Case Study of Supply Chain Management at Luen Thai

Table of Content

1. Develop a model to understand the collaborative supply concatenation issues between the three spouses. Comparing with traditional supply concatenation system, in collaborative supply concatenation, parties go along with on universally distinguishable ends, and utilize their sole but matching abilities in order to accomplish long term competitory advantage. The common aims are defined with respect to specific undertakings and realized it.

natural stuff sourcing, merchandise design, fabrication, logistics by a 3rd party, logistics supplier and retail, all these operations take topographic point during the collaborative supply concatenation.

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The foremost restriction in the supply concatenation procedure is consequence that all operations occurred in a consecutive mode instead than a synchronous 1. For illustration, the merchandise design was implemented by the design squad of Polo, but the prompt and rapid convey of information to other spouses, particularly when last minute alterations in design had to be featured, practically was ne’er attained.

Decision doing procedure was based on old information due to bury non Intra Company maintaining information.

Value creative activity could be obtained by the better stock list direction, operation and logistic. Effective supply concatenation allows to be achieved All these factors. In EDI conditions, operation was fragmented, sectioned and portioned, which was caused by non sophisticated communicating tools, such as electronic mail and facsimile. In a whole communicating in the company was non systematic and ordered.

Once more to stress this issue, prompt information bringing was the most of import weak topographic point in the entire system. This job caused rise of stock list cost, replenishment clip, reoccurrence of bullwhip consequence, which leads to coordination loss in supply concatenation, because of misunderstanding of demand information. All the above mentioned points and issues could do stock out which ends with client and gross losingss.

Silo Approach_ decrease capablenesss following logistic. Difference and inequality of databases between sellers and retail merchants. Excel paperss were filled manually so, human error could do extremist consequences.

Well calculated order replacing and expectancy could non been attained due to obstructions refering coaction and information distribution every bit far as the parties were on responsibility merely on their machines.

2. Highlight supply concatenation conceptual underpinnings and differentiate between traditional supply concatenation direction and supply concatenation coaction in the context of Luen Thai & A ; Polo.

As we see from the instance, originally, there is consecutive mutuality between the spouse ‘s activities in the concatenation. Consequently merely when one phase accomplished the other merely so started. Afterward there is shared interdependence information of exchange which leads to the hold of the procedure which is the menaces of the station quota government. So, it is critical to switch on the modern and more sophisticated theoretical account of supply concatenation.

Therefore, traditionally each portion of the dress concatenation operated more or less independently, without effort together solves common jobs. Each member distrusted spouse members and believed in merely single abilities. Although the coaction thought was good, important dedications were ne’er made towards accomplishing it, neither footings of information sharing nor serious fiscal committednesss. However, the three was reciprocally back uping, they performed as degage parties.

Real clip information flow between the parties will be ensured by the new adopted supply concatenation. The alteration A«Original Equipment Manufacturer ” ( OEM ) into “ Design-to-store ” ( D2S ) theoretical account would originate retail merchant ‘s more and deep engagement in the procedure which ensures more effectual coaction than it was during the clip of the tradition Al pattern.

3. Analyze how engineering will enable coaction amongst Luen Thai and its spouses and the consequence of such coaction?

D2S, The new theoretical account adopted by the Polo, made possible better cooperation in:


Logisticss by helping the company and its spouses compose better declarations, implement more efficient processs.


.Efficient and effectual transportation of information between makers and interior decorators ensured betterment of merchandise design. A web base plat signifier of existent clip information and standardised communicating facilitated spouses extended coaction.


The new engineering let spouses to pass on information mentioning merchandise designs and immediate alterations during the production procedure. By incorporating the new expertness between the company and other parties, it will digest information web-based exchange to be carried out in a mode that eliminate past communicating drawbacks with phones and facsimiles.

Polo applies engineering to roll up information where they can detect, look into and react to client ‘s demand. Using this method the company is capable to cover and get by with the wants and demands of its purchasers by salvaging the information in one precise infinite on the web. The new engineering warrant clear and comprehendible information, which can be besides transferred from one portion of the company to another.

