The Supply Chain Management And Logistics Of Fashion Retailer

2264 Words10 Pages
Executive Summary

This report aims to study the supply chain management and logistics of fashion retailer, Zara, to boost customer value. The concept of sustainability and competitive advantage is considered with other business models and compared with successful and unsuccessful company. The study is compared with the supply chain management and business strategies of Zara with Dell and Zara with Myers.


Zara was founded and established 1975 by Spanish born Amancio Ortega Gaona. The actual store dealt with the products of the manufacturing company Zara, was an outlet for cancelled orders of women’s night wears and lingerie. These have made a strong foundation for realizing the association between producer and retail trade
…show more content…
Theoretical frameworks related to study are, Porter’s generic strategies (1980), Just-in-Time manufacturing and supply chain patterns are studied and other related factors are organizational culture, modernization, education and knowledge management and disposition of core competence. Zara’s business strategy has been compared with Dell and Myers.

Comparison between Dell and Zara’s Logistics Management

Dell and Zara, both are prosperous corporations. One manufactures computers while the other one apparels.

Dell’s Supply Chain

It is very simple indeed consists of three main players: consumer, Dell and the supplier. The customer places the order, Dell procurer the supplier and parts, immediate assembly and supply to the customer.

Zara Supply Chain

Its supply chain is completely dissimilar from the other one. Designing, sourcing, manufacturing, distribution to outlets, are the main functions of supply chain.

Point of Difference

Type of supply chain of Dell

Dell follows horizontally integrated supply chain whereas Zara a vertically integrated supply chain. Dell is isolated from the production process, hires third party suppliers for the finished goods and delivery.

In contrast, Zara has full control over different phases of production of garments. The company is successful due its full control over the
Get Access