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Gucci Designs its Supply Chain

Article Title: Gucci’s Surge and the Power of a Responsive Supply Chain

Author of Article: BOF Team

Date of article: October 27, 2017

Source URL: https://www.businessoffashion.com/articles/this-week-in-fashion/guccis-surge-and-the-power-of-a-responsive-supply-chain (Professional BOF membership required to access the article.)

With third-quarter revenue up 28%, Gucci is doing something right. The article describes Gucci’s moves to a more responsive supply chain by focusing on vertical integration of design and production.  Their focus on just-in-time manufacturing is intended to cut lead time from weeks to days.

Discussion Questions
1. How does Gucci create an order winner in the digital age?

Guidance: Review order winners/qualifiers, lean manufacturing and lean supply chains;  Students can then create a table showing order qualifiers relationship to lean manufacturing and lean supply chain concepts that help support the order qualifiers.  A discussion then can then ensue about which order qualifiers can become order winners for Gucci.

2. Can a supply chain be responsive without a just-in-time business model?

Guidance: This is a thought question for students to grapple with via classroom debate.  Suggest having half the class develop a 2 minute presentation arguing that only responsive supply chains require just-in-time and the other half of the class making the same presentation arguing that only efficient supply chains require just-in-time.  Conclude the presentations by pointing out to the class that both supply chain designs can benefit from a just-in-time approach.

3. How does Gucci’s new product development requirements impact the supply chain design decisions?

Guidance: Students should be asked to review the product life cycle for fashions.  Ask the students why a responsive supply chain design is a requirement for Gucci.

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