Also not many retailers have the willingness to partner and be trustworthy to collaborate. There may also be possible manufacturer failures such as weather issues even closure. An integration supply chain may fail from businesses having different set goals and the cost to integrate means potential savings & benefits, that businesses might not want to commit to. The lack of flexibility from different businesses may be an issue as well as the lack of motivation to change-complacency. The popular retailer, H&M believe that working in a partnership is the best way to make a positive difference. The organisation's reliance on efficient, integrated systems for retail management in the major components of its supply chain, has played a huge part in enabling success in its stock control management.
The retail ability to offer affordably priced apparel is largely due to its strong supplier relationships and it’s manufacturing strategies to reducing its lead times by 15-20%
H&M doesn't have any factories of its own it utilises over 700 partner companies in more than 20 countries, they rely on a network of external suppliers to manage its buying and production. H&M purchases garments from around 750 suppliers, with 60% of production taking place in Asia and the rest mainly in Europe. The company depends on IT integration between the central national office and the production offices, this means the communication between the various departments takes place electronically, especially in design and product development, this means the company only has to place an order with one of its partner companies in the region that already have the necessary fabrics.
The very famous retailer, Arcadia don't operate or own any factories themselves. Arcadia’s goods are manufactured in 985 factories through 766 suppliers. They have strong working relationships with their international suppliers, 60% has been with them for over three years. This year Arcadia’s products were made in 49 countries worldwide, their top 5 countries for selling goods are China, Turkey, India and Bangladesh. American Apparel has integrated supply chain. With virtually every step of the process being in downtown LA, there vertically integrated business model allows them more flexibility and faster turnaround times than most in the market. From dyeing, cutting, and sewing to advertising and design, American Apparel do everything in-house and do not rely on outsourcing, like most larger brands. The reason its so cheap: american apparel is more expensive because its made in the USA, therefore it boost the US economy, doesn't use child labour, or pay there adult workers super low wages. Overall I believe that larger companies would use a integrated supply chain and outsource their products, this is because it is a lot cheaper using different suppliers. Using an integrated supply chain in a larger company means a lot of product will come quicker than they would in a non integrated supply chain.