Case Studies For Each KK

kk4 (technology) - zara

• zara uses automated production lines

  • helps speed up production

  • increases accuracy

  • allows the brand to keep up to date with trends, customer satisfaction

  • zara also leaves time for the factory to complete menial tasks, for example instead of having store managers or employees add tags in retail stores, they do this in their factories

• zara uses ai for its operations management

  • it processes sales data, pins down inefficiencies, and is vital for inventory management

  • zara also uses ai to help customers find the right size and understand how the garment will look, results in fewer returns and positive customer feedback

kk5 (materials management) - zara

• zara utilises just in time production methods to keep turnaround times as tight as possible, as they have a constant flow of goods to keep up with current trends as they change their apparel designs every two weeks

• zara avoids excess inventory by producing smaller quantities of garments

• through jit the company is able to order in small batches during the season based on current trends, small batches not only minimise losses if the trend doesn’t materialise, but also lends itself to the customers’ perception of “exclusivity”

kk6 (quality management) - tesla

• recalled thousands of its new cybertrucks over safety concerns

• it is because their accelerator pedals risked getting trapped by the interior trim, increasing the possibility of crashes

• tesla will fix the problem free of charge

• the company says an ‘unapproved change’ in the production of the pedal meant ‘lubricant’ was used in its assembly, which means the pad did not stick properly to the pedal

kk7 (waste minimisation) - patagonia

• patagonia uses sustainable and recyclable materials

• their products are built for durability to minimise waste

• in 2011 they launched their ‘dont buy this jacket’ campaign aimed at reducing their overall consumption

  • common threads initiative:

  • reduce: they make useful gear that lasts a long time, customers don’t buy what they don’t need

  • repair/reuse: they help to repair customers patagonia gear, and help find a home for gear customers no longer need, customers pledge to fix what’s broken, and sell or pass on gear they no longer need

  • recycle: patagonia takes back customer gear that is worn out, customers pledge to keep their stuff out of the landfill

kk8 (lean management) - aldi

• Weekly specials to generate interest and prevent oversupply

• Stock fewer product lines but in more volume- buy in bulk

• Aldi’s shopping trolleys have a deposit system. This ensures that customers return them after use. This results in fewer trolleys being lost and needing replacing.

• A comprehensive training programme enables staff to become multiskilled. This means that staff can undertake a number of different roles within each Aldi store, allowing staff to be flexible

• Products display numerous bar codes (and are bigger than other shops). This means that cashiers do not have to search for them and they can be scanned more quickly.

• Customers place products back in the trolley after scanning. They then pack their bags away from the till after paying.

kk9 (csr considerations) - patagonia

• patagonia has built a robust social-responsibility program that analyses and manages the impacts of their business on the workers and communities in their supply chain

• inputs:

  • whenever possible patagonia uses environmentally friendly materials, including materials derived from farms like organic cotton, and natural rubber

  • patagonia helped found a nonprofit called regenerative organic alliance, through this initiative they are working with cotton farms certified to the highest organic standard, which aims to rehabilitate soil, respect animal welfare and improve the lives of farmers. these practises reduce greenhouse gas emissions

  • they hold their suppliers to the highest environmental and social standards in the industry

• processes:

  • patagonia doesn’t make any of their products or own any of the factories that do. they partner with other companies to mitigate the harm they collectively create through the manufacturing of clothes

• outputs:

  • patagonia donates 1% of sales to grassroots environmental organisations

kk10 (global considerations) - toblerone

• toblerone is shifting its production in slovakia to bratislava

• this will help to cut costs and respond to the growing demand (overseas manufacturing means that toblerone can produce in larger volumes)

• however will lose its trademark ‘made in switzerland’, decrease reputation