Supply Chain Issues: Though Uniqlo aspires to be a global player, the company is facing huge issues in scaling up their supply chain to reach out to global markets. Are you sure you want to submit this vote? Supply Chain Network of Fast Retailing Co.(UNIQLO) 1. The Takumi Team is a group of engineers with over 30 years experience in the Japanese textile industry. According to Clean Clothes, workers report that the arrival of the Japanese brand led to high targets, significant overtime and … Millions of dollars were still owed to the mainly women workers, many of who had been employed at Jaba Garmindo for over a decade. Uniqlo, owned by Fast Retailing, is Japan’s largest clothing business. Uniqlo today came under fire over claims it uses factories that have allegedly denied the rights of staff making the brand’s clothes. The ongoing dispute has now been going on for four years, with workers fighting US$5.5m they are owed in lost wages and unpaid severance. Uniqlo is working hard to establish its new supply-chain system based on digitalization, but its overarching strategy to improve the global distribution networks remains unclear. This can be effectively done by developing a timeline of the main issues and of the events in the case study. However Uniqlo’ parent company Fast Retailing claims it has no obligation to compensate the workers, claiming it cut business ties with PT Jaba Garmindo in October 2014 due to quality issues and it was several months after that the company went under. Clothing varieties and new styles both require apparel enterprises to respond quickly to market demand. Just as a style becomes widely accepted, … The brand traces most of its supply chain including all of the final stage, however, doesn’t publicly list all of its suppliers. In bankruptcy proceedings Jaba Garmindo owners cited the practices of their buyers as a significant factor in the factories’ closure. War on Want believes some Artigas employees are still awaiting compensation, while workers at Zhong Yin have not been offered back pay and continues to campaign on their behalf. Need Help with Uniqlo A Supply Chain Going Global Case Study Analysis & Solution? JIT, however, allows for forecasting errors. In April 2015 workers at the Jaba Garmindo factory in Indomesia were told their employer had gone bankrupt and their factory was closing. The row has now been resolved and the affected employees are set to be rehired. Now that its global sales consists 45% of its total sales, Uniqlo needs to articulate how to compete with other giant retailers such as Amazon in terms of delivery to customers. Uniqlo was a major buyer at Jaba Garmindo in the three years prior to its closure, representing almost 40 per cent of production in 2014. The company said it suspended production in Zhong Yin as a result of dispute with the workers’ union. Another way of understanding the external environment of the firm in Uniqlo: A Supply Chain Going Global is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. Uniqlo today came under fire over claims it uses factories that have allegedly denied the rights of staff making the brand’s clothes. Dive Brief: Fast Retailing, the parent company of Japanese retailer Uniqlo, has released a list of 146 suppliers along with its 2017 Sustainability Report, Sourcing Journal reported Tuesday.