4. Analyze how Polo ‘s relationship with Luen Thai has evolved and analyze the impact of coaction on Polo ‘s concern theoretical account?

Every stylish dress company needs to be highly competitory in the market in order to achieve clients and market portion. It is critical to hold capableness to run into client ‘s demands quickly and be on the right clip on the right topographic point. The most of import function in this state of affairs is operations effectivity and efficiency. Operation, on its side requires effectual and collaborative supply concatenation direction, which avoids miscommunication and information hold. Crucial facet in supply concatenation as we see from the instance is that all the spouses need to work and run in the synchronised mode. The coaction helps company to stand out from the rivals. Luen Thai has the indispensable map in all these above mentioned issues. It besides manages in minimising stocks.

The three spouses had built a strong foundation to a lasting and committed relationship but the relationship was non institutionalized boulder clay Luen Thai committed itself to a greater function in the full dress supply concatenation. This greater function leads to better coaction among all channel spouses and greater integrating in the supply concatenation. . In the instance of Polo, it was the market force per unit area that leads to the alteration and function in the supply concatenation while in the instance of Luen Thai it was a reappraisal of the company ‘s function in the value concatenation that made them acquire involved in design development, logistics and greater coaction with upstream and downstream spouses.

Luen Thai therefore had to co-ordinate with Ruentex and ensures that the right fabric supply every bit good as with Polo for their design demands so as to fabricate the right garment cost efficaciously and quickly.

Henry Tan, CEO of Luen Thai being a visionary had evaluated assorted supply concatenation theoretical accounts before integrating the present 1. The major theoretical accounts that were evaluated included theoretical accounts adopted by Liz Claiborne, Howick, PTC and VF. All these dress makers to some extent had incorporated assorted Supply Chain Technologies to guarantee that every participant of the supply concatenation was up to day of the month with the designs and other demands.

Effective communicating between Polo and its spouses will be achieved by this sophisticated method of supply concatenation, such as coaction. It leads to expectancy of merchandise designs and prompt transmutation during the production path. It wills besides extinguish drawbacks which occurred frequently during the earlier processs, while they used facsimiles and phones. This supply concatenation system has another advantage every bit good, which is garnering and roll uping information in one topographic point, this organized information helps company and its spouses to reply drastically client ‘s demand and demands.

5. How does Supply Chain City inaugural complement the D2S enterprise? What are the synergisms?

Supply Chain City, implemented by Luen Thai was an alternate theoretical account for their concern. At first, Luen Thai received a scope of merchandises indispensable for fabricating the goods from distributers and makers to widen worldwide. This needed rigorous control of supply concatenation to guarantee that the needful figure of goods reach the Luen Thai maker. Above and beyond, this besides raised the cost of transit to the makers. The most critical point was the hold in reception of drawings and thoughts from the interior decorator to the maker. Keeping this as the major object, Luen Thai developed the thought of a supply Chain City that would run assorted dress supply operations such as design & A ; development, logistics & A ; distribution, supplies, embroidery proving, production, printing, lavation and sample devising in one location.

Contribution to Collaboration

This method allowed Luen Thai to progress relationships between the upstream and downstream spouses.

This every bit good allowed the fabricating unit to entree the design Centre of Luen Thai and supply proficient support such as rinsing and sample devising, embellishment, printing

This enabled Luen Thai to follow design procedure for Polo in add-on to piece smaller batches of supply.

It allowed immaculate exchange of information and experience between LuenThai and Ruentex the fabric maker.

The supply concatenation metropolis enterprise complements D2S by facilitated tally different dress supply operations such as, logistics and distribution, design and development, supplies proving, printing, lavation, embellishment, production, and sample devising in one scene. Supply Chain metropolis enterprise would accept Ralph Lauren to do straightforward and organize their design procedure expeditiously by administrating dress supply operations in a individual location. SCC would convey all the different dress supply operations to a individual set which will do proficient in footings of communicating within the procedures.

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Case Study of Supply Chain Management at Luen Thai. (2017, Jul 17). Retrieved from

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