L8 - Signature Supply Chains Flashcards
What are the 3 M’s specialised to A&F?
They are Means, Mobility and Motive.
What three factors do ‘Means’ provide to A&F and explain?
- A&F pay Tax in the USA to the Federal Government as their HQ is in Ohio
- A&F outsource manufacturing to countries like Vietnam and China due to low wages and the ability to exploit child labour laws.
- A&F are able to manufacture and sell their products within the same trade bloc and therefore cut down on trade tariffs.
What does ‘Motive’ mean for A&F?
How they can control their costs and sell their products to make an overall profit.
What company revived A&F and is an example of Horizontal Integration?
Oshman Sporting Goods is the specific example of the company who revived A&F in the 1970s.
How does Economies of scale aide the brand of A&F?
The different brands such as Hollister, Abercrombie Kids and Gilly Hicks are examples of the different sub brands under A&F and also how they operate together and therefore bulk purchase and sell and therefore have overall reduced costs.
How many days can it take for A&F to now get goods to shops?
10 Days
Who do they subcontract to supply systems to gather vital company information?
GT Nexus
Name an example of how A&F have glocalised in the UAE?
The norm of the models to be clad and topless have disappeared in the UAE due to strict regulations and religious affairs, however the brand image and clothes are the exact same. This is an overall example of glocalisation in the UAE from A&F.
What does vertical integration mean?
Vertical integration is an arrangement in which the supply chain of a company is owned by that company
Who does A&F now typically cater for?
They sell niche clothes to the ‘youth market’ .
