Supply Chain Management

Victoria’s Secret Supply Chain (Limited Brands) start from raw materials which is chosen by the designer and gets shipped from China that is cheaper for the company, but their raw material is high quality which satisfies the customer. Victoria’s Secret care about the customer satisfaction, they always look for the best quality in their raw material, to make the best out of it. Then the raw material gets processed at the factories which uses special equipments for Victoria’s Secret products, these equipments are highly qualified for specific uses to process the material. After the raw material gets process it becomes a product, the product is made in batches in different colors, sizes, designs, and cuts depending on the product design. Then the finished product gets retailed at Victoria’s Secret stores.

Their performance is determined depending on delivery, quality, time and cost of their products. Unfortunately, due to certain trademark, labeling, product content and embargo restrictions, Victoria’s Secret currently do not ship all products to all countries. If you have a restricted item in your bag you will receive a message during checkout that lists the restricted item along with specific instructions to remove the item from your shopping bag or change the shipping method or address if applicable. Shipping and handling charges are determined by the merchandise dollar amount of your order before any deductions. Not subject to special offers. Charges are calculated before taxes. All orders are subject to verification. If items are backordered, the total shipping and handling charges will be. Allocated proportionally and charged as the merchandise is shipped. Please note that the total shipping and handling charge will not increase. All backordered items ship out via Standard Delivery. Quality and cost of their products are usually at reasonable prices, they’re fairly descent and their quality is considered to be excellent depending on other retail stores. The Time of the delivery is usually 4-7 business days, which is fair.

The critical processes that make up the Victoria's Secret's supply chain are:
1) Product Design and Product Launch; 2) Merchandise Planning, Allocation and Forecasting; 3) Production & Sourcing; 4) Logistics; and 5) Store Operations. A design idea, from the point it is conceptualized to the point the product is delivered to the Victoria's Secret Stores, termed by the company as "Concept-To-Market", traverses through each of these processes comprising the supply chain. Figure 13 helps positions these various processes among departments within the organizational structure of the Victoria's Secret Stores organization.
On holidays like Black-Friday, the day after Thanksgiving, when many consumers begin Christmas shopping, the corporate head-office has to deal with huge volumes of hourly phone calls from individual stores for updates on sales figures. Another supply chain challenge from the merchandise planning viewpoint, is that the decision gates in Victoria's Secret's concept-to-market calendar are only planned for dropping styles out of line plan, and do not allow the flexibility of adding new styles closer to the selling season. When a style is dropped from the line plan, volume drops with it. And, at that point, the only alternative for the company is to produce another pre-existing category to fill the gap, if possible.

Limited Brand’s division Limited Logistics Services (LLS) is the $9.7 billion supply chain management operation. It supports the global supply chain service needs for Limited Brands brands. The company has supporting departments including Limited Customs Services, Product Quality and Regulatory Assurance, Strategic Procurement, Supply Chain Planning and Analysis, Operations Engineering, Facilities Services, Logistics Operations and Operations Support. The products are distributed to 4,600 stores and catalog customers. Columbus operations contain seven distribution and fulfillment centers and two shipping facilities. LLS serves all Limited Brands businesses - The Limited, Express, Victoria's Secret Stores, Victoria's Secret Beauty, Victoria's Secret Direct, Bath & Body Works, and The White Barn Candle Co. LLS is one of the best retail logistics industry with a balance of state-of-the-art technology and automation, and trained logistics employees.

LLS has set up some functions to manage the company's supply chain processes. LLS wants to concentrate on maximizing distribution and logistics efficiency, fulfilling with international trade and customs laws, ensuring regulatory compliance and facilitating product allocation and flow planning. All departments also have to make sure there are no weak links in the supply chain management. One of the important facts is LLS investing in its employees.

Victoria’s Secret’s supply chain management is well managed. They could; however, start supplying their stores with clothes which are offered through Internet and catalogues. Since manufactory is in Sri Lanka, it would be good if all stores could place an order and the products would be sent directly to the store from the manufactory. Victoria's Secret should keep using the same manufacturing process which is being used in present.