Advantages Of Supply Chain Management Of Zara

Unlike most European retailers, who outsource manufacturing to Asian countries, Zara’s production is mostly concentrated in and around Spain close to its various other business functions-this helps in coordination, closer control, taking joint decisions quickly and great flexibility as production capacity is available on demand. Zara buys undid fabric in bulk from the Far East in advance as per the forecast and this gives them the flexibility to color or print the fabric to the desired effect.

The Supply Chain Management process is at the very center of all the core operational processes of a company. It plays the role of a central nervous system regulating the product flow by managing the associated information flow that runs through a company. It has very strong linkages with major core processes like product development management, purchasing management and customer relationship management.

“Zara has pioneered leading-edge fashion clothes for budget minded young adults through a tightly integrated vertical structure that cuts delivery time between a garment’s design and retail delivery to under three weeks (against the industry norm of three to six months)” (Grant, 2010, p.212)

Hbswk.hbs.edu. 2005. Zara's Secret for Fast Fashion - HBS Working Knowledge. [online] Available at: http://hbswk.hbs.edu/archive/4652.html [Accessed: 25 N

The basic strategy for fighting competition is to attract buyers at lower prices, more unique designs, high-quality design, efficient customer service and solid image brand. Thus bargaining power of buyer for apparel industry is high as the products falls under the basic needs in human lives. There is no much difference in terms of products offered by the apparel company, so if buyer is unhappy with the product or service they can easily switch to another brand. Thus, Zara are trying to strengthen its position in the market by using their unique strategy by giving priority to buyer to meet their special needs.

Supply Chain Management is the integrations of the flows of products and materials, services, information, and financials through the entire supply pipeline from the supplier’s

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 two to three weeks. The company produced garments as per the latest trends in a limited quantity. Zara introduced 12,000 designs every year, with new designs appearing in the stores globally, twice a week. The case explains in detail the design, production and distribution processes of Zara's supply chain.

At its heart Zara is building on a vertically integrated demand and supply chain, while most other textile chains rely on outsourcing and cheap labor in China. It enables company to short turnaround times and achieves greater flexibility, reducing stock to a minimum and diminishing fashion risk to the greatest possible extent.

In recent year, Zara is well-known as the world’s largest retailer and the most favorite fashion brands in the world to the people in their 20s-30s and children. Its success doesn’t come from just only what it sells but how it sells them.

Zara brand products are part of the Inditex Group which was founded by Amancio Ortega. Zara brand products currently compete in what is called the fast fashion industry. Fast fashion is a trend in the fashion industry where companies produce and sell new clothing trends within the market as quickly and cheaply as possible (Fernando, 2015). This is made possible by new innovations within the supply chain management of these companies. Innovations are precisely the way Zara has become one of the top fast fashion businesses in the industry. By utilizing their core competencies along with efficiently managing their supply chain, Zara has developed a way to give customers what they want faster than anyone else (Hitt, Ireland, & Hoskisson, 2017, p. 100). Zara has done an excellent job at defining its business strategy and utilizing their core competencies to create value for their customers which is why they keep coming back. This also brings in new customers to purchase from Zara. The purpose of this paper is to examine Zara and various aspects of their business.

if supplier doesn’t supply on time may incur the company the loses of the clothes out of date fashion . Huge number of tons will be consumed faster than before because of this fast fashion. This was the possible disadvantage of the fast fashion distribution system. There are a lot of advantages that offset the disadvantages of the fast fashion distribution system. We may say here fast fashion requires innovation and brainstorming to get new designs overtime to be

Supply chain management (SCM) is the supervision of materials, information, and finances as they move in a process from supplier to manufacturer to retailer to the cessation consumer. There are three crucial flows of the supply chain: The product flow, the information flow and the finances flow. SCM involves coordinating and integrating these flows both inside and between

This competitive advantage for Zara is based on controlling business procedures in supply chain. This company is very different from most retailers who outsource their manufacturing to third party firms in other countries. Zara owns and closely controls their supply chain process which helps them to have more market demand (Lu, 2014).

Through their use of vertical integration Zara is able to meet consumer demands in a short period of time. This model describes their “fast- fashion” where they make the majority of the clothing in Spain and Morocco. The garments are available in stores in just two weeks. Speed and efficiency has helped Zara expand overseas and become a huge factor in their success. Zara’s products are available to consumers at their retail stores as well as online. The use of their vertical integration of designs, just-in-time manufacturing, delivery and sales create flexible structure for low inventory and quick response from consumers changing demands.

The fashion retailer has become one of the most successful fashion companies in the world – based on their unique way of manufacturing and distributing their clothes. As opposed to most fashion companies, Zara never manufactures lines of clothing and hope that the market will like it. Instead, they have highly efficient method for tracking what the market wants to buy, getting it into their factory, biasing their line of production accordingly, and distributing back to the stores.  This behavior/technology differentiates them, as they are able to meet their marketers’ needs rather than promoting