Supply Chain Coordination and the Power Structure of a Modern Retail Network: Case Finnish Clothing and Textile Industry

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School of Business | Master's thesis
Ask about the availability of the thesis by sending email to the Aalto University Learning Centre oppimiskeskus@aalto.fi

Date

2018

Major/Subject

Mcode

Degree programme

Information and Service Management (ISM)

Language

en

Pages

70

Series

Abstract

This research studied supply chain coordination in a clothing and textile industry. Purpose of the study was to contribute in generating insights about how the downstream part of the fashion supply chain is evolving in a modern market landscape where the large e-retailers are gaining momentum. Moreover, this thesis aimed at showing how small-and-medium sizes brands are addressing this transformation through coordination mechanisms. Three Finnish clothing brands, Makia, Reima and Saint Vacant were interviewed as part of a multiple-case study. A theoretical framework was employed early on to direct the study and a literature review on previous research on supply chain coordination and fashion supply chain was conducted. Description of methodology and selection criteria for case companies was then introduced followed by secondary research on Finnish clothing and textile industry together with case introductions. Empirical findings were then outlined and discussed with the help of the framework and emerging themes. Finally, this thesis aims to structure recommendations and managerial implications for the use of fashion businesses both in Finland and in the rest of the world. The nature of this multiple-case study was exploratory so the results from the study were not evident from the beginning. The results showed that SMEs are not in charge of coordinating the supply chain when dealing with large retailers, but instead the supply chain is controlled afar by the retailers. Results also showed that Finnish clothing brands do use all coordination mechanisms, but their emphasis is different than earlier literature might have predicted. As the most important managerial implications, this thesis structured listening to the consumers through information sharing, establishing new partnerships with 3rd party logistics operators and using trade agents for international growth. This study proved the strength of the used framework and found emerging themes from the phenomenon. It is however limited by the small sample size, so the results have to be generalized carefully.

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Thesis advisor

Kuula, Markku

Keywords

supply chain coordination, fashion supply chain, brand-retailer relationship, coordination mechanisms, retail

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