2.

4 DESIGN Up until 2000 Benetton used to launch two main seasonal collection per year (springsummer and autumn-winter), which did not effectively meet customers satisfaction by providing the latest fashion trends. Benetton reduced the number of pieces by 30% in the standard collections and introduced new flash collections during the season according to the latest fashion trends and customer preferences. The products re-design also involved a streamlining of brands by eliminating some previous, and a rationalization of collections, now divided by age in four groups (men, women, children and expectant mothers). A staff of 300 designers from all over the world creates the collections for the Group's global brand United Colors of Benetton, the glamour oriented Sisley and the contemporary brand Playlife. The work of the design team begins with research. Its designers travel the world capturing new trends and ideas. Following the research process, the themes and look of the collections are designed: color, fabrics and quality materials characterize its apparel and accessories. While the dyeing area conceives the colors, the product department hand-draws the entire collections, turned into sketches from the most sophisticated graphics programs. Finally, creates the samples utilizing the fabrics selected. The design center of Ponzano Veneto, which employs 250 designers, brings together a sophisticated and diversified set of abilities, representing different design and fashion cultures. But at the same time it is strictly divided into three design sectors: 50 designers, or "product-men", work on the product with a commercial outlook; another group is concerned with researching fabrics; and a third is responsible for graphics. After the design process, model makers draw all the pieces of each item of clothing on the computer, and prototypists are then able to realize the model in any fabric, ensuring both its industrial feasibility and the firm function "times and methods", thus completing the so called "board". The fabric then arrives at the departments, which produce the sample books, about 80-100, to be showed to the sales force. Product development comprises as well any machine modifications required by the drawings. These challenges are met jointly by engineers and designers. The product department is the link between all the areas involved in the development, manufacture and distribution of its collections. In addition, it cooperates with research centers, universities and laboratories for continuous innovation and the development of new processes.

2.5 DUAL SUPPLY CHAIN The Industrial set-up has developed in order to offer high quality products at accessible prices, satisfying the needs of an ever more demanding and sophisticated consumer, and increase the relevance of the time to market offering. The fulfillment of these successful key factors have been achieved through the introduction of a "double supply chain", a system of industrial operations that balances efficiency and speed: 1. Sequential Supply Chain: a better calibrated and more efficient system, based on a logical sequence of activities for minimizing costs and optimizing efficiency. Integrated Planning System, a more rapid system with better response capabilities, optimizing, in parallel, the activities of R&D, product design, production and sales. For standard garments delivered before the beginning of the season, Benetton uses a sequential dual supply chain based on push-demand. During the season, flash collections are conversely delivered using an integrated pull-demand focused supply chain, hence responding to customer latest feedbacks. This system trough a more efficient logical flow of activities and an integrated planning system allows reduced costs and lead time. It maintains its core in Italy for the most strategic activities, like design and planning, while looks outside for production/logistic efficiency and cost control. Production thus responds quickly and effectively to the needs of a market-driven company, with modern scheduling and planning systems that are capable of managing complex situations associated with medium and long-term supply.