Zara Supply Chain Case Study

3847 Words16 Pages
Zara’s supply chain case study

Contents
Declaration: 1
Introduction 3
SCM tools and techniques 4
Advanced concepts and Future trends of SCM 6
Linking theoritical concepts and real life SCM 9
ZARA gaining competitive advantage using SCM 10
Managing global supply chain 12
Bibliography / References 12

Introduction

The aim of this case study is to analyze how ZARA has achieved its success through various business strategies. In particular, we will focus on supply chain management the relation between suppliers and retailers which helped to increase the efficiency of the company and also made customers satisfy. In particular, we will analyze various analytical tools and techniques implemented by ZARA to achieve success. And
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It also maintains database of current and historical data which also processes transactions of all business functions. It includes:

Order processing
Tracking shipment
Inventory assignment

JIT: It quickly responds to the demands of the target customers by using JIT manufacturing technology in order to meet the fast changing fashion and trends. JIT is a pull strategy of production where we make products on the basis MTO(Make to Order) or ATO(Assemble to order). In Zara, they purchase the fabrics un-dyed in order to allow faster response for mid season color changes.

Word of mouth(No advertisement strategy): Zara doesn’t spend on the advertisement or marketing of the products rather it pays it attention towards product quality and customer focus. According to its marketing manager, “Our stores and word of mouth will do the advertising for us”.

2) Advanced concepts and Future trends of SCM in the Fashion industry:
As we all know that fashion industry have short product life cycles i.e., the trend keeps on changing in order to respond to the rapid market changes the conventional forecast driven supply chain management is not adequate to meet the challenges in the fashion industry.
Nature of fashion markets:
Short product life cycle: In this industry, the sales of the products depend on the seasons, months and occasions. Once, the particular season is

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