Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zaras current supply chain strategy challenge 3 craft a future. Among key aspects in the success of zaras supply chain management is its effective management of inventory. It has done for fashion what ikea did for furniture. The vertical integration of our production system allows us to place a garment in any store around the world in a period between two to three weeks.
These strong numbers are happening at a scale any business leader. Information plays an important role through zaras supply chain management. It begins by redesigning couture trends for the mainstream market and then leads to manufacturing, distribution and then retailing. May 02, 2019 in fact, supply chain management is the wide range of activities that are essential to plan, manage and implement the flow of a product.
Performance magazine supply chain performance in the. It has been in existence since 1975, and its supply chain has been among the key contributors to its success. They are a successful, innovative firm whose competitive advantage really lies with their operations. Challenges and recommendations louna sbou term paper business economics business management, corporate governance publish your bachelors or masters thesis, dissertation, term paper or essay. Effective and efficient techniques of zara s supply chain model. On the average, 50% of its products are manufactured in spain, 26% in the rest of europe and 24% in asian countries. Originalityvalue this paper uses the findings of other researchers as a measure of the achievements of zara against academic theory. Instead, the value of zaras brand comes from its supply chain and its ability to add value to every stage of the supply chain porter, 1985. Zaras supply chain zara is characterized by its unique and rapidfire supply chain that is governed by the vertically integrated system that links their shops, designers, and distribution system. By utilizing the available resources with utmost concern then, one can definitely succeed in business. Presenled by akrt bajaj shraddha gupta zara s profile zuru is lie iiugsiip ciuin slore oi ndilex group owned by spunisi lycoon amuncio orlegu zuru iirsl opened in in 1q. Rethinking their supply chain strategy, zara will face three. Oct 26, 2017 zaras supply chain management practices study the design, production and distribution processes of zara 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.
While this is not how the industry looks at producing clothing in the marketplace, it has worked very successfully for zara. However, choosing the right competitive strategy cost leadership, differentiation or focus requires knowledge of own and rivals cost structure. Zara supply chain and valuecreation makrand agrawal b43 palash vermae35 sai praveend23 2. The implications of these effects for supply chain management are numerous and important.
The case study analyses the strategic, operational and supply chain processes that have contributed to the success of zaras retail operation. Inditexzaras superresponsive supply chain reduces bullwhip effect. Proposal of improvement in supply chain management. As defined by the world famous, institute of supply management inc. Presenled by akrt bajaj shraddha gupta zaras profile zuru is lie iiugsiip ciuin slore oi ndilex group owned by spunisi lycoon amuncio orlegu zuru iirsl opened in in 1q. Rethinking their supply chain strategy, zara will face three challenges. Nov 14, 20 the key to zaras success vertically integrated supply chain where design, production, distribution, and retailing were integrated. Zara is present in countries in europe, america, and africa, with more than 1400 stores in 69 territories but with the majority of them in spain. Supply chain management scm is the success factor in fast fashion. Inditex zaras superresp onsive supply chain reduces bullwhip effect, ordertodelivery lead time to stores, ensures lean inventory a nd high level of responsive ness to adapt and deliver. Fashion industry is one of the most primitive form of supply chain management and its practices have been extended, adopted and become the. Download our free supply chain ebook to find out why. Indulgence versus restraint ind a society that allows free gratification basic and.
Purpose to analyze zara s success due to its supply chain how it correlates with valuecreation for the company. Viardot 2015 discussion of zaras supply chain management. We are glad to provide a free evaluation account to instructors, students and supply chain. Many other retailers have such long supply chain lead times that for them it would seem a lost cause for them to even try and respond to a sales report. Pdf the supply chain revolution download ebook full. Though these companies are dealing in the same line of goods the business environment is pushing them to provide garment products under diverse. We offer zaras case study help at most affordable prices through our proficient 24x7 service in the field of case study help. Zara s business model via its operation strategy duration. Zaras successful supply chain management strategy social. Sc operational practices supply chain strategy think of the supply chain strategy as a bridge between business strategy and sc operations. Zaras supply chain links from supplier to manufacture to distributor to stores and to customers are tighter than many other companies because its products turn over more frequently.
