H&M Tries on Supply Chain Improvements

The world’s second-largest fashion company, Sweden’s Hennes & Mauritz (H&M), says it will increase supply chain investments and continue cost control measures to address slow growth in 2017, and keep pace with e-commerce rivals.

After a supply chain reorganization in 2016, H&M’s new focus includes investing in data analytics and intelligence to enhance retail assortment planning and sales. It will also invest in technology to expand cloud computing, RFID, and 3-D printing.

The retailer’s supply chain processes had remained the same while the world changed, notes H&M Chief Executive Karl-Johan Persson, adding that H&M will "definitely" move some production closer to end markets while keeping an eye on profitability. "The company will also seek more flexibility with suppliers, so it needs to lower inventories and boost spending to make the supply chain more flexible," he says.