Sunday, September 28, 2008

Process Selection

Victoria's Secret product flow is the Batch Flow. The advantage of batch production is that Victoria's Secret has a variety of products rather than just one type; therefore it gives customer a larger choice and a larger possibility of sales. Another advantage is that this company is reducing its risk on simply concentrating in one product; it produces a variety of different ones of the same type. However, the disadvantage is the setup time required to change from one product to the other. Victoria's Secret is a company, which produces medium variety and volume depending on their customers needs.

Victoria's Secret customer order process is Make To Stock (MTS), which provides powerful production solutions for handling recipes, sequencing, batch balancing, and environmental information. In addition, the MTS gives you a strong competitive advantage through more efficient production planning, on-time deliveries, and higher product quality. Victoria's Secret products are customized in different colors and sizes. And is the producer who makes the designs, not their customers. Also, the MTS give fast service to the customers because all the products are available at the stores the only thing that customer has top do is go to the store and choose what ever they like and purchase it.

Victoria's Secret falls into the process of low volume multiple products characteristics matrix where the product is produced in low volume with multiple varieties.

Victoria's Secret process selection is influenced by many factors, however, we are going to focus in three main factors that influence process selection. Market conditions, is one factor, like characteristic of a market into which a firm is entering level of competitiveness and the market's growth rate. Price Competition, is a second factor, as everybody knows Victoria's Secret has good competitors like Fruit of the Loom, Hanes, Calvin Klein, Betsy Johnson and department stores that offers a variety of lingerie products from different brands. Last but not least, are technology, labor supply and cost.

Victoria’s Secret, do not customize their products for their customers because they carry and distribute different product such as Victoria’s Secret intimates, Pink, Beauty Products, that have different styles, color, sizes, scene, etc. that gives customers a variety to satisfy customers’ want sand needs. That is why Victoria’s Secret does not adapt mass customization. Nevertheless, at the beginning of March 2008, Victoria’s Secret introduces a new strategy for mass customization; a bra that is customizes for every client “ The new Biofit Uplift Bra...you’ll think its custom made.” Televisions ad, and direct mail were all about of “ a bra so revolutionary, you will think it was made for you. Your shape, your cup size, coming on March 4th”.The website asserts that the bra provides lift based on individual cup sizes, so as the cup size increases, the padding decreases. Victoria’s Secret has built the custom-made fit value proposition into a compelling ad campaign

Tuesday, September 23, 2008

Inventory Management


Victoria's Secret Stores makes inventory every 6 months and it hires a datawarehouse to do its inventory. Today, Victoria's Secret is using MicroStrategy's DSS Agent a relational On-Line Analytical Processing (OLAP) server optimized for very large database (VLDB) analysis. This system help the company to manage inventory, analyze market demand and gather information about the sales and inventory levels for each item in each store. In addition, using DSS Agent, reduce the time and personnel required to perform ad hoc analysis.

DSS Agent has enabled Victoria's Secret to reduce out-of-stock instances on selected items from 20% to 5%, by tracking daily movement figures and minimizing inventory shortfalls. DSS Agent is providing Victoria's Secret with a better understanding of critical information such as size selling patterns and how they vary by geography. For example, using DSS Agent, merchandisers were able to determine that Miami-area consumers buy ivory bras 10 times more often than black bras and that in New York, demand for size 32 bras is 20 times higher than the company average. By improving the in-stock situation, Victoria's Secret avoids lost sales and more efficiently allocates its inventory to its stores

Tuesday, September 9, 2008

Company Informantion


Victoria Secrets was founded in San Francisco, California by Roy Raymond in 1977. In 1982, Victoria Secret was taken over by the Limited Brands Company (NYSE:LTD). Since its founding days, it has grown to 1003 stores in the United States. Victoria's Secret is an American Retailer known for women's wear, lingerie and beauty products. The company highly recognized for its fashion shows and catalogs, which feature top fashion models. Victoria Secret has grown to the top by providing their products and services through stores, online catalogs and catalogs.