H&M and Zara-Global Sourcing

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ABSTRACT The purpose of this paper is to use supply management as a tool in analysing the global sourcing processes and activities within two successful leading textile companies: Zara and Hennes and Mauritz (H&M). To describe their logistics and supply chain processes in order to understand how these two companies can add a good value to its customers, to its stakeholders and to its suppliers. Pressure for companies to create and deliver value to customers manifests itself in every stage of the business today. Therefore, we believe it is significant to compare and to contrast these two companies' activities and processes which lead them to success. Ultimately, we intend to provide some suggestions for Portuguese and Turkish textile…show more content…
Secondly, we are going to introduce what has been said about this topic and finally we are going to draw some conclusions for Portuguese and Turkish suppliers. The reason lies behind our choice on this topic is to analyze closely two similar yet different companies developed in different parts of Europe, North represented by H&M and South represented by Zara, and try to provide some suggestions for Portuguese and Turkish manufacturers to make a break through in the markets just as Zara and H&M. The materials used for this paper include books on Logistics and Supply Chain Management, web sites (company web sites and general ones), published research papers and class notes. LITERATURE REVIEW A well-established supply chain management is crucial for a successful company. Mentzer defines supply chain management as "the systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses in the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole." Through establishing the supply chain successfully, the organizations can create a competitive advantage among other companies. As Christopher emphasizes, the source of

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