This research on the european apparel industry emphasizes the economic and supply chain aspects of zaras operation. 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. 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 concept of supply chain management highly favors its pursuit of excellence in the market. These strong numbers are happening at a scale any business leader. Download as pptx, pdf, txt or read online from scribd. 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. The secret behind zara and uniqlos supply chain models. This affords inditex comprehensive control of its entire supply chain, and minimizes the possibility of unauthorised outsourcing. Zaras expanding global reach could finally put its iberian peninsulabased ecosystem to. 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 zara operates the most agile supply chain in the world there are 5 crucial phases in zaras supply chain procurement, supply, production, manufacturing, distribution. Zara supply chain management case solution and analysis, hbr. Purpose to analyze zaras success due to its supply chain how it correlates with valuecreation for the company. Pdf agile supply chain zara case study analysis shaoyu. Zaras supply chain management model secret behind zara. 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. Operations and supply chain strategy 4 dmitry ivanov a, alexander tsipoulanidis a and jorn schonberger b a department of business administration, berlin school of economics and law, ber lin. Zara has already used technology in its manufacturing plants, where complex processes are required to be simplified but such decisions to which extent we may incorporate technology in process and tools are to be taken after concise.
Primary activities supporting activities design how. Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zaras current supply chain strategy challenge 3 craft a future. 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. Originalityvalue this paper uses the findings of other researchers as a measure of the achievements of zara against academic theory. The case study analyses the strategic, operational and supply chain processes that have contributed to the success of zara s retail operation. This research on the european apparel industry emphasizes the economic and supply chain aspects of zara s operation. Social media comments about products, services, or companies offer very valuable information for the supply chain and associated processes.
The challenge for any company is figuring out how to gather this data, consume it, respond to it, and leverage it to enhance their position in the. Its well constructed supply chain management strategy. The key to zara s ability to establish an agile supply chain rests on the following unique approaches. Zara is a wellrenowned name in the field of clothes and accessories, all across the world. Zara i made this item you are going to buy, but i didnt get paid for it, read tags affixed to zara garments. Based on the current consumer trends and the requirements, zara releases the products and supply them accordingly. Inditex factories are supplied by more than 1800 suppliers and through higher level of integration, it has controlled costs and brought higher efficiency to its. Zara s procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes. Zaras strategic capabilities and value chain analysis. Management inventory management under conditions of certainty and uncertainty submitted by.
Zaras expanding global reach could finally put its iberian peninsulabased ecosystem to the test. Zaras successful supply chain management strategy social. Zara has achieved this despite proudly claiming that they have never spent a penny on advertising. However zaras success story lies in its unique break through supply chain strategy by which it has differentiated itself from its competitors. Company profile zara is the flagship chain store of inditex group owned by spanish tycoon amancio ortega hq in coruna, spain. It is the flagship chain store of the inditex group.
Pdf supply chain management of zara mona singh academia. May 02, 2019 in zara store, we can find clothing for men, women, and children. Zaras unique supply chain management social media for. 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. Find out how zara effectively fulfills everchanging customer demands with a supply chain that drives efficiency and responsiveness. Supply chain management scm is the success factor in fast fashion business. Zara supply chain advanced concepts and future trends of scm 6 linking theoretical concepts and real life scm 9 ezra gaining competitive advantage using scm 10 managing global supply chain 12 bibliography references 12 introduction the alma of this case study is to analyze how ezra has achieved its success through various business strategies. Zara is a clothing line a chain of stores from spain that belongs to the inditex group, a spanish multinational textile producer, and distributor. Scribd is the worlds largest social reading and publishing site. Zara is the most compassionate supply chain that ships the latest products to the stores globally twice a week. How zara fashions its supply chain emerald insight. Pdf agile supply chain zara case study analysis shaoyu lv. Zara azel francebih article pdf available in european researcher 4743. Evaluating effective supply chain management in zara.
The case study analyses the strategic, operational and supply chain processes that have contributed to the success of zaras retail operation. Mar 17, 2019 higher flexibility is a core feature of zaras supply chain. Effective and efficient techniques of zaras supply chain model. L ouis grestner junior once said that everything starts with the customer. 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. Perhaps the greatest complement being paid to uniqlo and zara is that some of their rivals are starting to follow their example. Zara supply chain analysis the secret behind zaras retail success. Wielandwallenburg, 2011 supply chain management scm is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain.
Nov 14, 20 for zara, its supply chain is its competitive advantage. Zara supply chain free download as powerpoint presentation. Inditexzaras superresponsive supply chain reduces bullwhip effect, orderto delivery lead time to stores, ensures lean inventory and high level. Leanne copeland and the whole team of zara at manchester exchange square, farida kaikobad. We work with a system that allows us to control and trace our garments in order to guarantee that our suppliers are. Over the past years zara has perfected their fast fashion model, meaning that even though the average fashion retailers take 6 months to produce garments, zara manages to do it in 3 weeks. 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. Purpose to analyze zara s success due to its supply chain how it correlates with valuecreation for the company. Rethinking their supply chain strategy, zara will face. Supply chain management of zara linkedin slideshare. Todays consumers are spending less on clothing and more on healthcare, electronics, leisure,travel etc and they can choose from a wide array of inexpensive products.
Viardot 2015 discussion of zaras supply chain management. Zara is the flagship company of inditex, the global spanish fashion retailer inditex, 2009. Integration of supply chain management and marketing. It deals with suppliers, with suppliers suppliers, with customers and sometimes. 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. Zara supply chain management mona singh 14868329 aut university mepm 2015 zara supply chain management table of contents 1. Our supply chain respects workers and the environment. Digitalization of zara and fast fashion technology and. Both uniqlo and zara took ideas new to the fashion supply chain from the automotive supply chain and therefore innovated, challenging old paradigms in there sector. 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. Responsiveness and collaboration in the fashion supply chain a thesis submitted to the university of manchester for the degree of mphil in responsiveness and collaboration in the fashion supply chain, to the faculty of engineering and physical sciences 2012 heba ahmad school of materials. 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.
This week, supply chain legend zara once again posted excellent results, with 2015 sales and profits both up by 15% over 2014. 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. The case of spanish fast fashion retailer inditex zara article pdf available in international journal of business and management 5. Responsiveness and collaboration in the fashion supply chain a thesis submitted to the university of manchester for the degree of mphil in responsiveness and collaboration in the fashion supply chain, to the faculty of engineering and physical sciences. Hottest trends in the markets, first and fast fashion, diversified and integrated supply chain models, inventory optimization, solid distribution web, customer database management, value chain have brought the glory to zara. That is achieved by maintaining a strict control over their supply chain, and manages to fit the entire production process into a 10to15day time frame. Group 2 abhay kanwar upasna handa gaurav lochab aank dhanda. So how has zara been able to standout from all other fashion competitors. This study suggests that if lindex focuses on the stated linkages and succeed with them, they ought to achieve optimal integration level.
Zaras procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes. Zaras unique business model is driven by its supply chain capabilities. Effective and efficient techniques of zara s supply chain model. Responsiveness and collaboration in the fashion supply chain. They have changed the supply chain and gone through a series of problems that takes the company years back. Zara case study creating value chain with supply chain. It begins by redesigning couture trends for the mainstream market and then leads to manufacturing, distribution and then retailing.
In zara store, we can find clothing for men, women, and children. Fashion supply chain management through cost and time. Will zaras latest supply chain crisis actually cause. Supply chain management supply chain management managing complex and dynamic supply and demand networks. Strategic techniques that differentiate zara from other fashion brands. Supply chain performance in the apparel industry zara. Zara is one of the best examples of supply chain success. With ever changing trends it is hard to predict the market and forecast the required raw materials and supplies. Zara supply chain management case solution and analysis.
It is a popular fashion designing and manufacturing company, which has been declared as the most efficient market responding enterprise. Competency mapping and capacity building through indepth staff training initiatives made zara to stand away from the crowd. The key to zaras ability to establish an agile supply chain rests on the following unique approaches. And, in keeping with zaras distinctive edge, each of these steps makes a decisive departure from the industry norm. This case study and supply chain model is based on data from articles listed in the bibliography below. In this paper, we consider fashion supply chain management through cost and time minimization, from a network perspective and in the case of multiple fashion products. Its high level of integration and flow of communication helps bring new designs to the market in as less as 15 days. Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zara s current supply chain strategy challenge 3 craft a future. Rethinking their supply chain strategy, zara will face three. For zara, its supply chain is its competitive advantage. The spanish fast fashion giant has been making headlines as of late after such notes began appearing on garments in its stores in istanbul alerting consumers that it has not compensated an array of garment workers within its supply chain.
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