Supply Chain Management : Zara 's Strategy

Decent Essays
According to Motiwalla (2011) “Supply chain management is the science of developing a strategy to organize, control, and motivate the resources involved in the flow of services and materials within the supply chain.” (P. 305). In fact, Zara’s strategy in the clothing retail business is to comprehend the customers needs, produce new fast styles of clothing, and market it for sale using efficient information systems to gather information, manage product, inventory and distribution. Likewise, Limited Brads strategy managed to consolidate their technology operations into a single shared service for all of its brands using chain technologies and processes to drive the speed to market requirements.
First, “Retail companies have become involved in supply chain management in order to control product quality, inventory levels, timing, and expenses.” (About money). For this reason, Zara’s strategy ensured that its supply chain capabilities supported its ability to satisfy the targeted customers. In addition, Zara collects information on customer needs, integrates data with design, manufacturing and distribution functions. With this in mind, Zara concentrated its product to short lead time, lower quantities, more styles and use an effective distribution system. Similarly, Limited Brands, shifted to a high end product line that required a strategy to bring product to market and customer satisfaction. Furthermore, Limited Brands management approved the project of building a global
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