Distribution Strategy at Mango

Antonio Pascual, director of Supply Chain at Mango, was reviewing the initial supply chain indicators for 2021 and reflecting over the struggles of recent months. In March 2020, the COVID-19 pandemic had triggered a global health crisis and caused a severe downturn that had been particularly difficult for fashion retailers, due to the forced closure of stores for many months. Fortunately, Mango had stood strong, with online sales growing significantly and somewhat mitigating the drop in revenues. Despite losses in fiscal year 2020, the company and the targets for 2021 were optimistic. The supply chain function had a central role to play in the upcoming year. As online sales kept growing, distribution facilities would need to adjust to the new reality. In fact, since 2019, Mango had already started the transformation of its distribution model to make it more suitable for online distribution. Past investments in logistics infrastructure, inventory traceability and process flexibility were starting to pay off. The road ahead was clear to Antonio: the more flexible the model, the better. This maxim had guided all recent decisions on the supply chain. However, the ambitious plans still lacked detail on how the supply chain should be designed and operated.

Collection: IESE (España)
Ref: OIT-33-E
Format: PDF
Number of pages: 15
Publication Date: Nov 29, 2023
Language: English

Description

Antonio Pascual, director of Supply Chain at Mango, was reviewing the initial supply chain indicators for 2021 and reflecting over the struggles of recent months. In March 2020, the COVID-19 pandemic had triggered a global health crisis and caused a severe downturn that had been particularly difficult for fashion retailers, due to the forced closure of stores for many months. Fortunately, Mango had stood strong, with online sales growing significantly and somewhat mitigating the drop in revenues. Despite losses in fiscal year 2020, the company and the targets for 2021 were optimistic. The supply chain function had a central role to play in the upcoming year. As online sales kept growing, distribution facilities would need to adjust to the new reality. In fact, since 2019, Mango had already started the transformation of its distribution model to make it more suitable for online distribution. Past investments in logistics infrastructure, inventory traceability and process flexibility were starting to pay off. The road ahead was clear to Antonio: the more flexible the model, the better. This maxim had guided all recent decisions on the supply chain. However, the ambitious plans still lacked detail on how the supply chain should be designed and operated.
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Year: 2021
Geographic Setting: España

Distribution Strategy at Mango

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"Distribution Strategy at Mango"