The Supply Chain Management And Logistics Of Fashion Retailer

Zara has its own railway track on which the goods move to the distribution centre. Its distribution facility functions with minimal human intervention and optical reading devices sort out and distribute thousands of clothing an hour. (Ray, 2010) Zara business model differentiates it from the competitors. It is positioned on high quality and low

Another way there strategy contributors to their success is that they have the capability to keep a significant amount of product in home soil in there won factories and reserve approximately 85% of their capacity for seasonal adjustments this way they will be able to rapidly respond to unexpected trends in the industry. Additionally they use foreign factories as many other companies do as cost is much cheaper which allows production to increase and distrusted accordingly, however for fast fashion items Zara produces in

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

Another positive point of Zara, due to high frequency of changing clothes is the low risk that this report. As they change constantly the outfit, if there is a product that is working good it can be immediately replace within a maximum of one week, while in other companies, where the stock is bigger, it will need to be stored in the shops for longer time. This will carry on low inventory costs. Zara, has an agile production that focus it success in the quick response to demand even though it is no, a priori, predictable.

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

The brand is well-known for its capability to distribute new clothes to the stores “fast and in a small batch, twice a week”, the store managers order clothes and other items, on a schedule that they follow in all Zara stores, so the new garments arrived just in time. To reach this Zara controls most of its supply chain than the majority retailers do. On opposed to H&M, Zara keeps a nearly all of its production in-house.For Zara, the supply chain is its competitive advantage. In house production allows it to be elastic in the quantity, occurrence, and multiplicity of new products that are gone to be launched. Zara commits only 15 to 25% of a season’s line. And it curls in only half of its line by the launch of the season, sense that up to 50% of its garments are designed and manufactured during the season. If items become highly popular all of the unexpected, Zara respond directly and create a new design in that popular style, so that gets new stuff into stores while the trend is still

Zara, Daughter Company of Inditex, is a fashion retailer known for innovating the fashion industry and changing the way the industry operates forever. Zara, the largest retailer in the world, has raised the bar, forcing other companies to follow suit in rapid product turnover with small batch production and high number of designs to please their customers. Zara produces more than 450 million products annually and has 1770 stores in 86 countries. Their success derives from their process innovation which dictates all aspects of their operations; they took a different route and gained a competitive advantage that no one expected.

Zara tries to synchronize the supplies to change designs based on customer feedback use Vertical integrating design strategy. Zara designs and manufactures clothes

In my point of view, the most famous way of ZARA strategies in doing their business has a huge linkage with lean which is the fast fashion. ZARA implement just in time strategy to keep their stock low, which decreases the waste of overproducing and inventory. They will only produce the product in the small batch to see whether it going to sell well or not and if the product is well sell they will produce them again but if it not they will have low failure-cost. By resulting of having just the stock they need, ZARA can make a new product more often, and when customer come in they will see a more new fresh product which will make customer come to their store more often. Also, they need not to do discount much or have their product unsold or to be the deadstock much lead them to gain a better margin. Also with one of Zara most famous key of their business “fast fashion”, which according to what Mr. Ortega the owner of Zara said in the book “Secret of Zara”, he said that when there are a new design ZARA want them to be able to launch in just for 2 week to make that item latest fashion product in that time. So, making a small amount of product will help them to make the new design product faster. ZARA is using vertical integration by implement in-house design, production, distribution and retailing instead of being like their competitor that

Supply chain combines these entire departments such as manufacturer, supplier, transporter, retailer, customers, and all the aspects which like above, their main goal is to complete customers demand by adding value to goods/services.

Defining and inspection of the Zara's Fashion stores and on understanding the impact of purchasing of supply chain strategies. The manufacturing ZARA clothing company has superb development of supply chain, practical and innovative distributional processes.

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's supply chain is unique as well. Current conventional wisdom calls for manufacturers in all

Even though there are threats and risks involved along with other challenges, the firms move into the direction of expansion so as to reach and to penetrate new markets segments. Zara, a vertically integrated company, yet controls most processes in the supply chain wherein 50% of its products are manufactured in Spain, 26% in the rest of Europe and 24% in Asian countries.  Although it outsourced the production of labor intensive processes, it still preserved the in-house other capital intensive processes, shielding its knowledge and know how. The quick-response capability of Zara is made possible by the three main stages that define the competitive edge of the company: design, manufacturing and distribution.

Zara has proved to be a maverick of its time – it came at a time that the apparel industry was fragmented there was no integration, the costs incurred were enormous it was highly labor-intensive leading to outsourcing to save on costs and the business model prevalent was not proving to be highly successful as compared to the models of other industries. In came Zara and showed that strategic imperatives depended on how a retailer sought to create and sustain competitive advantage through its cross border activities and seamless operations, the power of integration and the importance of sticking to your positioning without adding too many frills. Zara's factories were heavily automated,

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)