Strategic operation management- case study Essay

Strategic operation management- case study - Essay Example ontracted to provide the garments was the need to specify the dyeing colors earlier, because they used dyed yarn to knit the garments rather than dyeing the garments after the knitting process was complete. (Stevensons:4). As a result, much of the dyeing business that Stevensons once carried out was shifted offshore, as a part of the overall garment manufacturing process. The positive consequences of off-shoring the garment production is the reduction in costs that was achieved. The average cost of dyeing and assembly of a garment by overseas suppliers was 35 pence less than the garment dyeing process. (Stevensons:6). This produced cost savings for the retailers. Moreover, the savings of 2 and a half pounds which the retailer could purportedly save of the 2 pounds and eighty five cents charged by Stevensons, required verification and working on with the ecru garment supplier, therefore the cost savings could not be verified. The problem of whether to assemble the knitted garment before or after dyeing was also eliminated by sending the garments to the offshore suppliers because the yarn itself was dyed before knitting the garment. Hence retailers were no longer subjected to the pressures of allocation of costs between the knitting factory and the finishing factory, and dealing with the uneven demand profile that was created by the need to assemble the garment before the dyeing process. One of the negative consequences for retailers was in the timing of the coloring decisions. Due to the variability in customer demand factors, retailers gained an advantage from being able to delay the coloring decision as long as possible, up to 4-5 weeks before actual sale and CV’s policy of completing the dyeing after the garment was assembled was helpful in making flexible color selections to respond appropriately to peaks in demand. . In order to be responsive to changing customer tastes, especially in the fashion and retail industries, the entire supply chain needs to be