suppliers/manufactures which don’t provide same flexibility as these suppliers could request orders to be placed few months in advance.
Zara is outsourcing all the labour intensive tasks mainly the sewing, while the cutting is done in-house. This produces of saving labour cost, flexibility of meeting deadlines, keeping the designs/fashions strictly controlled.
Labeled and priced goods
Cost Category Examples of Relevant costs
Direct medical costs Hospitalizations, physician visits, drugs etc
Fixed costs Costs that do not vary according to degree of use, such as overhead, including heat, lighting, rent
Variable costs Costs that vary as a function of volume, such as drug costs, fees for professional services, supplies
Direct non-medical costs Transportation, caregiver costs,
cost and differentiation competitive advantage with continuous improvement.
From Cost Leadership
Toyota has been made supplier and partner relationships driving low cost advantage. A common theme across the companies that base their strategy around low cost leadership is supplier relationships. In other words they have sufficient control over in-bound supplies and logistics. Their cost effec
Specialty store retailer of Private label Apparel
A Company doing all the procedures by itself
Reduces Distribution Processes
Manages Products and Consumer Information Efficiently
Shortens Supply Time + Reduces Production Costs
High Speed of Product Rotation
2 weeks of Product Life Cycle – New Releases Everyday!
Trendy Products
Flexible Designs – Attracts Sensit
1 ) Reduced price and features
▪ Focused on the customers at the low end where the mass market was located
▪ Provided a less expensive product in a more convenient location
▪ Introduced a new line with a more
basic jean product for a lower price.
Appeals to a large audience
Thought of Wal-Mart
" Driving costs out of the supply chain would
let it offer p