Compare and Contrast Two Supply Chains, Drawing on Concepts Used in This Course

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To start, it is vital to clarify the concept of a supply chain. It consists basically of all the process that the materials suffer as they flow from the source to the final customer. There are many concepts linked to this term, purchasing, warehousing, manufacturing, etc. Or more precisely: “a supply chain is a system of business enterprises that link together to satisfy consumer demand. The elements of a supply chain can be contained in the same business or be part of different companies” (Riddalls et Al., 2000) For this essay I have chosen two very different companies; Zara, a Spanish fashion collection manufacturing company, and Dell, American multinational information technologic corporation. Some years ago, in the fashion industry …show more content…

What they do is listen to consumer preferences and what it is more popular and produce what they want. That is why they always have fresh and trendy designs. In terms of production, they have and control the main factory in La Coruña (north of Spain) to be able to supply as fast as possible all the stores. The fact of having the factory in Europe and not in other countries such as China is high, but it is something that is covered by lower transportation costs as well as the capacity to supply demand almost immediately, which its translated in big amount of sells. It is a very flexible demand based production. Another positive point of Zara, due to high frequency of changing clothes is the low risk that this report. As they change constantly the outfit, if there is a product that is working good it can be immediately replace within a maximum of one week, while in other companies, where the stock is bigger, it will need to be stored in the shops for longer time. This will carry on low inventory costs. Zara, has an agile production that focus it success in the quick response to demand even though it is no, a priori, predictable. Dell’s supply chain, on the other hand it is completely different that Zara’s one. The components of Dell’s supply chain are the customers, Dell’s website (which is the only official place where you can buy a Dell computer), Dell’s assembly plant and Dell’s suppliers. The way Dell computers production works is completely different from

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