Innovation in the Supply Chain: Analysis of the Zara Case

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Innovation in the Supply Chain: Analysis of the Zara Case Case Synopsis Zara's mercurial growth as the flagship enterprise of the Inditex Corporation is attributable to the company's expertise in logistics, supply chain management and its highly effective use of tacit, implicit and process-based knowledge. From both an epistemology of possession and practice, Zara has been able to attain formidable competitive differentiation at the process level of their business. This is exemplified in their ability to open one new store a day for the years covered in the case study, leading to having just over 11,500 stores in 52 countries as part of the Inditex group (Cavill, 2011). According the company's latest financial reports and briefings with the media, there are approximately 1,600 stores globally. By concentrating on Collaborative Planning, Forecasting and Replenishment (CPFR), Just-In-Time (JIT) manufacturing, real-time data capture and analysis throughout their distribution and supply chains, Zara has been able to compete an grow their business globally against much larger competitors. Intensive reliance on real-time data from the retail locations, coupled with real-time visibility throughout suppliers and fabric production facilities they own provide greater cost controls and greater efficiency in transforming data and knowledge into a competitive advantage (Cavill, 2011). Combining intensive knowledge management processes that are only selectively automated to gain

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