation: Building resilience against disruptions (natural disasters, geopolitical events, supplier failures).
 Increased Profitability: By reducing costs and increasing revenue through improved customer service.
 Sustainability & Ethical Practices: Addressing environmental and social concerns, enhancing brand reputation.
 Innovation: Facilitating the introduction of new products and services efficiently.
SUPPLY CHAIN STRATEGY
 Key Objectives of Supply Chain Strategies
 Cost Efficiency: Minimizing total supply chain costs, including procurement, production, inventory, and
transportation.
 Responsiveness/Agility: Ability to react quickly to changes in demand, market conditions, or disruptions.
 Quality: Ensuring consistent product or service quality throughout the chain.
 Customer Service: Meeting or exceeding customer expectations regarding delivery, availability, and reliability.
 Asset Utilization: Optimizing the use of resources such as inventory, equipment, and facilities.
 Sustainability: Minimizing environmental impact and promoting ethical labor practices.
 Innovation & Product Development Support: Facilitating the timely and cost-effective introduction of new
products.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Push vs. Pull Strategies: Fundamental approaches to production and distribution.

 Lean Supply Chain Strategy: Focus on efficiency and waste reduction.
 Agile Supply Chain Strategy: Focus on responsiveness and flexibility.
 Resilient Supply Chain Strategy: Focus on mitigating disruptions and recovery.
 Green or Sustainable Supply Chain Strategy: Focus on environmental and social impact.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Push vs. Pull Strategies:

 Push Strategy

 Concept: In a Push Strategy, production and distribution decisions are based on long-term
forecasts of customer demand. Products are manufactured in anticipation of orders and
"pushed" through the supply chain to distributors, retailers, and ultimately to the customer. The
focus is on achieving economies of scale in production and ensuring product availability.
 Characteristics:
 Relies heavily on accurate demand forecasting.
 High levels of finished goods inventory are common throughout the supply chain.
 Production is often batched for efficiency.
 Less flexible to sudden changes in demand or product mix.

 Risk of obsolescence and high holding costs if forecasts are inaccurate.

SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Push vs. Pull Strategies:

 Example:
 Procter & Gamble (P&G) and Consumer Staples: P&G, a multinational consumer goods company,
uses a classic push strategy for many of its products like detergents (e.g., Tide), diapers (e.g.,
Pampers), and toothpaste (e.g., Crest).
 How it works: P&G forecasts the demand for these high-volume, relatively stable-demand products
months in advance. Based on these forecasts, they produce large batches of these goods.
 They then "push" these products through their distribution network to large wholesalers, retailers like
Walmart and Carrefour, and eventually to individual stores.
 The goal is to ensure that shelves are always stocked and products are readily available when a
customer walks into a store, even before the customer expresses an explicit demand for that specific
item on that day. They rely on advertising and brand loyalty to generate the eventual sale from the
readily available stock.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Push vs. Pull Strategies:

 Pull Strategy

 Concept: In a Pull Strategy, production and distribution are triggered by actual customer
demand or consumption. Products are manufactured only when there is a confirmed order or
signal from downstream in the supply chain (e.g., a customer purchase at a retail store). The
demand "pulls" the product through the supply chain.
 Characteristics:
 Production is demand-driven, often referred to as "make-to-order" or "assemble-to-order."
 Low levels of finished goods inventory; focus on minimizing waste and holding costs.
 Highly flexible and responsive to changes in customer demand.
 Requires robust information systems and agile manufacturing processes.
 May result in longer lead times for customers compared to readily available push products.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Push vs. Pull Strategies:

 Pull Strategy
 Example:

 Dell Computers (Customized PCs):Historically, Dell was a prime example of a company using a
pull strategy for its customized personal computers.
 How it works: When a customer wanted to buy a Dell computer, they would go online and
configure their desired specifications (processor, RAM, hard drive, graphics card, etc.).Only after
the customer placed and confirmed this order would Dell initiate the production process. They
would "pull" the necessary components from their inventory, assemble the specific computer, and
then ship it directly to the customer.
 This allowed Dell to avoid holding large inventories of finished goods, reduce the risk of
obsolescence (especially in fast-changing tech), and offer a high degree of customization, all
driven by actual customer demand
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Lean Supply Chain Strategy:

 Core Principle: Eliminate waste and maximize value throughout the entire supply chain.
 Focus on delivering exactly what the customer needs, when they need it, with minimal resources.

 Key Goals:
 Reduce costs (inventory, operations, defects).
 Improve efficiency and speed.
 Enhance quality.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Lean Supply Chain Strategy:

 Common Wastes Targeted (Muda):
 Overproduction: Producing too much, too soon.
 Excess Inventory: Holding unnecessary stock.
 Waiting: Idle time.
 Unnecessary Transportation/Motion: Inefficient movement.
 Defects: Errors requiring rework.
 Over-processing: Doing more than required.

