Benetton’s production system was redesigned in 2005, evolving from an organization based on divisions (e.g. wool and cotton) to a structure based on Service Units, such as planning and quality control.
The new system is more efficient, flexible, and integrated, and makes it possible to optimize quality, service, and product delivery times, while being able to sustain desired growth in production over the coming years. In 2005, clothing production increased by as much as 3 million articles over the previous year.
This system relies on a “network of skills”, which, leverages the best industrial capabilities available internationally, into which Benetton know-how is introduced, in each case using the most appropriate production techniques. In a landscape of increasing competition, such a system ensures rapid response times, product quality, and customer satisfaction. Benetton’s control and research units, which govern the entire system, operate in eastern Europe, in the Mediterranean - led by Tunisia and Turkey - and in transitional Asian markets, such as China and India.
In terms of logistics, in 2004, the new Hong Kong hub became fully operational and, together with the European hub, allows for more rapid response times and better customer service in China, Japan, and the Far East in general, as well as in the U.S. Other such units throughout the world are being studied and will consolidate the transition from a centralized system to a new model based on satellite logistics.
“In 2005, Benetton celebrated the fifteenth anniversary of its presence in India, which represents a significant competitive
advantage in a market rich in history and tradition, but which is, at the same time, strategic to the development of business in
Asia. The production of cotton clothing, shirts, accessories, and footwear by our production network, which includes the facilities
in Gurgaon (Haryana) just outside of Delhi, has enabled us to continue the strong growth of Benetton India (wholly owned
by Benetton Group since December 2004), which boosted sales by 70 percent in 2005. The more than 50 shops currently in
business in the country are expected to double over the next three years.”
Gagan Singh, managing director of Benetton India