SCM

Victoria’s Secret's Supply Chain starts from raw materials, which are chosen by the designer and get shipped from China.  The raw materials get processed at the factories, which use special machines for Victoria’s Secret products.  The machines are highly qualified for specific use to process the materials. After the raw materials get processed, they become a product. The product is made in batches of different colors, sizes, designs, and cuts depending on the product design. Then, the finished product gets retailed at Victoria’s Secret stores and on their website.  

Unfortunately, due to certain trademark, labeling, product content and embargo restrictions, Victoria’s Secret currently does 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.  All backordered items ship out via Standard Delivery. Delivery is usually 4-7 business days.  

The critical processes that make up 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. 

Limited Brand’s division Limited Logistics Services (LLS) is a $9.7 billion supply chain management operation. It supports the global supply chain service needs for Limited 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 their supply chain management. One of the important facts is LLS investing in its employees.

CRM

Victoria's Secret currently does 10 things to Optimize CRM.  The first thing they do is trend the long term control group.  This allows them to observe natural baseline shipping patterns.  Those patterns help inform their contact strategy for a season.  When there is lower baseline shopping, there is more CRM.  Next, Victoria's Secret is increasing the size of their Database.  They are adding cell phone matching capabilities to identify more customers at POS.  They are also investigating media deals that involve sharing of names.  Next, they are Considering Alternatives Channels of Delivery.  They want to test inserting their direct mail piece on top of newspaper deliveries, adding inserts in existing Victoria's Secret catalogs, use concierges to deliver their CRM pieces in high tourist areas and have bulk drops.  They are also increasing their number of email contacts and are using bounce backs since they are a less expensive delivery mechanism that targets high quantities of existing customers, including those not captured on their database. Fourth, they are focusing on current customers with minimal spending on lapsed and prospecting.  They want to retain their high quality customers by focusing on their Angel Credit Card customers, while adding new benefits and double and triple point events.  Fifth, they are rewarding loyalty.  They sent VS branded gifts ($40 value) to their best customers in the past holiday season.  Next, they are researching the customer.  They are undertaking a 3-month study to help better understand what is in their customers' and non-customers' lingerie drawers and what influences her to purchase certain products. Seventh, they are over-hauling the customer contact strategy.  They want to re-build their models, monitor customer cycle time and add more contacts per customer.  Eighth, they want to get more aggressive with offers.  They want to add more beauty samples to some of their gift with purchases and their gift with purchase will be larger.  They also want to feature value messaging on the creative side.  They are calling out special in-store deals that are featured at a great price in addition to their "champion offers."  Lastly, they are looking for creative sources of funding.  They are going to look at partnerships, list exchanges and use excess product for gifts with purchase events.