Skinny or sustainable? A case on GT Nexus and Levi Strauss

yoshdrp    February 23, 2015

Title of Post: Skinny or sustainable? A case on GT Nexus and Levi Strauss


Organisation Name: Levi Strauss

Industry: Garment/Retail

Name of contact if available: N/A

Web References:  Levi Strauss History

GT Nexus News 

Supply Chain 247 

Supply Chain Partnerships are Win-Win

What is Supply Chain Management?

In simple terms, it refers to all the processes that define the journey of a product from the source to the user. The goal is to have superior coordination within this chain, in order to produce competition among particular stakeholders. This allows for cost reduction and an enhanced competitive advantage.

How does social media fit in?

The purpose of social media is to provide a resilient platform that allows for collaboration. Through information sharing and decision synchronization, sustainable goal congruence is achieved. Levi Strauss utilizes GT Nexus as the platform to effectively coordinate its supply chain.

Who is Levi Strauss?

As one of the first companies to manufacture blue jeans, Levi Strauss exists in a competitive environment. With such historic roots, the company must continue to fashion a high quality product. As a global brand it has a global responsibility to its consumer base. With this comes a shared responsibility to facilitate a more sustainable supply chain. Listen to the history of this “jeanic empire” in just a minute and 29 seconds.

Source: Youtube

Who is GT Nexus?


How will GT Nexus Help?

What strategy is Levi Strauss employing?

Levi Strauss considered promoting its own quality of jeans by managing its relationships with suppliers. The company did this by sharing the power and spreading the benefits to small suppliers. This strategic procurement allowed costs to remain low and induce an environment of collaboration. This would mean that larger businesses would establish partnerships with its smaller competitive suppliers. The result was an environment of learning and enhanced quality. This is how Levi Strauss would change the environment of supply chain management.

Specifically the company would collaborate with the private arm of the World Bank; the International Finance Corporation (IFC). The purpose was to provide stable, less onerous loans to suppliers in the local market with the objective of encouraging best practices in terms of working conditions. GT Nexus would provide the platform through which all stakeholders would remain aware; that is aware of where shipments and payments stand. It is important to recognize the role GT Nexus plays as the medium where change may take place.

Lessons Learnt?

As a global brand, Levi Strauss attempts to create radical changes in supply chain management. As a globally established brand it has both the reach and credibility to introduce such change in to its supply chain. Consider your organizational dimensions and partners; strategically partner in order to produce mutually beneficial supply chain characteristics.

Incorporating social media as a resource in the supply chain management framework requires a champion; to spearhead the endeavor. Consider executive sponsorship and facilitation. Consider the fact that not all organizational cultures have the same perspectives regarding the use of social media in supply chain management. Consider running educational workshops or awareness campaigns internally to facilitate such a change. Consider partnering with an organization that would allow for a greater social impact and build sustainability into the equation as well.

With climate change and the potential for emergencies on the rise as a result, the need for quality supply chain management is high. Social media is a resource that would greatly contribute to the success of such an endeavor. It simply requires the right environment, the right people and the right perspective…

Submitted By: Yoshi Perera, Public Health Professional

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If you have concerns as to the accuracy of anything posted on this site please send your concerns to Peter Carr, Programme Director, Social Media for Business Performance.