Supply Chain And Logistics Management Of Fashion Related Retailer Company

All in all, in this assignment I answer three questions. These questions are very important for any company that related to produce product in fast fashion like Zara Company. So, the question in this assignment was talked about what is the supply chain for Zara Company from raw material to customer and what is the disadvantages and advantage for fast fashion and the last question is about the horizontal and vertical

The Spanish retail chain Zara has unique supply chain management practices that enable it to gain a competitive advantage over other fashion retailers in the industry. Zara’s rapid response time enables the firm to quickly respond to changing fashions while deliberately under producing products. This strategy, which is supported by competencies in logistic management, design and information systems, allows the company to maintain less inventory and higher profit margins and is a key factor to Zara’s success. The firm should continue to add value by seeking new opportunities to expand in the retail market and maintain their sustainable growth.

According to Christopher et al. (2004), the main features of fashion industry include very short product life cycle, high volatility, low predictability, and high impulse purchasing. As a result, it is crucial that how a fashion company could quickly respond to market demand and incorporate consumers’ preference into its products (Christopher et al., 2004). In order to maintain its leadership position in the market, the Company’s strategies focuses on these parts (Tokyo Fashion Corporation Official Website: http://www.tokichoi.com.tw/subTP.aspx?p=about):

The supply chain from raw material to consumer it's from design and production to distribution and retailing. Zara has unique and rabid supply chain today. Design and production are internal process and are done in company. At Zara's headquarters, there are creative teams of three hundred professionals doing a design process. They responsible for design the designs which will satisfy customer needs and keep pace with fashion. Zara can take a product from concept through design, manufacturing, and store-shelf placement in as

department of the company. In the internship report I will try to depict the whole

The creation of these two distributions centers it will be a test for Zara, it will be like a duplication of its business model and also a big signal of alarm towards the competitors but it also be a failure if it isn't well managed. I would like also to consolidate the transnational strategy by adding two more elements: a management team that will be in charge with the coordination of all activities regarding the development of the two distributions centers and a council will be added also in order to supervise and improve the communication between the product divisions and the distributions centers (Exhibit 1). The information from the local centers will be sent to the Spain headquarters, in this way; the "design-on-demand" model will be more adapted to the various country specificities. An optimal solution can be the combination between cost leadership and local responsiveness. 6. Conclusion Zara is one of the biggest retailers in the fashion industry. Its business model is unique: Zara gathers the information from the customers and then respond in a fast manner to their demands. As long as Zara is keeping its philosophy and make some modifications regarding its strategy in order to face the futures challenges it will be impossible to assist to the disappearance of this retailer in the near

An example of successful operations strategy in the retail industry is the strategy employed by Zara which is discussed in this critique. Zara started as a single shop in La Coruna and then rapidly spread its wings to 68 countries; opening a store each day - one of the fastest global expansions the world has ever seen. Throughout the entire system of Zara’s business; designing, sourcing, manufacturing, distribution process and retailing come out a number of success factors: short cycle time, small batches per product, extensive variety of product every season and heavy investment in information and technology. This elements feature in every aspect of the business.

1. KLF Electronics is an American manufacturer of electronic equipment. The company has a single manufacturing facility in San Jose California. (20 points)

The supply chain is the network created amongst different companies producing, handling and/or distributing a specific product. Specifically, the supply chain encompasses the steps it takes to get a good or service from the supplier to the customer {1}. Supply chain management is a crucial process for many companies, and many companies strive to have the most optimized supply chain because it usually translates to lower costs for the company and in Zara’s case a highly competitive and profitable system.

In recent years, the rapid changes in the fast fashion industry, a highly concerned about environmental issues as well as the sustainability for the company. Thus, it is a big challenge for the company 's global operations to think about how to use the market intelligence, sensitive response and do more eco-friendly produce to stand out in a competitive market. In contradiction of fast fashion strategy, their supply chain must have the capabilities of fashionable design, quick response, and affordable costs. Therefore the operation decisions of supply

Fast Fashion industry is perhaps one of the most demanding challenges for industrial logistic management. According to (Christopher, 2004) there is an increasing propensity to get products and materials from other countries. This global outsourcing may consequence in longer lead times despite the low labour cost. Keeping track of this enormously fast and cut-throat world of fashion industry has never been trouble-free.

The essay is based on a case study which is related to the study of Zara. Within this essay it evaluates the production and logistics techniques utilised by Zara. The essay outlines the quick response (QR) and how it impacts the inventory levels and customer service. Hence the essay outlines systems used and how these help to utilise the competitive advantage within the clothing market.

Abstract This chapter explores and develops fast fashion in the current retailing industry and its impacts on how the Chinese textile manufacturing industry has adjusted to remain competitive. Fast fashion evolved at the turn of the twenty-first century into a business approach characterized by fresh fashions, shorter life cycles, and faster production, placing significant pressure for rapid delivery, quality products, and low prices for each segment of the supply chain in a highly competitive environment. Manufacturers must utilize dynamic

The programme aims at developing a framework model focused on critical decision areas in the strategy formulation process: strategy is studied in terms of goals (pursue of critical success factors), configuration choices and intra- and inter-firm management practices. The final goal is to provide a support for the definition of the suitable supply chain choices according to the competitive priorities of the supply chain: therefore, the unit of analysis is the complete network of companies and relationships involved. Given this introduction, the paper is arranged as follows. Section 2 presents a literature review about the luxury segment of the fashion industry and supply chain strategy, showing what are the main limitations in applying the existing supply chain strategy models to the luxury fashion industry. Section 3 is devoted to better outline the research questions, whereas in Section 4 the research methodology is presented, introducing the main features of the companies involved in the performed case studies. Section 5 deals with the analysis of the results. Finally, Section 6 will draw some concluding remarks and suggest future research paths. 2. Literature review Cigolini et al. (2004) and Miragliotta (2006) provided a comprehensive analysis of the most relevant supply chain management tools and

Another problem that Zara’s information system is facing is that it is not sustainable in an ecological way. Indeed, the amount of shipping required by the actual centralized business model is already massive and it is expected to grow exponentially with the participation of the booming Asian economies. Such a model is not complying with the current ecological trends and reforms. For instance, the Global Commerce Initiative (GCI), a group of manufacturers and retailers working together to simplify and promote global commerce has lately been working on the elaboration of the 2016 Future supply chain design. Roland Dachs and Xavier Derycke, members of the GCI Future Supply Chain Work Team, announced in a report “In the future, the (supply chain)