Zara supply chain case

Strategy binds the organization to the peripheral world. The company should rely on the existing solid distribution network to increase its online presences by shipping products directly to customers.

Their interest is retained by regularly updating and varying of stocks on shelves. The new structure of organization will has less management, which means one leader only and middle management divide by many groups and each group has more specialist.

While this requires trust-building and commitment from both parties in each relationship, the result is more than worthwhile. Even though usually Zara stores are spacious but the stock is displayed in limited quantity.

Techniques for analyzing industries and competitors. But instead of lessening their stocks, Dell stresses on high speed delivery of products. SCM believes that value addition Zara supply chain case customer service is important to gain competitive advantage Harrison and Van Hoek, This has enabled the company in operating effectively and becoming a favorite brand for most consumers.

Retrieved February 18,from: Products of Zara are shipped from the manufacturing site in Spain through Corunna depot or Zara Logistica. Every staff member from the procurement to the retail department has ample knowledge of the requirements and how each situation should be addressed. This kind of strategy gives customers a sense of originality and exclusivity.

The strategy of lower quantity is equal to limited supply is equal to compulsion purchase. New designs are stocked in the different stores within 15 days thus allowing for the company to respond to customer demands in time Stevenson, Among the key success factors in this supply chain is: Risks are involved like uncertainty, insecurity, shortage of goods and delay in delivery.

This sort of physical and organisational proximity of all three channels allows increasing productivitythe speed of new customer desired designs and the whole design process and the quality of that process.

The short cycle time requires less working intensive of new merchandise and allows Zara committing to the bulk of production line for a season later than the peers.

All these products are outsourced to around suppliers to improve responsiveness and efficiency, and also not to be dependent on a single source.

By identifying a trend as it was happening, they were able to make their designs and have the clothes in the store within 30 days — they were able to produce clothing that fit the trend of the moment.

Therefore, Zara need to encourage the design group to create the product combine with the unique ashion styles and high quality. Also, the trucks carrying the deliveries must leave the warehouse at specific times to ensure that the shipments are delivered to the stores at specified times.

Zara is the flagship brand of Inditex, captivating maximum sales Gallaugher, This strategy eventually helps in the company producing only products that are in high demand thus improving its performance.

ZARA’s Supply Chain Logistics

Zara production facilities in the world. Also, its strategy is customer centered and is based on the belief that competitive advantage is attained through value addition to the consumers.

They have only 2 seasons per year Vs 16 for Zara which entails a lot of consumer rejections, because products are not aligned with customer expectations. Both are correct for respective companies. They also take feedbacks from the sales advisors to understand more the trends. Zara todays successful cannot working without the IT support, the entire IT system linking every department and working processes, it likes the heart of the Zara.

Simon and Schuster, New York. Suppliers Zara follows vertically integrated supply chain so it exercises control over suppliers. Both Zara and customers would be winner. Besides clearly defined timelines, the company has a policy of labeling the garments before they are shipped leaving the store to price the garments upon destination.

People today are facing many problems that cannot solve with it. Zara produces these items only when the demand for them already exists.

However, the concept should not be adopted blindly but should include activities that are considered weak.Mar 09,  · For students of supply chain Zara is an icon, relying on a contrarian strategy of vertical integration in retail apparel to introduce dramatically more new items each year.

Abstract: The retailing organization Zara has suppliers from about 50 countries. Zara is called “Fast fashion” in a segment of the market. Following things in Zara’s ICT try to seamlessly coordinate between organizations and enhance supply chain integration.

4 Best-in-Class Supply Chains To Watch and Learn From Nov 28, | Case Studies, Supply Chain | 1 comment While I’m a firm believer that innovation, not emulation, is the way forward for any company wishing to differentiate through its supply chain, I also believe that reinventing the wheel is something to be avoided if possible.

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This case discusses the unique supply chain management practices of Spanish garments retailer Zara, which enabled it to gain competitive advantage over other fashion retailers in the world.

Zara's vertically integrated supply chain system enabled the company to place the latest designs in any store across the world within a period of. Zara Supply Chain Management Case Solution,Zara Supply Chain Management Case Analysis, Zara Supply Chain Management Case Study Solution, WHAT ARE THE ROLES THAT OUTSOURCING AND PROCUREMENT PLAY IN THE SUPPLY CHAIN?


how to develop a competitive supply chain in order to response to the speed of the customer changes in clothing industry. Literatures review – The key success factors of the clothing industry are explained.

Also the supply chain concepts related to the industry are developed .

Zara supply chain case
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