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World Co.s

system can be

replicated at other

firms givensufficient

resources. WorldCo. usesadvanced

communicationsmethods, such as

online inventory

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2/9

management. Thes

e information

systemsrequire

highly trainedemployees and

sufficient capital. Afirm that is just

starting out, ordoes not have alot

of income may

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3/9

have difficulty

meeting these

requirements. Firm

s that deal inperishable goods

wouldnot be able tostore excess

amount of product(relating to the

undyed

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4/9

fabric). Companies

located outsideof

Japan would not be

able to use theexact same system,

at least not costeffectively.Conclusion:

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5/9

World Co.s

success in Japan

can be linked

directly to itseffective use of the

supplychain.Advanced

information andcommunication

methods keep

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6/9

factories in direct

contact with the

corporateoffice. Dy

namicdemand forecasting

allows for effectiveresponsiveness. Inv

entory managementandsupplier

negotiations

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7/9

minimize lead

times as well as

risk. The firms

overall ability toadapt to

Japanesefashionretail

characteristics hasallowed it to

achieve a turnover

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8/9

ratio of 5 (U.S. is

2.6) and

lead timesaveragin

g only 2 weeks(U.S. is 6

months). There ispotential for other

firms to follow intheir footsteps,yet

with many

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9/9

requirements and

adjustments to their

current situations