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Supply chain management in the luxury industry: A first classification of companies and their strategies

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  • Caniato, Federico
  • Caridi, Maria
  • Castelli, Cecilia
  • Golini, Ruggero

Abstract

This paper aims at analysing the supply management strategies in the luxury industry in order to find out (1) whether different clusters of companies could be identified within the luxury industry, on the base of a set of contingent variables derived from previous research, and (2) which supply chain strategy is currently applied within each cluster. Case study methodology is used. A sample of 15 Italian luxury companies, belonging to different industrial sectors, was taken into account. On the basis of five classification variables (company size, selling volume, product complexity, product fashionableness and brand reputation) four clusters are identified; these clusters present differences in terms of Supply Chain strategy, as well as in terms of practices for managing manufacturing, sourcing and distribution processes.

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  • Caniato, Federico & Caridi, Maria & Castelli, Cecilia & Golini, Ruggero, 2011. "Supply chain management in the luxury industry: A first classification of companies and their strategies," International Journal of Production Economics, Elsevier, vol. 133(2), pages 622-633, October.
    • Handle: RePEc:eee:proeco:v:133:y:2011:i:2:p:622-633
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    1. Demeter, Krisztina & Gelei, Andrea & Jenei, Istvan, 2006. "The effect of strategy on supply chain configuration and management practices on the basis of two supply chains in the Hungarian automotive industry," International Journal of Production Economics, Elsevier, vol. 104(2), pages 555-570, December.
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    5. Brun, Alessandro & Caniato, Federico & Caridi, Maria & Castelli, Cecilia & Miragliotta, Giovanni & Ronchi, Stefano & Sianesi, Andrea & Spina, Gianluca, 2008. "Logistics and supply chain management in luxury fashion retail: Empirical investigation of Italian firms," International Journal of Production Economics, Elsevier, vol. 114(2), pages 554-570, August.
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    1. Jean Respen & Nicolas Zufferey & Philippe Wieser, 2017. "Three-level inventory deployment for a luxury watch company facing various perturbations," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(10), pages 1195-1210, October.
    2. Macchion, Laura & Moretto, Antonella & Caniato, Federico & Caridi, Maria & Danese, Pamela & Vinelli, Andrea, 2015. "Production and supply network strategies within the fashion industry," International Journal of Production Economics, Elsevier, vol. 163(C), pages 173-188.
    3. Green, Kenneth W. & Inman, R.Anthony & Birou, Laura M. & Whitten, Dwayne, 2014. "Total JIT (T-JIT) and its impact on supply chain competency and organizational performance," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 125-135.
    4. Pamela K. Robinson & Linda Hsieh, 2016. "Reshoring: a strategic renewal of luxury clothing supply chains," Operations Management Research, Springer, vol. 9(3), pages 89-101, December.
    5. Cagliano, Anna Corinna & Mustafa, Muhammad Salman & Rafele, Carlo & Zenezini, Giovanni, 2014. "Logistics Performance Measurement for Sustainability in the Fast Fashion Industry," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Next Generation Supply Chains: Trends and Opportunities. Proceedings of the Hamburg International Conference of Logistics (HICL), Vol. 18, volume 18, pages 113-135, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    6. Pantano, Eleonora & Passavanti, Rosanna & Priporas, Constantinos-Vasilios & Verteramo, Saverino, 2018. "To what extent luxury retailing can be smart?," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 94-100.
    7. Młody Michał & Stępień Beata, 2020. "Principles of reshoring development in luxury goods sector," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(2), pages 140-158, June.
    8. Baker, Jeff & Ashill, Nick & Amer, Noha & Diab, Ekram, 2018. "The internet dilemma: An exploratory study of luxury firms’ usage of internet-based technologies," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 37-47.
    9. Wong, Hartanto & Lesmono, Dharma, 2013. "On the evaluation of product customization strategies in a vertically differentiated market," International Journal of Production Economics, Elsevier, vol. 144(1), pages 105-117.
    10. Asian, Sobhan & Wang, Jian & Dickson, Geoff, 2020. "Trade disruptions, behavioral biases, and social influences: Can luxury sporting goods supply chains be immunized?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    11. Hakan Karaosman & Gustavo Morales-Alonso & Alessandro Brun, 2016. "From a Systematic Literature Review to a Classification Framework: Sustainability Integration in Fashion Operations," Sustainability, MDPI, vol. 9(1), pages 1-19, December.
    12. Hakan Karaosman & Gustavo Morales-Alonso & Mercedes Grijalvo, 2015. "Consumers’ responses to CSR in a cross-cultural setting," Cogent Business & Management, Taylor & Francis Journals, vol. 2(1), pages 1052916-105, December.
    13. Młody Michał & Stępień Beata, 2020. "Principles of reshoring development in luxury goods sector," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(2), pages 140-158, June.
    14. May McMaster & Charlie Nettleton & Christeen Tom & Belanda Xu & Cheng Cao & Ping Qiao, 2020. "Risk Management: Rethinking Fashion Supply Chain Management for Multinational Corporations in Light of the COVID-19 Outbreak," JRFM, MDPI, vol. 13(8), pages 1-16, August.
    15. Shen, Bin & Minner, Stefan & Chan, Hau-Ling & Brun, Alessandro, 2020. "Logistics and supply chain management in the luxury industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    16. Karaosman, Hakan & Perry, Patsy & Brun, Alessandro & Morales-Alonso, Gustavo, 2020. "Behind the runway: Extending sustainability in luxury fashion supply chains," Journal of Business Research, Elsevier, vol. 117(C), pages 652-663.
    17. Gornostaeva, Galina, 2023. "The development of digital commerce in the fashion industry: The typology of emerging designers in London," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).

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