 Foundational Concepts:
 Just-in-Time (JIT): Deliver/produce only when needed.
 Continuous Improvement (Kaizen): Ongoing waste elimination.
 Value Stream Mapping: Visualizing processes to spot waste.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Lean Supply Chain Strategy:

 Example: Company: Toyota (through its Toyota Production System - TPS)
 How they apply Lean:
 JIT Delivery: Suppliers deliver parts to the assembly line just as they're needed, minimizing huge
warehouses and inventory costs. (e.g., Car seats arrive hours before installation).
 "Pull" System (Kanban): Production is triggered by actual demand. When a part is used, a signal
(Kanban) is sent to the previous stage/supplier to replenish, preventing overproduction.
 Quality Built-In (Jidoka): Machines stop automatically upon detecting defects, preventing problems from
moving down the line. Operators fix issues immediately.
 Strong Supplier Partnerships: Long-term collaboration with a smaller, highly reliable supplier base
ensures smooth JIT operations and shared problem-solving.
 Result: High efficiency, superior quality, rapid response to market changes, and competitive costs by
constantly removing non-value-adding activities.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies
 Agile Supply Chain Strategy:
 Core Principle: Emphasize responsiveness, flexibility, and adaptability to
quickly react to market volatility, customer demands, and unexpected
disruptions.
 Prioritizes speed and ability to change over static efficiency.
 Key Goals:
 Quickly sense and respond to demand shifts.
 Adapt to new product introductions or changes.
 Mitigate the impact of supply chain disruptions.
 Improve customer satisfaction through rapid fulfillment.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Agile Supply Chain Strategy:

 Key Characteristics:
 Market Sensitivity: Constantly monitoring customer needs and market trends.
 Virtual Integration: Strong information sharing and collaboration with suppliers and customers, often
using technology.
 Network Fluidity: Ability to reconfigure production, logistics, and supplier networks quickly.
 Postponement: Delaying product differentiation until closer to the point of sale to maintain flexibility.
 Information-driven: Relies on real-time data and analytics for rapid decision-making.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Agile Supply Chain Strategy:

 Example: Zara (Inditex Group):
 How they apply Agility:
 Rapid Design-to-Market Cycle: Zara can design, produce, and deliver new fashion items to stores
globally in as little as 2-4 weeks (compared to 6-9 months for traditional fashion retailers). This allows
them to quickly capitalize on emerging trends.
 Demand-Driven (Pull System): Store managers continuously send feedback on what's selling well (and
what's not) directly to the design and production teams. Production volumes are low for initial batches,
and then scaled up rapidly only for items that prove popular. This avoids overproduction of undesirable
styles.
 Flexible Manufacturing: While some basic items are outsourced, Zara maintains a significant portion of
its manufacturing (dyeing, cutting, prototyping) close to its headquarters in Spain. This central control
allows for quick adjustments to production runs and designs.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Agile Supply Chain Strategy:

 Example: Zara (Inditex Group):
 How they apply Agility:
 Centralized Distribution: A highly efficient, automated distribution center handles all garments. Trucks
deliver new merchandise to stores twice a week, ensuring fresh inventory and quick replenishment.
 Information Sharing: Tight integration and real-time information flow between retail stores, design
teams, and manufacturing facilities are crucial for sensing trends and rapid response.
 Result: Zara's agile supply chain minimizes fashion risk, reduces markdown costs from unsold
inventory, and consistently delivers "fresh" fashion to customers, making it a leader in the fast-
fashion industry.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Hybrid (Leagile) Supply Chain Strategy:

 A Leagile (Lean + Agile) strategy combines the cost-efficiency and waste-reduction principles of
Lean with the flexibility and responsiveness of Agile. It's designed to optimize different parts of the
supply chain based on their specific characteristics, often by creating a "decoupling point" or
"push-pull boundary.“
 Upstream (Push/Lean): Focus on efficiency, cost reduction, and economies of scale for stable,
predictable components or processes.
 Downstream (Pull/Agile): Focus on responsiveness, flexibility, and customization for volatile customer
demand or final product assembly.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Hybrid (Leagile) Supply Chain Strategy:

SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Hybrid (Leagile) Supply Chain Strategy:

 How it Works: The decoupling point (often inventory) separates the "lean" activities (forecast-driven,
efficient) from the "agile" activities (demand-driven, responsive). Standardized or common
components are "pushed" to this point, while final assembly or customization is "pulled" based on
actual customer orders.
 Benefits: Achieves a balance between low cost and high responsiveness, enabling organizations to
handle both stable and volatile aspects of their business effectively.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Hybrid (Leagile) Supply Chain Strategy:

 Example: Dell Computers (Revisited for Leagility)
 Upstream (Lean/Push): Dell would forecast demand for common, high-volume components like
processors, memory, hard drives, and power supplies. They would then source and push these
standardized parts efficiently into central warehouses near their assembly plants, leveraging
volume discounts and long-term supplier relationships. This part of the supply chain operates
leanly.
 Decoupling Point: The inventory of these standardized components acts as the decoupling point.
 Downstream (Agile/Pull): Once a customer places a specific, customized order for a computer
(e.g., specific RAM, graphics card, operating system), that order pulls the required components
from the decoupled inventory. Dell's assembly lines then rapidly configure and assemble the
unique computer, allowing for high responsiveness and customization without holding vast
amounts of finished goods inventory.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Resilient Supply Chain Strategy:

 Core Concept: The ability of a supply chain to anticipate, withstand, and recover from disruptions
(e.g., natural disasters, geopolitical events, cyberattacks, supplier failures) while maintaining
continuity of operations.
 Focuses on building robustness and agility to minimize negative impacts.

