Desigual’s multi-stranded approach to omni-channel

This is an excerpt of the original article. It was written for the May-June 2016 edition of Supply Chain Management Review. The full article is available to current subscribers.

May-June 2016

The procurement function is at an inflection point.” So begins “The reinvention of procurement," an article by Jonathan Hughes and Danny Ertel, partners at the Boston-based consulting firm Vantage Partners. The authors argue that while many leading companies have transformed their procurement organizations into a linchpin of their enterprise strategy, far too many others remain trapped by procurement models that are out of date in today’s fastpaced economy, where the acquisition of innovation, collaboration, services and solutions is more important than transactions based on the lowest cost per unit. Reinvention is a fitting theme for…

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Transitioning to an omni-channel supply chain undoubtedly brings many challenges for retailers. However, omni-channel is also a major source of supply chain innovation (see Figure 1). The journey involves multiple changes that are forcing companies to rethink the way they design, build, implement, and manage global supply chains, as well as how they relate to key supply chain players.

Fashion company Desigual is deep into its migration to an omni-channel model. The transition is on track for a successful completion and the strategy has already spawned a number of innovative approaches that will benefit its business. These include two areas of fundamental change. One concerns operational activities such as inventory management, as well as broad logistics transformations that are making the company more flexible and agile. The second area pertains to redefining Desigual’s customer relationships, again, under the premise of leveraging the company’s unique brand.

Distinctive style

Desigual was created in Barcelona, Spain, in 1984 by entrepreneur Thomas Meyer. The company now has nearly 5,000 employees, and in 2015 reported annual sales of 933 million euros.

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