Essay On The Supply Chain Of Zara

1371 Words6 Pages
THE SUPPLY CHAIN OF ZARA For start in Zara's supply chain is unique. Current conventional wisdom calls for manufacturers in all industries to outsource their goods globally to the cheapest provider. Thus, most of Zara's competitors contract manufacturing out to low-wage countries, notably Asia. However, Zara makes 40% on its own fabrics and produces more than half of its own clothes, rather than relying on a hodgepodge of slow-moving suppliers. Even items that are produced in farms are dealt locally in order to maximize time efficiency. Nearly all Zara's clothes for its stores worldwide they are produced in its remote northeast corner of Spain (Chopra & M, 2000) . As it completes designs, Zara cuts fabric in-house. It then sends the…show more content…
A vertical integration, a company can integrate forward either in a forward integration or backward in a backward integration. A backward integration occurs when a company decides to own another company that makes an input product to the acquiring company's product (Zara, 1974) (Chopra & M, 2000). In addition, “How Zara manage the strategy of distribution and vertical integration? Problem Statement On which way can vertical integration of zara be an advantage for the company. Cutting cost because they do not outsource any channel. Cutting time, faster, effective, and efficient. Avoid conflicts emerge from different channels. Zara have broad vision to the market when casting a look at age diversity in stages as adolescence to adulthood, and diversity in the making of models for men, women and the elderly and children. Generally, vertical integration is the system Zara Zara dependent himself in the manufacture and distribution of products in small batches. Instead of relying on external partners, the company manages all the functions of design, warehousing, distribution and logistics
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