Custom supply chain management practices essay paper essay supply chain practices for the three european apparel companies seem unique because of their objective and goals that differ widely. Zaras procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes. The key players in this system are the wholesalers and retailers, so controlling the activities of those mark the success of the business. Cooper 2000 issues in supply chain management, industrial marketing. Effective and efficient techniques of zaras supply chain model. Designmethodologyapproach zaras case studies and literature published from. Zaras core competitive advantage high products turnover low level of inventory due to fast supply chain efficient distribution system commitment of its employees scanning of the fashion and market trends, and meeting the consumer demand relating to fashionable clothes flexible production system zaras. Sc operational practices supply chain strategy think of the supply chain strategy as a bridge. In account management, you create a new supply chain or work with an existing supply chain by clicking the edit button arrow 2 next to the existing supply chain you want to work on. Supply chain management practices read a free economics. Its well constructed supply chain management strategy.
Zara differentiates itself from the rest of the industry for its concept of fast fashion at an affordable price. Zara operates a marketorientated business strategy that is based on satisfying customer needs. But when discussing services, sometimes the supply chain is referred to as a value chain. All these are derived from the zara global distribution center which is known as the cube.
Buy the calculation, zaras design group has 200 people and design about 1,ooo new styles every month, therefore, for one designer will create 60 new styles per year ana it is 12 styles per week. While competitors were shutting stores, zaras highly responsive supply chain made it the most valued company in the retail space and its founder, the richest man in europe. Supply chain performance in the apparel industry zara. This research on the european apparel industry emphasizes the economic and supply chain aspects of zaras operation. Mar 09, 2016 this week, supply chain legend zara once again posted excellent results, with 2015 sales and profits both up by 15% over 2014. Rethinking their supply chain strategy, zara will face. And this is done and supported by not only zaras talented employees such as powerful store managers and commercials but also by the it zara employs.
This case study and supply chain model is based on data from articles listed in the bibliography below. Get the most appropriate analysis of zara case study related to supply chain management from our management experts. Unlike similar apparel retailers, zara controls most of the steps on the supplychain. Zara is the flagship company of inditex, the global spanish fashion retailer inditex, 2009. Supply chain practices of zara august 31, 2009 institute of management technology, nagpur pgdm 20082010 supply. Zaras strategic capabilities and value chain analysis. You can also upload copies of supply chain models sent to you by other scm globe users arrow 3, and check your account expiration date arrow 4. A zara supply chain strategy was the key term of my research and was an important part of my theoretical focus on supply chain strategy. We offer zara s case study help at most affordable prices through our proficient 24x7 service in the field of case study help.
The aim of this research is to give a clear picture of the theoretical research and to be able to manage analysis of the zara case study showing how company purchase and which supply chain strategy perspective. This fast fashion system depends on a constant exchange of information throughout every part of zaras supply chainfrom customers to store managers, from store managers to market specialists and designers, from designers to production staff, from buyers to subcontractors, from warehouse managers to distributors, and so on. Business and management submitted by nilesh1 words 449 pages 2. For zara, its supply chain is its competitive advantage. B clothing industry supply chain concepts 1 agility agile supply chain is a networks ability to consistently identify and capture business opportunities more. Though these companies are dealing in the same line of goods the business environment is pushing them to provide garment products under diverse circumstances. Explain the supply chain principles and best practices you used to. Analysis of the zara case case synopsis zaras mercurial growth as the flagship enterprise of the inditex corporation is attributable to the companys expertise in logistics, supply chain management and its highly effective use of tacit, implicit and processbased knowledge. As described in a case study of zaras supply chain, the company is vertically integrated, controlling most of the processes in its supply chain. It is rare to come across excess stock in any of the companys warehouse or store.
