8 Key Processes of Supply Chain Management
Explore UNIQLO Supply Chain Management Map Overview.
1. Customer Relationship Management
A. Online Customer Satisfaction Surveys
UNIQLO employs online customer satisfaction surveys to gauge various factors such as store staff communication, conduct, and checkout speed. These surveys, accessible to customers through post-purchase prompts, provide valuable opinions and feedback, contributing to the measurement of customer satisfaction.
B. Friendly Customer Centers
With customer service centers established globally, UNIQLO facilitates feedback channels through email, telephone, chat support, and more. This ensures rapid response and communication of customer comments to relevant departments and stores, focusing on product, online, and brick-and-mortar store-related feedback.
C. Using Data to Create the Best Products and Services for Customers
UNIQLO leverages data obtained from stores, e-commerce, and customer service centers to enhance products and services continually. This feedback-driven approach, showcased on the UNIQLO website, exemplifies the company’s commitment to incorporating customer insights into the marketing strategy, reducing inventory burdens, and optimizing promotions.
2. Customer Service Management
A. Customer Center
To gather feedback for product, store, and service improvement, UNIQLO provides customer centers accessible through email, telephone, chat support, and other channels on their websites and stores.
B. Experiential and In-store Training
UNIQLO emphasizes a consistent retail experience worldwide by conducting training programs for staff, ensuring standardized interactions with customers, credit card transactions, and welcoming customers across all locations.
3. Product Development
A. Planning and Supply Procurement
Product development initiates with managerial planning and material procurement, involving negotiations with fabric manufacturers for cost-effective solutions. UNIQLO’s sourcing from reputable companies like Kaihara Corporation and Toray Industries ensures quality raw materials.
B. Product Testing
Following planning, designs are sent to the production departments for product sampling. The Takumi team and production department collaborate, exchanging samples until desired product quality is achieved.
C. Product Manufacturing
The production department oversees the manufacturing process, collaborating with factories worldwide, including those in China, Bangladesh, Cambodia, and Indonesia. Inventory control ensures efficient production schedules and monitors product quality.
D. Product Delivering
Before mass production, third-party pre-testing of materials ensures quality. The finished products undergo a final inspection before being delivered to online and physical stores by warehouses.
E. Working with CRM
Post-purchase, CRM continues with customer feedback loops to identify potential developments, new product ideas, and improvements. This data flow from customers to stores and, eventually, to the production department ensures continuous refinement.
4. Supplier Relationship Management
A. Supplier Relationship
Uniqlo nurtures strong relationships with suppliers, emphasizing communication, effective manufacturing flow management, and mutual profitability. For example, their relationship with denim supplier Kaihara Corporation exemplifies collaboration for mutual improvement.
B. Communication
Clear communication between Uniqlo and suppliers fosters longevity and efficiency. The ability to provide feedback improves product quality, enhancing Uniqlo’s efficiency and attracting customer loyalty.
C. Effective Manufacturing Flow Management
Maintaining a positive relationship with suppliers ensures a streamlined flow of products, vital for a renowned company like Uniqlo, known for high-quality apparel.
D. Optimal Procurement Processes
A solid relationship with suppliers reduces availability problems, delays, and quality issues, resulting in high-quality products for customers and long-term cost savings.
5. Order Fulfillment
A. Manufacturing
UNIQLO outsources the production of almost all its products to partner factories in Asia, fostering trust through years of collaboration.
B. Logistics
Partnering with the Daiwa House Group and Accenture, UNIQLO builds logistic centers and enhances global distribution networks for efficient order fulfillment.
6. Demand Management
A. Modeling
UNIQLO designs products based on customer requests, incorporating new and emerging needs identified through collaboration between research and development, merchandising, marketing, and materials development teams.
B. Forecasting
Utilizing RFID technology on products allows accurate daily sales tracking, aiding in predicting demand, pricing, and supply requirements.
C. Demand Planning
UNIQLO’s philosophy of “making for all” focuses on simplicity, essentials, and popularity, ensuring a longer product life cycle. Demand planning involves creating high-quality, affordable products by eliminating middlemen and overseeing production.
7. Manufacturing Flow Management
A. Research and Development
Research and development respond to customer requests, identifying new needs and conducting design meetings to refine samples.
B. Merchandising
Working closely with various departments, the merchandising team decides on product lineups, volumes, and handles product launches throughout the year.
C. Development and Procurement of Materials
Direct negotiations with manufacturers worldwide allow UNIQLO to secure stable, high-volume supplies of high-quality materials at lower costs, contributing to improved functionality and quality.
D. Production Network
Outsourcing production to factories across Asia, UNIQLO ensures regular monitoring programs for ethical practices.
E. Production Department
The production department addresses and implements improvements based on customer feedback.
F. Inventory Control
Optimal inventory levels are maintained by the Inventory Control department, coordinating with merchandisers and marketing to reduce residual inventory through strategic sales promotions.
G. Marketing
Seasonal advertising campaigns highlight UNIQLO’s popular products on various media channels, providing information on limited-time discounts through the app, email, social media, and flyers.