A Comparison of Sourcing Strategies in the Apparel Industry. Case Study of the H&M Group and Inditex

Business & Finance
Cover of the book A Comparison of Sourcing Strategies in the Apparel Industry. Case Study of the H&M Group and Inditex by Rob Nijmeijer, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Rob Nijmeijer ISBN: 9783668090934
Publisher: GRIN Publishing Publication: November 20, 2015
Imprint: GRIN Publishing Language: English
Author: Rob Nijmeijer
ISBN: 9783668090934
Publisher: GRIN Publishing
Publication: November 20, 2015
Imprint: GRIN Publishing
Language: English

Bachelor Thesis from the year 2015 in the subject Business economics - Miscellaneous, grade: 9, University of Groningen (Business Economics), course: Bsc International Business, language: English, abstract: In this thesis a comparison is made between the H&M Group and Inditex to measure the differences in overall performance of outsourcing and in-house production in the apparel industry. Outsourcing is often discussed in the literature as the perfect solution to cost reductions however the literature lacks results on the actual performance; this article measures the performance obtained through outsourcing and in-house production. H&M is studied because it has a fully outsourced production, where Inditex mostly produces its products in-house. Performance is measured by the follow variables: costs, agility, asset utilization and product quality. Costs and asset utilization were measured using an independent samples t-test; comparing costs of goods sold salary expenses and overall expenses as a percentage of the revenue, asset utilization is measured by comparing the return on assets ratio. Agility is studied by an in-depth analysis and product quality based on a survey on consumer perception. The results show that H&M has significantly reduced its costs by outsourcing, while Inditex with higher costs is able to keep a very short lead-time. H&M has been successful in increasing return on assets and product quality is perceived equal for both companies. This article contributes to the field of research by showing that outsourcing does lead to cost reduction, however in-house production leads to better performance in agility.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Bachelor Thesis from the year 2015 in the subject Business economics - Miscellaneous, grade: 9, University of Groningen (Business Economics), course: Bsc International Business, language: English, abstract: In this thesis a comparison is made between the H&M Group and Inditex to measure the differences in overall performance of outsourcing and in-house production in the apparel industry. Outsourcing is often discussed in the literature as the perfect solution to cost reductions however the literature lacks results on the actual performance; this article measures the performance obtained through outsourcing and in-house production. H&M is studied because it has a fully outsourced production, where Inditex mostly produces its products in-house. Performance is measured by the follow variables: costs, agility, asset utilization and product quality. Costs and asset utilization were measured using an independent samples t-test; comparing costs of goods sold salary expenses and overall expenses as a percentage of the revenue, asset utilization is measured by comparing the return on assets ratio. Agility is studied by an in-depth analysis and product quality based on a survey on consumer perception. The results show that H&M has significantly reduced its costs by outsourcing, while Inditex with higher costs is able to keep a very short lead-time. H&M has been successful in increasing return on assets and product quality is perceived equal for both companies. This article contributes to the field of research by showing that outsourcing does lead to cost reduction, however in-house production leads to better performance in agility.

More books from GRIN Publishing

Cover of the book Russian Nationalism in the Soviet Union, 1917-1991 by Rob Nijmeijer
Cover of the book Moralia Coniugalia - Étude sur l'impossible sacralité du mariage à l'époque de la raison by Rob Nijmeijer
Cover of the book The N-Word. The Usage of a Controversial Term in The Adventures of Huckleberry Finn and Nowadays by Rob Nijmeijer
Cover of the book Motivation theories - an overview by Rob Nijmeijer
Cover of the book The Carnivalesque Flows: Art and Advertising by Rob Nijmeijer
Cover of the book Jugend und Jugendkulturen im 21. Jahrhundert by Rob Nijmeijer
Cover of the book Language in use: The pragmatical term politeness in reference to the serial 'Friends' by Rob Nijmeijer
Cover of the book Nineteenth Century Gender Roles in Stephenie Meyer's 'Twilight' by Rob Nijmeijer
Cover of the book Global Persepctives of Leadership by Rob Nijmeijer
Cover of the book Financial Development and Economic growth in Cote d'Ivoire: The case of a Small Economy by Rob Nijmeijer
Cover of the book Arab Resistance in Palestine. From Fateh to the Foundation of the Palestinian Liberation Organization (PLO) by Rob Nijmeijer
Cover of the book Adopting a Strategic Approach within Retail Organisations by Rob Nijmeijer
Cover of the book Untold Story: The Media in China and North Korea by Rob Nijmeijer
Cover of the book The Influence of Business Associations in the European Decision Making Process - A Case Study of the European Chamber of Commerce and Industry by Rob Nijmeijer
Cover of the book Tricky Intuitions by Rob Nijmeijer
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy