Pdf this chapter discusses basic supply chain and operations strategies. Zaras secret to success in comparison to its competitors, zaras supply chain is quite unconventional. All these facts play a key role in the new relationship between retailers, suppliers and consumers. Zara is the most compassionate supply chain that ships the latest products to the stores globally twice a week. Zara is an international fashion retailer which has gained considerable acclaim, being one of the leaders of the highstreet fashion industry, and regularly producing new products for the market, at a rate that is quicker than its competitors can achieve, due to the strong supply chain in place. It begins by redesigning couture trends for the mainstream market and then leads to manufacturing, distribution and then retailing. Zara supply chain analysis the secret behind zaras retail success. The key to zaras ability to establish an agile supply chain rests on the following unique approaches. Comparative study of supply chain management offast fashion.
However, in recent years, with the trend of the retail market is beginning to slump and rising consumer demand, zara lack of furtherinnovation in supply chain management. May 12, 20 inventory stores place orders twice per week and the supply offinished goods is matched to store demand. Zara supply chain management case solution and analysis, hbr. On the average, 50% of its products are manufactured in spain, 26% in the rest of europe and 24% in asian countries. Zara supply chain management mona singh 14868329 aut university. Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zaras current supply chain strategy challenge 3 craft a future. Pdf inditex is the largest fashion distributor and retailer in the world, with. Research on innovation supply chain management in fast.
Zara has succeeded in overtaking gap as the global leader in apparel retailing through innovative supply chain management. We work with a system that allows us to control and trace our garments in order to guarantee that our suppliers are. Keywords supply chain management, agile supply chain, zara case study analysis. 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. Fashion supply chain management through cost and time. 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. Zara possesses 90% of its stores in 88 countries including united states, europe, asia, middle east and many, and the rest is the joint ventures or franchises. In the analysis phase, the total lead time the time from supplier until sale to final. Purpose to analyze zaras success due to its supply chain how it correlates with valuecreation for the company. Analysis on the successful case of efficient supply chain in zara, ieee. This week, supply chain legend zara once again posted excellent results, with 2015 sales and profits both. 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. Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zara s current supply chain strategy challenge 3 craft a future. Value chain analysis value chain analysis is an important part of the strategy process, especially within the positing school of strategic management mintzberg et al.
Its well constructed supply chain management strategy. 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. Pdf operations and supply chain strategy researchgate. This week, supply chain legend zara once again posted excellent results, with 2015 sales and profits both up by 15% over 2014. Zara is a clothing retailer who has taken a new approach in the industry. Supply chain management scm is the success factor in fast. Question 1 make an analysis of the company considering the swot model. The efficiency of zaras supply chain aligned with their business. So is for zara, we are going to discuss on pestle analysis for zara.
Zara supply chain and valuecreation makrand agrawal b43 palash vermae35 sai praveend23 2. Zaras unique business model is driven by its supply chain capabilities. Originalityvalue this paper uses the findings of other researchers as a measure of the achievements of zara against academic theory. May 02, 2019 in zara store, we can find clothing for men, women, and children. Instead of focusing on competitive product prices and advertising zara has developed a super integrated supply chain paralleled by few 1. Pdf supply chain management of zara mona singh academia. The strategic plan for a stable and sustainable supply chain 20142018 includes identifying and properly knowing suppliers and manufacturers, performing exhaustive assessments and helping them to improve and optimize the social and working conditions of their employees, thus ensuring their sustainability and adjustment to the standards required by inditex, creating stable and longterm. Value chain analysis involves primary and support activities. For solving the deviation between the supply chain planning and the actual market demands in mass customization mc, the collaborative allocation of general modules in the productfamilyoriented. Mar 17, 2019 zara is making large investments in information technology, ai and other modern technologies to bring greater efficiency in its supply chain and retail network.
Strategic techniques that differentiate zara from other fashion brands. Zaras successful supply chain management strategy social. Production is then increased or decreased in theflexible production facilities. In manufacturing, zara links the two sites of sc strategies. Find out how zara effectively fulfills everchanging customer demands with a supply chain that drives efficiency and responsiveness.
Because zara is a private company, specific details of the zara business model and supply chain can be difficult to verify. Purpose to analyze zara s success due to its supply chain how it correlates with valuecreation for the company. Apart from the rfid technology which will enable better inventory management inside the stores, it has invested in it. The case study analyses the strategic, operational and supply chain processes that have contributed to the success of zara s retail operation. Pdf analysis of the keys to zaras inditex successful business. Zaras strategic capabilities and value chain analysis.
Mitx micromasters in supply chain management program overview duration. Zara is a good example of a retail organization, which need to purchase materials. Average fashion retailer has 2 to 5 collections that designs more than 5 months in advance and then pushes the manufactured merchandise to retailers or their own stores. Demand based production means there is very littleinventory in zaras supply chain, which results inmuch lower working capital requirements. Zara case solution, zara case analysis, zara case study solution, annual report part 1. Based on the current consumer trends and the requirements, zara releases the products and supply them accordingly. Zaras procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes.
Our supply chain respects workers and the environment. Zara case study solution tight deadlines, unclear tasks, clashing assignments are giving you sleepless night. It shows how the company has managed to embrace technology to deliver its products to customers in real time. In 2007, retailers around the world cut prices and closed stores with the credit crisis in full swing. This progress makes it possible to integrate all audits into a single, more efficient system. Designmethodologyapproach zara s case studies and literature.
So how has zara been able to standout from all other fashion competitors. This research on the european apparel industry emphasizes the economic and supply chain aspects of zara s operation. This research on the european apparel industry emphasizes the economic and supply chain aspects of zaras operation. Jun 28, 2017 zara is a good example of a retail organization, which need to purchase materials. In this paper, we utilize a network economics approach to develop a mathematical model for fashion supply chain management that allows a. External analysis inditex with its flagship brand zara should look to enter new zealand market, which is still untapped by the compan.
Inconsistency in fashion brought down many a clothing store, but swedish fast fashion giant hennes. Our next objective will be the integration of traceability audits used to verify the traceability of the supply chain, based on the analysis of information gathered through the manufacturer management system. How zara fashions its supply chain, strategic direction, vo 21, no. Primary activities supporting activities design how. Effective and efficient techniques of zara s supply chain model. In this paper im going to discuss the companys background and history, the swot analysis, the strategies that adopted in the company, challenges, opportunities, and the mission vision and objective. Pdf zara is one of the most popular fast fashion brands which expand quickly in the worldwide fashion market. Jan 04, 2020 because zara is a private company, specific details of the zara business model and supply chain can be difficult to verify. Purpose the purpose of this paper is to assess and document the key aspects in zaras success by identifing current gaps, and to provide direction for future. Zaras supply chain management model secret behind zara. Jun 18, 2011 this paper includes a study of the strengths and weaknesses of zara company supply chain management system. Purpose the purpose of this paper is to assess and document the key aspects in zara s success by identifing current gaps, and to provide direction for future research efforts.
Rethinking their supply chain strategy, zara will face three. The case study analyses the strategic, operational and supply chain processes that have contributed to the success of zaras retail operation. Scribd is the worlds largest social reading and publishing site. For this, they need to create a good supply chain model. An indepth single case analysis of inditexzara a spanish fast fashion retailer has been done to map out the adopted supply chain process that. Rethinking their supply chain strategy, zara will face.
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