Originalityvalue this paper uses the findings of other researchers as a measure of the achievements of zara against academic theory. It was found that zara is a successful company in the fast fashion industry. Supply chain management encompasses the planning and management of all the activities involved in designing, sourcing and. System is designed for short production cycles, quick response qr to demand, and reduced number of markdowns distribution. Zaras fashion retail supply chain strategies supply chain 247. The value chain map for the zara company can be designed with the help of socr racetrack.
Technology leader saps erp operations solution has become the software backbone that contributes to companies efficiency in the supply chain. It is gradually overtaken by the fast fashion enterprises. Presented by manju pokharel supply chain management of zara zara. This case study and supply chain model is based on data from articles listed in the bibliography below. No other competitor can copy its business model until it first copies its supply chain.
Zara supply chain management mona singh 14868329 mepm 2015 2 1. I created this video with the youtube video editor. Zara supply chain management case solution and analysis, hbr. Zara supply chain management 2817 words coursework example. The blueprint of the zara s supply chain management can be shown as. Supply chain in the readymade garments industry zara case study. These strong numbers are happening at a scale any business leader. Apr 28, 2015 zara s supply chain management analysis provides deeper understanding of internal value chain. May 09, 2019 special emphasis was made on the companys supply chain management in kuwait. Zara supply chain management case solution, zara supply chain management case analysis, zara supply chain management case study solution, what are the roles that outsourcing and procurement play in the supply chain. Zara supply chain management 2817 words coursework. Lecturer at the fashion department, high institute of applied arts, 6th of october city.
Zara has succeeded in overtaking gap as the global leader in apparel retailing through innovative supply chain management. Third, some of it applications are really help the zara to make their usiness more efficient, the applications will be applied in the enterprise resource planning erp, supply chain management scm will emphasize a speed supply chain for zara, and customer relationship management crm. As defined by the world famous, institute of supply management inc. Purpose to analyze zara s success due to its supply chain how it correlates with valuecreation for the company. Supply chain performance in the apparel industry zara. The best feature of zara supply chain management is that it takes maximum five to six weeks to deliver the product to the customers as compare to its. Manufacturing is centered in northwestern spain arteixo, galicia, spain where company headquarters and the cube are located.
Amany aabed lecturer at the fashion department, high institute of applied arts, 6th of october city. They monitor customer spendings in the store to evaluate and understand what types of designs are being consumed and then accordingly iterate on their next. May 06, 2020 zara a masterclass in supplier relationships and supply chain management may 6, 2020 zara has not been immune to the effects of covid19 but the company has said that its flexible business model and approach to supplier relationships have been pivotal in helping it to navigate the pandemic. Zara s supply chains has improved business performance and drive competitive advantage. Supply chain management practices group members arslan asghar l1s10mbam0170 muhammad sohail l1s10mbam0205 maryum kabeer l1s09mbam2043 introduction zara was founded in 1975. Use these strategic management tips to learn every aspect of your supply chain, from forecasting to scheduling and costcutting. They create up to designs every month based on store sales and current trends. Analysis of logistics systems 2578 words report example. Zara has achieved this despite proudly claiming that they have never spent a penny on advertising. Zara can design, produce, and deliver a new garment to its 600plus stores worldwide in a mere 15 days. Improving supply chain management is considered as its the business model which resulted in rapid growth and profitability.
Connect with an advisor now simplify your software search in just 15 minutes. A feasible and optimum combination of demand management and supply chain management should be taken into account to handle the market trends and win over competitors d. Zaras unique business model is driven by its supply chain capabilities. Mar 09, 2016 this week, supply chain legend zara once again posted excellent results, with 2015 sales and profits both up by 15% over 2014. Instead, the value of zara s brand comes from its supply chain and its ability to add value to every stage of the supply chain porter, 1985. Jan 04, 2020 yet the supply chain model presented here is still a useful picture of the zara supply chain and illustrates its operations and its capabilities see more about this in supply chain modeling and simulation logic. Zara supply chain and valuecreation makrand agrawal b43 palash vermae35 sai praveend23 2.
Oct 06, 2017 zara is the largest clothes company in spain, founded in 1975. All of them are involved in detailed designing of the products where the designers are the key players. Fashion supply chain and corporate social responsibility. Rethinking their supply chain strategy, zara will face three. The management of zara believes that the communication and the interaction with different stakeholders is the key to success for zara. Zara supply chain management case solution and analysis. Comparative study of supply chain management offast fashion.
The supply chain management of zara is top into four categories as shown below. The speed at which raw materials are turned into clothing allows the company to ship more often and in small batches, limiting the distribution for every shop to the bare necessity. This has necessitated that they implement new and computerized methods of supply chain management scm. Digitalization of zara and fast fashion technology and. You may have heard about the importance of good supply chain management scm, especially for a multinational firm. The best feature of zara supply chain management is that it takes maximum five to six weeks to deliver the product to the customers as compare to its competitors which deliver the final product in five to six months garcia. Zaras senior managers have stayed the course and resisted.
Its customercentric services, leading speed, customized technology, logistics, vertical integration and economies of scale grasped from its parent company, inditex, its are the key to its success. Many other retailers have such long supply chain lead times that for them it would seem a lost cause for them to even try and respond to a sales report. Rethinking their supply chain strategy, zara will face. However, in recent years, with the trend of the retail market is beginning to slump and rising consumer demand, zara lack of furtherinnovation in supply chain management. W e try to explain how zara s integrate d approach to supply chain management optimizes the entire chain instead of focusing on singular part s. The business world is that of supply chain management, which deals with every aspect of product development and distribution. Comparative study of supply chain management offast. Jun 04, 2018 classic green supply chain, mohamed ogbi, schoeller industries, supply chain management, zara june 4, 2018 the system of activities that take place within the time when products are produced up to when they are delivered to the market for sale is referred to as supply chain li 2009, p. Strategic supply chain management of zara fashion store. Supply chain management scm is the success factor in fast. Zara s concept of supply chain management highly favors its pursuit of excellence in the market. All these facts play a key role in the new relationship between retailers, suppliers and consumers. Zara clothing company supply chain business logistics. The secret to zara s competitive advantage is its supply chain.
