Zara–Rapid Fire Fulfillment Assessment Essay

672 Words Sep 20th, 2013 3 Pages
Terry Lawler
August 10, 2013
BUSM3022
Foundations of Supply Chain Management
Zara–Rapid Fire Fulfillment Assessment
Bob Goldwasser

Introduction “Do everything possible to let one hand help the other. And whatever you do not take your eyes off the product until it’s sold.” Amancio Ortega
This paper will present information on Zara Europe's fastest growing apparel retailer who has about 1500 stores in major cities around the globe. This paper will explain why the company's supply chain strategy is successful. It will also explain what advantage Zara has against the competition by having a very responsive supply chain. Next this paper will explain what advantage Zara gains from replenishing its stores multiple times a week compared
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A. Lweis, J.A.D. Machuca, 2004). Some of the 300,000 new products they offer every year are children’s apparel along with women’s and men’s apparel.
Schedule
Zara offers more new products faster than other retailers because of their production process. They have over 200 designers in house to create new merchandise at a faster pace (K., Ferdows, M. A. Lweis, J.A.D. Machuca, 2004). Along with pre-ticketing them allows for quicker sales.
Infrastructure, Production and Distribution Zara has a 120,000-square-meter logistics center in Zaragoza and Madrid. They follow a fundamental rule known as, queuing model. This model allows for a faster response time for product demand (K., Ferdows, M. A. Lweis, J.A.D. Machuca, 2004).
Zara has three principles for production they are; closing the communication loop, stick to a rhythm and leveraging your assets (K., Ferdows, M. A. Lweis, J.A.D. Machuca, 2004). This rhythm is what keeps the production high and cost low.
Distribution consists of sometimes sending trucks that are half full to get merchandise out to stores with new items (K., Ferdows, M. A. Lweis, J.A.D. Machuca, 2004). They are then sent to the airport that will take them to their next destination (K., Ferdows, M. A. Lweis, J.A.D. Machuca, 2004).
Conclusion
This paper presented information regarding one of Europe’s
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