The company practices a coopetition strategy of enhancing efficient collaboration with suppliers. Supply chain, supply chain management zara rapid fire fulfillment zara is a company that is known for its speed and being responsive over the cost. Zaras supply chain success story zara is a spanish fashion clothing manufacturer and retailer, formed in the 1970s it is known that only two weeks are required for zara to complete the development and shipment of a new product to its stores, which outweighs the average of fashion industry of six months, thanks to the. Pdf the successful implementation of an integrated supply chain strategy enhances. Zaras supply chain and operations management term paper. Zaras expanding global reach could finally put its iberian peninsulabased ecosystem to the test. Zaras characteristics of vertical supply chain zara is a vertically integrated retailer. Oct 27, 2015 7 rules of fashion supply chain management lessons to contact the author of this entry please me email at. Study the design, production and distribution processes of. The speed at which raw materials are turned into clothing allows the company to ship more often and in small batches, limiting the distribution for every shop to the bare necessity. Zaras unique business model is driven by its supply chain capabilities. Zaras fashion retail supply chain strategies supply chain 247.
The company employs a philosophy of lean inventory across its supply chain ensuring that all resources are maintained at lean levels from the finished. The key to zaras ability to establish an agile supply chain rests on the following unique approaches. Inventory management and centralized logistics are also an important part of zaras unique supply chain system. Showcasing real solutions learned from true success stories like these and many others, the supply chain revolution provides for business leaders the secrets to succeeding. Pdf supply chain management of zara mona singh academia. This definition doesnt reveal whether a customer request is for a product or a service.
Zara is one of the best examples of supply chain success. Supply chain management of zara linkedin slideshare. Pdf zaras supply chain management practices pawan paliwal. Zara value chain analysis can be used in the competitive strategic decisionmaking process. Strategic techniques that differentiate zara from other fashion brands. This makes it possible for store managers to order and receive the. So how has zara been able to standout from all other fashion competitors. Zara needs a good system to perform operation than any other companies. Jan 04, 2020 yet the supply chain model presented here is still a useful picture of the zara supply chain and illustrates its operations and its capabilities see more about this in supply chain modeling and simulation logic. Zaras unique supply chain management social media for. Supply chain practices for the three european apparel companies seem unique because of their objective and goals that differ widely. The spanish fast fashion retailer zara a division of inditex has been a favorite topic in om classes for a while. The case of spanish fast fashion retailer inditexzara article pdf available in international journal of business and management 5. Apr 30, 2017 mitx micromasters in supply chain management program overview duration.
They have thus more free time to deal with more important issues as. Oct 31, 2017 created using powtoon free sign up at create animated videos and animated presentations for free. Zaras vertically integrated supply chain having a well operated chain of supply has increasingly become a critical element for companies to possess. An article in the new york times magazine november 2012, how zara grew into the worlds largest fashion retailer see reference in bibliography below, placed the store count at around 5,900. From strategy to operations, from internal operations to external operations, from the manner in which information is managed, to the manner in which information is managed, to the manner in which decisions are.
Unlike similar apparel retailers, zara controls most of the steps on the supply chain. Free essay zaras supply chain and operations management in. Zara spends its money on opening new stores instead of spending a lot on ad campaigns. Feb 11, 2017 zara is a clothing line a chain of stores from spain that belongs to the inditex group, a spanish multinational textile producer, and distributor. Keywords supply chain management, agile supply chain, zara case study analysis.
Jan 08, 2018 the case study revolves around zaras supply chain, which is a retailer based in spain and deals with accessories and clothing. Two groups of commercials play important roles in the supply chain management, one is the design and manufacture and another is fulfillment. Zaras supply chain management practices zara has managed to fill a hole and seize an opportunity in spain. Zaras supply chain management model secret behind zara. Zara supply chain management mona singh 14868329 aut university. Word count exclu ding covers, tables, executive summary and references table of contents. Estimates vary on the number of zara stores worldwide. About half its clothes are made in spain or nearby countries. Keywords supply chain management, agile supply chain, zara case study. If you have any 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. Spanish fast fashion retailer inditexzara broke the 2season paradigm i. Pdf the supply chain revolution download ebook full pdf. Supply chain management scm is a revolution that has the capacity to challenge all the norms and practices followed by businesses.
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