Components in the Supply Chain:
- Collaborative Planning, Forecasting, and Replenishment (CPFR): this is a business practice in which suppliers and retailers, collaborate in planning and demand forecasting in order to ensure that members of the supply chain will have the right amount of raw materials and finished goods when they need them. The goal of CPFR is to streamline product flow from manufacturing plants all the way to customers homes.
- AllSaints has an effective CPFR strategy in place. If the customer orders online, the product arrives in a good amount of time to the customers home and that they are pleased with their order, and there are no surprises. One area that AllSaints needs improvement on is the planning and demand forecasting components. Many items on the website are often sold out in certain sizes or even sold out all together. AllSaints needs to be planning better for these items because they are of high demand. When a customer sees a product they want, they do no want to wait weeks or months to receive it. In the end, this will result in frustration for the customer. AllSaints needs to work on this, and turn all of their customers into loyal customers, who do not want to shop anywhere else
- Supply Chain Management (SCM): Supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.
- AllSaints and AllSaints.com have an efficient SCM. AllSaints has a sustainable competitive advantage in their products and the craftsmanship of their products. AllSaints stands very firm in the way that there products are made and produced, and that they are done so in the highest of quality. Therefore maximizing the value to the customer knowing what they are paying for. AllSaints develops and runs their supply chains in very effective and efficient ways.
- Vendor-Managed Inventory (VMI): A system in which retailers make their suppliers fully responsible for determining when to order and possibly how much to order.
- AllSaints and AllSaints.com have effective VMI and therefore are no longer burdened with inventory management, demand forecasting is easier, the supplier for AllSaints can see the potential need for an item before the item is ordered, there are no purchase orders, inventories are kept low, and stock-outs become infrequent. Although AllSaints.com does sell out of merchandise, they tend to get new stock in frequently, and efficiently.
- Customer Relationship Management (CRM): This is a widely implemented model for managing a companies interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processed, mostly sales activities, but also for marketing and customer service. The overall goals are to find, attract, and win new customers, service and retain those that the company already has. A CRM system may be chosen because it is thought to decrease overall costs, and increase profitability.
- AllSaints.com has an efficient CRM strategy, but it needs to be improved. Unlike other websites, AllSaints does not offer discounts or promotions, that can turn some customers away. Also, since AllSaints does not use a lot of marketing to raise brand awareness, but rather uses the 'word of mouth' approach, it is difficult to win new customers. But, when AllSaints gains a new customer, that customer is guaranteed quality, craftsmanship and service that is hard to find anywhere else.
- Just In Time (JIT): A production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs.
- AllSaints.com could have many benefits if using the JIT approach. Some of these benefits include; reduced set up time, the flow of goods from warehouse to shelves improves, employees with multiple skills are used more efficiently, increased emphasis on supplier relationships, supplies come in at regular intervals throughout the production day, minimizes storage space needed, and a smaller chance of inventory breaking.
- Brand Awareness: The extent to which a brand is recognized by potential customers, and is correctly associated with a particular product. Brand awareness is an essential part of brand development which helps the brand stand out from the others.
- AllSaints definitely has a unique brand awareness. The customers that are aware of AllSaints and their product recognize when they see it, even if it isn't in the store. For example, AllSaints is known for their unique and fabulous coats. I own an AllSaints coat and when I wear it, I get multiple compliments and most people recognize that it is an AllSaints coat.
- Segmenting/Targeting/Positioning: Selling men’s, women’s and children’s
clothing as well as home furnishings, their name has become synonymous
with cutting edge fashion for those in the know.
- Aiming towards a trendy, style aware niche with a target demographic of 18- 35, AllSaints has adopted a unique approach to their marketing, retail and online strategies. Their vision as conveyed through their mission statement, “to create a brand that blends music and fashion into a potent formula of desirable clothing that expresses individuality and attitude” penetrates through their design decisions, social media strategy, store design and e-commerce. Their success is a result of their unique approach. Over the last decade they have made a name for itself amongst style conscious shoppers as the first stop for design led fashion that never follows trends. This is a key idea that sets them apart form their competitors.
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By adopting gender segmentation in their approach to social media and posting separately about women’s wear and menswear, AllSaints has successfully driven engagement from both men and women, equally. By targeting men with posts about music and women with information about fashion collections, they have grown a loyal fan base. The crux of their social media campaign has been to introduce followers to product launches and items of special interest ultimately driving potential online consumers back to the ecommerce website, for both additional brand building and increased conversion to sales
- AllSaints clearly provides an interesting example of how companies can better understand what is the most effective way is to engage their consumers. Their retail concepts, e-commerce site, social media campaigns, music service and an emphasis on independent, design led fashion that does not follow trends have secured AllSaints’ place as one of the few truly original but financially viable brands of today.
