The crisis of La Chapelle’s operations - a comparative analysis with HLA

Abstract

Supply chain management(SCM) includes five major parameters, customer satisfaction, cash, cost, sustainability and asset. Customer satisfaction, cash and cost are the most significant factors in the fast-fashion industry. So, how does SCM affect fast-fashion companies to achieve great success? In this case, two representative companies (La Chapelle and HLA) are selected to be compared to present the influence of SCM. The study results reveal that the decline of products’ customer satisfaction directly leads to a dip in operating income. Too much money is wasted, increasing costs. Consequently, La Chapelle has to face the lack of cash and a large debt. Based on the discussions, some appropriate recommendations will be made to improve these problems in three aspects, which are beneficial to solve La Chapelle’s crisis and reducing the possibility of business failure.