Moreover, to maintain solid relationship with suppliers, companies usually place orders of one product with only one supplier, or place very large orders with one supplier, which makes it even harder for H&M to control the lead-time and responds quickly to new market trends. "If one supplier has too many orders then, it is better to place the other orders with the different suppliers. ... H&M depends completely on outside suppliers to manufacture their products and therefore outsourcing can be a risk to H&M's reputation. H&M outsources to about 700 independent suppliers around the wo...

• Word Count: 3063
• Approx Pages: 12
• Grade Level: Undergraduate

The first factor is the bargaining power suppliers have on any company. Domination by a few large suppliers is a variable any company must add into their equation for success in order to keep their prices down. ... The relationship retailers have with these powerful suppliers can potentially reduce strategic options for the organization. Wal-Mart has in place a distribution system that will allow them to bypass a lot of these variables and give then a competitive edge. ... They are planning on sharing their distribution resources that are now in place in their general merchandise stores, a...

• Word Count: 850
• Approx Pages: 3
• Grade Level: Undergraduate