One of the best examples of how a firm can use the supply chain to achieve a competitive advantage is Manyavar. Manyavar began its journey in 1999 with vision of revamping mens ethnic wear as a signature statement. The company is now one of the largest Indian ethnic retailers, with stores in almost all metro cities of India. Part of the reason for its success has been the way it has organised both supply and demand side of supply chain.

Although, Manyavar does manufacture much of its products itself, on its supply side company relies heavily on contractors. Contractors are small companies many of which is owned or part owned by its employees, who provide service to Manyavar factories by stitching and assembling Manyavars garments. These contractors in turn use service of sub-contractors to perform some of manufacturing tasks. Manyavars manufacturing operations gain two advantages from these. First, its production cost for ethnic wear are significantly below some of its competitors because small supply companies have lower cost themselves. Second, the arrangement allows Manyavar to absorb fluctuation in demand by adjusting its supply arrangement without itself feeling the full effect of demand fluctuations.

On the demand side of chain, Manyavar operates through a no of agents, each of whom are responsible for their own geographical area. These agents are responsible for developing stores in their area. Products are shipped from factory to individual stores where they are put directly into shelves. Manyavar stores have always been designed with large space so that garments, which typically are of bright and vibrant colours, can be stored in shop itself, adding colour and ambience to the appearance of store.

Because the variety is large, space availability of inventory in stores is limited, Store owners require that deliveries of garments are fast and dependable. Manyavar achieves this partly through their famous policy of manufacturing garments in parts and then assembly stitching when demand for particular size and style is evident.

This is slightly more expensive process than stitching directly but their supply side economics allows them to absorb the cost of extra flexibility, which in turn allows them to achieve relatively faster delivery to stores.

Questions:

Q. What according to you, are the specialties of the contractors of Manyavar?

loong answer req