United colors of Benetton: One suucess story

Résumé du document

One of the 5 best-known brands of the world, Benetton is unanimously cited for its scandalizing campaigns it launched at the beginning of the 1990's.
It is obvious that the advertisement campaigns provoked violent reactions in the public, but one has to consider that those campaigns made people forget that the foundations of the success of the Italian Company was its ability to cope with the demand. Working exclusively with the Italian manufacturing companies, Benetton became the archetype of a new concept of structure

Extraits

[...] Benetton is working with 450 subcontracters, whose 200 are only in Italy, they take care of 80% of total production and produce 60% of “modeles”. Benetton communicate with an EDI system with their subscontracters, in order to give them instructions. When its produced, Benetton sent his trucs to get the products, and they do a first quality control. Most of this subcontracters are strongly dependable from Benetton ; Benetton own between 40% and 60% of 1/3 of their subcontracters. Benetton must then remain very close to its customer base in order to satify the demand . [...]

[...] “Edizionze Holding”, which is 100% owned by the Benetton family covers: Textile: the Benetton Group Sports article: Benetton Sportsystem Food distribution: more than 350 supermarkets and 9 hypermarkets Commercial food restaurants: around 450 places Finance: an investment finance company positioned in air conditioning and sanitary equipements. Production process What do they produce ? quantities ? ways ? equipments ? How does Benetton proceed Benettons' production general principle The Benetton production system, coordinated by a high-tech facility at Castrette (Treviso, Italy) is capable of turning out over 100 million casual and sportswear garments every year. [...]

[...] Logistic From the very beginning, Benetton decided to maintain direct control of the logistics phase and has invested heavily in automating logistics processes in order to achieve total integration within the production cycle, from customer orders to packing and delivery.The shipping centre, fully automated, has a capacity of 400,000 boxes and is able to handle 20,000 incoming and 20,000 outgoing boxes daily. With a workforce of only 24, the Automated Distribution System at Castrette automatically stocks, invoices, selects and ships the finished product directly to each of the Group's stores in 120 countries. Automated Sorting System These automated machines are capable of assembling individual orders for Benetton's 5,000 shops worldwide. [...]

[...] The main target is rather oriented to the international young and dynamic urban population. Today the Benetton group is the world's largest retailer with a network of 6000 large stores, smaller branches and franchises in 120 countries, worldwide. Its net income is 128 million euro which represents a important decrease, comparing the 2001 results, of more than 20%. The group is listed in Milan, Francfort and New York stock exchanges. Strategy The Benetton group with its global brands, is one of the well known in the world thanks to a dynamic communication strategy. [...]

[...] Within the framework of this initiative, all forwardings of clothing in cases of United Colors of Benetton will be also marked using intelligent labels based on I.CODE. " Benetton has thousands of shops in the world and wished to set up a technology with a future, which offers obvious economic advantages and allows, in all transparency, to carry out the follow-up of clothing during all their lifespan explains Terry Phipps, directing EDP (electronic data processing) within the Benetton Group. " Collaboration with Philips and LAB ID enabled us to create an integrated system which covers the whole of our activities, from manufacture to the assistance of the commercial personnel thanks to functions of follow-up in store, order and inventory control. [...]