Marketing Channels And Logistics Of Zara

Question 2: Zara’s logistic system and management practices can handle the current pace of growth, but they will need updating at some point in the future. How could quantitative management approaches and data analytics help Zara executives plan for the next generation of its logistics and management approaches?

Hence, technology is bettering reliability and speed with which information is divulged (Porter, 1980). Hand-held computers or PDA’s are utilized by Zara to collect information on consumer needs between retail stores and the factory in La Coruna. This along with regular telephone conversations between store managers and marketing specialists are one of the reasons that Zara’s information network is so effective. The utilization of PDA’s can be done by any company; it is Zara’s determination not to allow important information to fall by the wayside that assists with its success. PDAs are connected to the store 's point-of-sale (POS) system, enabling managers to see how garments rank by sales. In as little as an hour, managers can send information that combine the hard data captured at the POS intermixed with acumen on what customers would like to see. All of this data allows Zara to design and produce styles and orders based on feedback rather than guesswork. Hence, Zara avoids costly overproduction and the consequent sales and mark-downs that are so widespread in the fast fashion industry (Rohwedder and Johnson, 2008).

Logistics: that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point-of-origin to the point-of-consumption in order to meet customers’ requirements (CLM, 1999).

Logistics is planning and executing of the movement and support of forces. When examining logistics I have to draw from my most

A Supply Chain (SC) is an integrated process where involves various parties who are directly or indirectly working together to fulfil a customer’s demand. These parties can be manufacturers, suppliers, transporters, warehouses, distributers, retailers and end consumers. The functions of the SC cover a variety of areas, such as R&D, information flow, marketing, finance, distribution, operation, and customer services.

The business idea of Zara is to link customer demand to manufacturing, and to link manufacturing to distribution. And based on this general idea, Zara has several essential elements for its business model. First, speed and decision making, which means that in the external level, Zara need to respond very quickly to demands of target customers, and always keep in style. While for the inside, Zara treasure intelligence and judgment of common employees who enjoy a great deal of autonomy. Second, its marketing, merchandising and advertising strategy. Zara does not spend on virtually advertising, while it spends heavily on stores, and no selling online because of

2. (p. 463) Logistics is the activity that controls the transmission of physical materials through the value chain, from procurement through production and into distribution.

ZARA is an understood Spanish garments brand well known for its high-speed answer, which is considered as a win variable for the organization and obtaining competitive edge over its rivals around the world. Style is about new and in vogue garments, ZARA's stock administration and distribution strategy are the key components behind its high-speed answer procedure. ZARA has outlets in 86 nations, including Europe, United States, Middle East and Asia. In 2012, Inditex the guardian organization of ZARA has asserted US$20.7

Logistics is a vital component of supply chain management. Both involve the planning, carrying out and management of goods, services and information from the point of origin to the point of consumption. Logistics aligns the multifaceted pattern of traffic and transportation, shipping and receiving, import and export operations, warehousing, inventory management, purchasing, production planning and customer service. Organizations, like the one I work for, see logistics as a critical design of the supply chain. When organizations incorporate logistics as a key component of the business plan, they can use it to manage, coordinate and monitor resources needed to move products in a smooth, timely, cost effective and reliable manner.

Logistics is a very important part in the world now. And it plays a major part in the supply chain process. Without logistics the supply chain is a hard to continue. In a logistics system there are some parts such as Transportation, Information systems, Customer service, Inventory management, Materials management and Warehouse management. And in this Warehouse management plays a major role in the supply chain. In the supply chain process there are some parts that needs attention. After the raw materials are provided to manufactures the goods are sent to warehouses. Warehouse is the place where they store the goods which is to be sent to customers or other businesses. A Warehouse is a place where you store goods. It’s for further processing. There are some types of warehouses such as Public warehouses, Private warehouses, Leased warehouses and Contract

According to Larson and Halldorsson (2004) “unionist” perspective, supply chain management incorporates logistics as a key supply chain focused function. The Council of Supply Chain management professionals (CSCMP) defined logistics management as ‘‘that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet

A critical aspect of logistic management is managing inventory moving raw materials into the facility and moving finished goods out to customers. Moving finished goods out to customers is known as distribution. Distribution refers to the process through which goods and services go on their way to customers. The faster and more accurate accompany can fill customers order , the lower the cost for the organization the greater the likelihood that the customers will return .Dell uses a direct channel of distribution. Logistics management helps to contain costs as it relates to transportation when it is well coordinated. Example :when a customer orders a pc from Dell using the direct channel of distribution a courier is contracted to deliver the product to the customer in a specified. With logistics management a customer will be able to receive products ordered on

In today’s world, competence is taking on new dimensions. The ability to compete is being determined by the degree of responsiveness to customers & key issues handling. How fast you deliver the goods/ products, what the price paid by customers & what value customer is getting throughout the service is considered in a schematic & ordered way. Markets are quick demanding & customization of each logistics activities is essential for each customer, & has become the essential factor in logistics management.

The approach to analysis includes looking into the current supply chain processes and exploring the IT capabilities within Zara and proposing an Information Systems plan to enhance the process efficiency within Zara. The analysis reveals a significant but limited use of IT infrastructure in Zara to support several of its key business functions. It also exposes the need to upgrade the current IT infrastructure for sustaining the competitive advantage.

It is a great pleasure to provide the thesis paper titled “A Study on Marketing Strategy of ZARA” Which was assigned to me as a partial requirement for the competition of BBA.