H&M's Supply Chain Management Practices

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : OPER066 For delivery in electronic format: Rs. 400;
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Supply Chain Management

Case Length : 18 Pages
Period : 1997-2007
Organization : Hennes & Mauritz AB
Pub Date : 2008
Teaching Note : Not Available
Countries : Sweden
Industry : Apparel Retailing


The case discusses the innovative supply chain management practices of Sweden based apparel retailer - Hennes & Mauritz AB (H&M), which enabled the company to gain advantage over other fashion retailers in the world. H&M designed garments centrally at Stockholm, Sweden. These were then sent to the production offices of the company and then to the manufacturers. H&M did not own any manufacturing facilities and all the production was carried out by more than 700 independent suppliers located in Asia and Europe. In the case of garments that were in demand, H&M used the facilities of the manufacturers in Europe. The garments with longer lead times were made in Asia.

The garments manufactured at different locations across the world were sent to a central warehouse located in Hamburg, Germany. In every country in which it operated, H&M had a distribution center. From Hamburg, the garments were sent to these distribution centers, from where they were distributed locally. The garments were replenished every day depending on the demand. With constant replenishment, H&M maintained novelty in its products, due to which the customers visited the company's store repeatedly. The case explains in detail the design, production, distribution and store management processes at H&M.


Analyze H&M's supply chain management practices.

Study the design, production, distribution and store management processes of H&M.

Evaluate how H&M, through its efficient supply chain management, was able to bring new designs and trends to the customers in quick time.


  Page No.
Introduction 1
Background Note 2
Idea Generation and Design 3
Production 5
Distribution 8
Store Management 9
Conclusion 10
Exhibits 13


Hennes & Mauritz AB, Supply Chain Management, Lead Time, Designing, Production, Quality and Security Tests, Distribution, Store Management, Fast Fashion, Supplier Code of Conduct, Product and Information Flow

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