Sc operational practices supply chain strategy think of the supply chain strategy as a bridge between business strategy and sc operations. Zara and supply chain management one day its in and the next day its out a popular phrase that often resounds when the apparel industry comes to mind. There are 5 crucial phases in zaras supply chain procurement, supply, production, manufacturing, distribution. Zaras supply chain links from supplier to manufacture to distributor to stores and to customers are tighter than many other companies because its. Moreo ver, fast informati on sharing reduces t he costs and maintai ns the fashion tren ds and customer sa tisfaction. One thing i would say is that they buck the trend of manufacturing in east asia and manufacture in europe this means they can react very quickly to market trends, and also their leadtimes. Nov 14, 20 the key to zaras success vertically integrated supply chain where design, production, distribution, and retailing were integrated. Im not aware they were classed as the best being honest. It begins by redesigning couture trends for the mainstream market and then leads to manufacturing, distribution and then retailing.
Effective and efficient techniques of zara s supply chain model. 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 three challenges challenge 1 understand zaras current supply chain strategy challenge 3 craft a future. So how has zara been able to standout from all other fashion competitors. Zaras unique supply chain management social media for.
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. Inditexzaras superresponsive supply chain reduces bullwhip effect. Jun 07, 20 supply chain management key challenges duration. The activities involved in supply chain management range from the development of products, sourcing, logistics, as well as the production process and.
The supply chain model of zara includes raw material suppliers, fashion designers, clothing factories and the store managers. Like everything else in the mcdonalds approach to supply chain management, kpis are in place to provide insight and support alignment, not to lord it over suppliers. See exhibit 2 for a complete breakout of the responses. Fashion industry is one of the most primitive form of supply chain management and its practices have been extended, adopted and become the. Pdf the economic value of a sustainable supply chain.
Zaras organizational culture and structure mswpg7212. Zaras case study analysis case analysis, agile supply chain. Supply chain and risks management definitions 35 b. M based on 20002001 figures, kasra ferdows zara avoids building inventories in any part of its supply chain from raw materials to end user. In 2018, zara launched its global online store, marking a. Zaras supply chain management model secret behind zara. Supply chain management project nike shoes duration. Organisational culture and management mswpg7212 uploaded by. Strategic techniques that differentiate zara from other fashion brands. Zaras agile supply chain free download as powerpoint presentation. The successful implementation of an integrated supply chain strategy enhances total control over the. Zaras case study analysis case study solution, company information this paper is about the company, zara, which is a fashion label which was established in the year 1975 by the spanish group, inditex, w. Zaras supply chain and operations management term paper. Zaras expanding global reach could finally put its iberian peninsulabased ecosystem to the test.
Evaluating effective supply chain management in zara. Spanish fast fashion retailer inditexzara broke the 2season. The key to zaras success vertically integrated supply chain where design, production, distribution, and retailing were integrated. Biggest strength of the organization is its goods are delivered within 24 hours of the receipt of the order on europe and about 40 hours in other locations viardot 2015. A collection of resources and commentary providing an introduction to supply chain management and related systems for students, practitioners, and anyone else interested in learning more about how to design, manufacture, transport, store, deliver, and manage products. Arguments are made based on marketing, finance, and. Fashion forward zaras supply chain strategies zara. Zara has been hailed as a leading supply chain operator for years, standing out not only against its competitors in the fashion industry, but against most other bestinclass supply chains across every commercial market. This case study and supply chain model is based on data from articles listed in the bibliography below. 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. Study the design, production and distribution processes of zara. 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. Zara operates a marketorientated business strategy that is based on satisfying customer needs.
And, in keeping with zaras distinctive edge, each of these steps makes a. Zaras concept of supply chain management highly favors its pursuit of excellence in the market. 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. Risk identification and assessment in zaras supply chain a. 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.
Zara s case study analysis case analysis, agile supply chain. Zara supply chain management case solution and analysis. 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. Therefore, the strategy of fast fashion make zara successful and their operation management and supply chain are their competitive advantages. How zara operates the most agile supply chain in the world.
B clothing industry supply chain concepts 1 agility agile supply chain is a networks ability to consistently identify and capture business opportunities more quickly than its rival do according to calfang 2009. Zaras case study analysis case solution,agile supply chain. Moreover, supply chain management is more of a conscious effort held by a company with an aim of developing and running supply chains effectively and in an efficient way anderson et al 1997. Zaras fashion retail supply chain strategies supply chain 247. Zaras strategic capabilities and value chain analysis. 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. Zara supply chain management case solution and analysis, hbr. Oct 27, 2015 zara and supply chain management one day its in and the next day its out a popular phrase that often resounds when the apparel industry comes to mind. Oct 02, 2016 zara is a spanish fashion chain stores, which is one of the largest international fashion brands of inditex. 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 two to three weeks. Zaras supply chain management practicesoperationscase. Jan 22, 2017 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.
