Supply Chain Management Practices of Spanish Garments Retailer Zara,

1124 WordsMay 20, 20125 Pages
Introduction This case discusses the unique supply chain management practices of Spanish garments retailer Zara, which enabled it to gain competitive advantage over other fashion retailers in the world. Zara's vertically integrated supply chain system enabled the company to place the latest designs in any store across the world within a period of two to three weeks. The company produced garments as per the latest trends in a limited quantity. Zara introduced 12,000 designs every year, with new designs appearing in the stores globally, twice a week. The case explains in detail the design, production and distribution processes of Zara's supply chain. About Zara Zara was founded by Amancio Ortega Gaona (Ortega), who was born in…show more content…
Zara sourced undyed fabric from the Far East, Morocco, and India. Zara’s Voyage ZARA begins its activity with the opening in A Coruna (Spain) of its first store, although the origins of the group date back to 1963, the year in which Amancio Ortega Gaona, chairman & founder, begins his business activity (1975). GOASAM was founded by the owner of the ZARA and continues with the opening of the first stores in Spain (1976). The creation of INDITEX as head of the corporate group (1985). The opening of the first ZARA store outside Spain occurs in December 1988 in Oporto (Portugal) (1988). The United States & France are the next markets in which the group begins its activity with the opening of outlets in New York (1989) & Paris (1990). The birth of PULL&BEAR chain and the purchase of 65% of MASSIMO DUTTI group (1991). INDITEX continues to open new international markets in Mexico (1992), Greece (1993) and Belgium & Sweden (1994). INDITEX acquires the whole of the share capital of MASSIMO DUTTI. This year also sees the opening of first store of the group in Malta and in the following year in Cyprus (1995). Norway and Israel join the list in which INDITEX is present (1997). The BERSHKA chain, targeting the younger female market, commences its activity in a year which also sees the opening of new stores in new countries: Argentina, Japan, United Kingdom, Venezuela, Lebanon,

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