Global Sourcing- Benefits and Challenges for H&M

Global Sourcing-

Benefits and challenges for H&M

Abstract

In today’s competitive marketplace and ever-changing environment, what distinguishes an organization that succeeds from others? How the firms benefit in establishing the global sourcing strategies?

Global sourcing regards as one of the important strategies in supply chain management. The report will study and investigate the benefits and challenges of global sourcing. HENNES & MAURITZ (H&M) established since 1947, which offers fashion for women, men, teenagers and children. In 2008, H&M operates with 1700 stores in 33 countries. The report has chosen H&M as a case study of global sourcing. The aims of report are to understand how H&M manages the supply chain network and to study the benefit and challenge of global sourcing in H&M.

Information and data are collected by research and interview with H&M Merchandising Manager on 7 November 2008. The report covers the H&M background, goals, operation features and mainly focus on benefits, requirement and challenges of global sources. Benefits in terms of cost reduction, better quality and availability. Requirement in terms of supported by top management, build up long term business relationship and knowledge of foreign regulations. Challenge in terms of political environment, limitation of qualified source, quota system and exchange rate and interest rate.

TABLE OF CONTENTS

Page

|CHAPTER 1 INTRODUCTION | |

|OBJECTIVE…….……………………………………………………… |5 |

|BACKGROUND………………………………………………………... |6 |

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|CHAPTER 2...