Zaras business model via its operation strategy duration. With ever changing trends it is even harder to predict the market and hence forecast the required raw materials and supplies. Strengths and weaknesses 9 bibliography 10 appendix 11 i. Zara needs a good system to perform operation than any other companies. The successful implementation of an integrated supply chain strategy enhances total control over the operations. Zaras supply chain operations more tha n the other fashion i ndustries. Nov 28, 2016 no article about top supply chains would be complete without the inclusion of zara, the star of the fastfashion retail world. By utilizing the available resources with utmost concern then, one can definitely succeed in business. They are a successful, innovative firm whose competitive advantage really lies with their operations.
Founded in 1975, zaras parent, inditex, has become a leading global apparel retailer. As described in a case study of zaras supply chain, the company is vertically integrated, controlling most of the processes in its supply chain. The implications of these effects for supply chain management are numerous and important. Zaras procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes. On the average, 50% of its products are manufactured in spain, 26% in the rest of europe and 24% in asian countries. Zara is the flagship company of inditex, the global spanish fashion retailer inditex, 2009. Arguments are made based on marketing, finance, and production theories that by engaging in socially. The economic rationale to operate a global supply chain in a sustainable manner is developed. Study the design, production and distribution processes of. Zara s case study analysis case study solution, company information this paper is about the company, zara, which is a fashion label which was established in the year 1975 by the spanish group, inditex, w. Zara is a spanish fashion chain stores, which is one of the largest international fashion brands of inditex. Rethinking their supply chain strategy, zara will face. Master of engineering in logistics and supply chain management. Zara excels in marketing and supply chain management.
Supply chain management of zara linkedin slideshare. Rethinking their supply chain strategy, zara will face three. Pdf supply chain management of zara mona singh academia. For zara, its supply chain is its competitive advantage. 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. Cashmere blend spain texport acrylic fabric bulgaria textil. Zara s business model via its operation strategy duration. Integrated supply chain management iscm program at the massachusetts institute of technology mit conducted a delphi study with more than 30 supply chain experts from industry, academia, and consulting. Originalityvalue this paper uses the findings of other researchers as a measure of the achievements of zara against academic theory. The key to zaras ability to establish an agile supply chain rests on the following unique approaches. Feb 26, 2017 im not aware they were classed as the best being honest. Business and management submitted by nindamartha words 1670 pages 7. Its well constructed supply chain management strategy. This presentation talks about the agile strategies followed by zara.
Apr 14, 2014 one day its in and the next day its out a popular phrase that often resounds when the apparel industry comes to mind. 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. The success of the zara, which has become a successful fast fashion company in spain, has built a strong information exchange system with every part of its supply chain. Zara supply chain and valuecreation makrand agrawal b43 palash vermae35 sai praveend23 2. And, in keeping with zaras distinctive edge, each of these steps makes a decisive departure from the industry norm. The fashion industry is known to run on a high degree of uncertainty. Supply chain management is the strategic management and coordination of all traditional business functions within the supply chain, with the goal of increasing longterm performance and striving for customer satisfaction at the end point of delivery.
The study found that the great majority of respondents who answered the question 70 percent agreed that supply chain vs. Zaras business model decides that the company wants to exchange information and it wants the information to be exchanged fast. With ever changing trends it is hard to predict the market and forecast the required raw materials and supplies. New os system will link zaras supply chain better and faster. Supply chain strategy the purpose of this report is to compare the supply chains of zara and benetton, two global players of. Zaras fast fashion edge arteixo is a small town in northwestern spain near the atlantic, surrounded by fishing villages. 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. Zaras successful supply chain management strategy social. Zara s case study analysis case solution,agile supply chain. All these are derived from the zara global distribution center which is known as the cube. These strong numbers are happening at a scale any business leader. Nov 14, 20 for zara, its supply chain is its competitive advantage. Apr 30, 2017 supply chain management project nike shoes duration. 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.
Zara excels in marketing and supply chain managementzara. Zara supply chain management mona singh 14868329 aut university. 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. Sc tations, or scenarios, regarding the nature of competition and the supply network.
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