 Key Goals:
 Minimize downtime and financial losses during disruptions.
 Maintain customer service levels despite challenges.
 Enhance adaptability and speed of recovery.
 Strengthen long-term viability against uncertain
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Resilient Supply Chain Strategy:

 Key Characteristics:
 Visibility: Real-time data across the entire chain for early warning.
 Diversification: Multiple suppliers, production sites, and logistics routes.
 Flexibility: Ability to reconfigure operations quickly.
 Collaboration: Strong partnerships for shared risk and rapid response.
 Contingency Planning: Pre-defined plans for various disruption scenarios.
 Proactive Risk Management: Identifying and mitigating potential risks before they materialize.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Resilient Supply Chain Strategy:

 Example: Company: Intel – A global leader in semiconductor manufacturing, operating in an
industry highly vulnerable to supply chain disruptions (e.g., natural disasters, geopolitical tensions,
factory fires).
 How they apply Resilience:
 Geographic Diversification: Operates a global network of fabrication plants (fabs) across different
continents (e.g., U.S., Ireland, Israel) to avoid single points of failure. If one region is hit by a disaster,
others can potentially ramp up production.
 Multi-Sourcing for Critical Materials: While they have core competencies, Intel strategically qualifies
multiple suppliers for critical raw materials and components, reducing dependence on any one vendor.
 Buffer Inventory for Key Components: For highly critical or long-lead-time components, Intel
maintains strategic inventory buffers (safety stock) to absorb short-term supply shocks.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Resilient Supply Chain Strategy:

 Example: Company: Intel
 How they apply Resilience:
 Real-time Monitoring & Analytics: Utilizes advanced systems to monitor global events, supplier
performance, and logistics flows, enabling rapid identification of potential disruptions.
 Redundant Logistics Networks: Has established alternative shipping routes and transportation
providers to ensure components can reach fabs and finished products can reach customers even if
primary routes are disrupted.
 Impact: Intel's robust resilient supply chain strategy helps them navigate the highly volatile
semiconductor industry, ensuring a more stable supply of critical chips to their customers even
amidst significant global challenges, which is crucial for maintaining market share and customer
trust.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Sustainable Supply Chain Strategy:

 Core Concept: A Sustainable Supply Chain Strategy integrates environmental, social, and economic
(governance) considerations into all aspects of supply chain management, from sourcing raw
materials to product delivery and end-of-life.
 It aims to achieve long-term value creation without compromising the ability of future generations to
meet their own needs.
 Goals (The Triple Bottom Line):
 Environmental (Planet): Minimize ecological footprint (e.g., reduce carbon emissions, waste, water
usage, pollution).
 Social (People): Ensure ethical labor practices, fair wages, safe working conditions, and community
well-being across the entire chain.
 Economic (Profit): Enhance long-term financial viability through efficiency, risk reduction, and brand
reputation, not just short-term gains.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Sustainable Supply Chain Strategy:

 Why it's Important:
 Risk Mitigation: Reduces exposure to regulatory fines, supply disruptions, and reputational damage.
 Brand Enhancement: Improves consumer trust, loyalty, and employee attraction.
 Cost Savings: Through efficiency, waste reduction, and resource optimization.
 Compliance: Meets growing regulatory and stakeholder demands.
 Long-term Viability: Builds a resilient and responsible business for the future.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Sustainable Supply Chain Strategy:

 Example:
 Company: Patagonia – An outdoor apparel and gear company renowned for its deep commitment
to environmental and social responsibility.
 How they apply Sustainability across their Supply Chain:
 1. Sustainable Sourcing:
 Heavy use of recycled materials (e.g., recycled polyester for fleece, recycled nylon) and organic cotton (reducing
pesticide use).
 Commitment to Fair Trade Certified factories, ensuring fair wages and safe conditions for workers.
 Traceability initiatives for materials like down and wool to ensure ethical animal treatment.
SUPPLY CHAIN STRATEGY
 Types of Supply Chain Strategies

 Sustainable Supply Chain Strategy:

 2. Responsible Manufacturing & Operations:
 Partnering with factories that adhere to strict environmental and labor standards.
 Investing in renewable energy at their facilities and encouraging suppliers to do the same.

 Minimizing water use and chemical pollution in dyeing and finishing processes.

 3. Product Design for Durability & Longevity:

 Designing high-quality, durable products meant to last for years, counteracting "fast fashion."

 "Worn Wear" program encourages customers to repair, reuse, and recycle their garments, providing repair guides
and services.
 4. End-of-Life Management:
 Offers free repairs for their products.
 Provides recycling options for garments that are beyond repair.
Class Activity
Supply Chain Strategy Design Challenge