Nov 12, 2015 through its just in time or lean business model, zara breaks the fashion supply chain rules by holding low stock and updating its collections continuously. Operations management of inditex and its retail zara. Below, youll find a definition and brief explanation of this business concep. Supply chain management scm is the process of shepherding materials through the many phases of a companys opera. Zara has attained the main objective of ensuring timely delivery of products to enduser at affordable prices and complete customer satisfaction. However, technology can play an important role in supply chain management and heinzs. Zara s supply chain management analysis provides deeper understanding of internal value chain. The best feature of zara supply chain management is that top takes maximum five to six weeks to deliver the product to the customers as compare to its competitors which deliver the final product in five to six links garcia. The result is a superresponsive supply chain exquisitely tailored to zara s business model. Electronic supply chain management is the method of managing a supply chain online. Twice a week, at precise times, store managers order clothes, and twice a week, on schedule, new garments arrive. Supply chain management,multinational corporations,organizational change,competitive advantage format type filter. Biggest strength of the organization is its goods are delivered within 24 hours of the receipt of the order on europe and about 40 hours in other locations viardot 2015.
Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zara s current supply chain strategy challenge 3 craft a future. Zaras fashion retail supply chain strategies supply. Zara is the flagship company of inditex, the global spanish fashion retailer inditex, 2009. This case study has the objective of study zara s strategies, from their supply chain until their marketing and communication strategies, and the strategy in the physical stores versus at the online store. Its customercentric services, leading speed, customized technology, logistics vertical integration and economies of scale grasped from its parent company, inditex, its are the key to its success.
How zara fashions its supply chain emerald insight. Firstly, apparel companies have become international in scope. Almost 40, products are designed every year out of which 10, are selected for production. In 2002, accenture a global management consulting, technology services and outsourcing company published an article by roger w. It takes the concept of electronic business ebusiness and marries that with supply chain management scm. Supply chain management is a conscious effort to run supply chains in the most efficient and effective way possible. The largest spanish clothes company introduction zara spanish.
The retailing success of zara can be partly attribute ted to its excellent supply chain management. It further entered into new markets in stockholm and started its new line of production. Supply chain management is the process ofoordinating the different phases of moving materials through the production process. The case study analyses the strategic, operational and supply chain processes that have contributed to the success of zara s retail operation. Nov 04, 2020 inventory management and centralized logistics are also an important part of zara s unique supply chain system. By searching on the efficient supply chain of zara which is the well. Nov 16, 2017 zara is obvious example for it by managing these tradeoffs efficiently.
Viardot 2015 discussion of zara s supply chain management. A supply chain also includes the organizations and processes that create and deliver products, information, and services to end. Keywords supply chain management, agile supply chain, zara case study analysis paper type case study analysis introduction it is becoming clear that the changed conditions in the global marketplace demand a much more agile response from the organizations and their partners in the supply chain. This research on the european apparel industry emphasizes the economic and supply chain aspects of zara s operation. Logistics management in retail manufacturer zara report. Supply chain management apparel industry case study. The ongoing impact of covid19 on global supply chains. Introduction supply chain is defined as the global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution and cash. Pdf supply chain management of zara mona singh academia. In this section we will be explaining about the techniques that zara uses for its supply chain management. Supply chain in the readymade garments industry zara case study dr. The supply chain management of zara strengths and weaknesses.
The supply chain of zara involves frequent communication between its suppliers, fashion designers, factories and store managers. A comparison of zara supply chain management vs schoeller. Zara s supply chain management practices based on the feedback from the stores, the store specialists provided the designers with an outline of the new styles, designs, and fabric as demanded by the stores. Nov 21, 2017 in the coming year, the percentage may rise even higher. Exploring the international fashion supply chain and. Scor supply chain operations reference model is a process reference model designed by the scc supply chain council a nonprofit organization that manages all official standards for supply chain management implementation and diagnostics. Evaluating effective supply chain management in zara. Zara s vertically integrated supply chain having a well operated chain of supply has increasingly become a critical element for companies to possess. Zara supply chain case study pdf zaras supply chain. Logistics management of zara a case study progressive. Zaras strategic capabilities and value chain analysis. Supply chain in the readymade garments industry zara case. Gordon chibroski portland press herald getty images there are a growing number of software s. Quick response to demand zara follows a pull model in their inventory and supply chain management.
It laid its foundation stone by selling clothes for women in sweden in 1947. Mba supply chain management delaware valley university. The secret behind zara and uniqlos supply chain models. Research on innovation supply chain management in fast. Jun 14, 2019 the value chain map for the zara company can be designed with the help of socr racetrack. It has an efficient supply chain management due to its use of information technology that supports a horizontal supply chain management. Search programs the world of big business and international industry will never become less complicated. Supply chain management apparel industry case study supply chain is the oversight of materials, information, and finances as they move. The success of the zara, which has become a successful fast fashion company in spain, has built a strong information exchange system with every part of its supply chain. Zara makes sure that each element of the supply chain network adds value to the entire. The council of supply chain management professionals cscmp defines.
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