The Importance of Logistics in Dior Company

Christian Dior

Christian Dior is one of the major transportation companies that deal in several accessories. The products include clothes, jewelry, and perfumes and these are delivered to the consumers in their various locations. Based on the different seasons, the company releases products that are targeted to meet specific goals in the market. The festive seasons such as Christmas and Easter appear to have impetus in determining the demand curve and peak for the distribution services. As a result, the company uses ample techniques to ensure the products are availed to the consumers in a manner that keeps the company ahead of the rest. According to Forbes, the company ranks among the top ten largest transportation companies. The company has outlets all over the world despite being European at the onset. Dior is the name of the founder who was a designer from France. The company was founded in 1946; 11 years before the death of Dior.

Logistics and Supply Chain Management

The fashion industry is faced with the decision of trying to advance and adapt to the rapid changes that occur in terms of demand. In most instances, the propensity of a company to adjust to the high variability of the market dynamics offers an understanding of the success or failure that awaits the management. Moreover, the administration is expected to furnish all their stores with the trending products besides dealing with large amounts of information. The inventory has been a valuable tool for Dior Company since it has endeavored to establish a balance between the sales and the inventories. The unpredictability of the business environment is one of the factors that have constantly necessitated regular reviews of the marketing approaches utilized at the company. With advancement of time, the weather in the business environment also shifts and at times to the worst tempests. Procuring wise decisions and foreshadowing act as appropriate measures that mount effective competitive advantage against the unprepared competitors in the fashion realms.

Supply Chains Management

Supply chains management is a domain that encompasses enterprises that engage in various activities for the wellbeing of the entire transaction process. Considering that these agencies involved the process of advancing the trade that Dior Company is involved in is separate entities, it is necessary to establish a formidable communication network that ensures there is no breach of services or link breakdown. As a fashion and design firm, it is imperative to keep in touch with the suppliers of the materials and fabric so as to adequately meet the demands of the consumers. The dependability of Dior is revealed in the fact that it relies on the contemporary companies to supply the necessary materials for the designs and manufacture of the clothes and jewelry conformations (Murphy & Knemeyer, 2015). Moreover, the information dissipated by the competitors based on the state of the economy and the ultimate strategies have been valuable in the evaluation of the combat measures adopted by Dior. Despite being a French based company, the expansion of the stores to cover the global scope has propelled the management to seek the support of the hosting agencies in terms of penetrating the market and obtaining the necessary raw materials. Ideally, the cost of manufacture and transportation of the products from a central location could increase the cost of production and consequently narrow the profit margins. According to Murphy and Knemeyer (2015), communication avenues such as the internet and emails offer a means of augmenting communication and lifting up the face of logistics and supply chains management.

Differentiation

Differentiation is deemed as one of the elements that speeds the creation of a competitive advantage. However, the company concerned must be capable of establishing equilibrium between the differentiation process and the existing economic environment. Convenience is derived from the institution of parameters that balance out and work to ensure that the affairs of the company are catered for (Murphy & Knemeyer, 2015). Christian Dior Company ensures that the customers are able to access their website and place orders and their locations before the goods are distributed to them. The approximation of the manufacturing and the outlet stores of the company have offered reliability to the consumers and agencies that work with the company. In spite of the quest to invest in various countries, the scrutiny of the terms of trade such as taxes and ethical policies works to inform the strategic planning of the respective companies before the ultimate decision is made.

Recommendations

Christian Dior could have done well in its strategies of design and transportation but there remain areas that can still be improved. The logistics that have been applied for the good of the company and its affiliate agencies could be extended to the international level with specific customization to accommodate the different ethics and cultures (Murphy & Knemeyer, 2015). Moreover, it is necessary to establish a system of diversification where the products and brands are closely considered. The creation of a distinction between these entities suffers the propensity of the business to flourish. Most importantly, the company should work to improve predictability of the demand waves and prepare for the supplies and distribution through appropriate adjustment of the inventories.

Reference

Murphy, P. R., & Knemeyer, A. M. (2015). Contemporary Logistics (11th ed.). Pearson: Upper Saddle River, New Jersey.