This research on the european apparel industry emphasizes the economic and supply chain aspects of zara s operation. The key to zaras ability to establish an agile supply chain rests on the following unique approaches. Viardot 2015 discussion of zaras supply chain management. Supply chain management of zara linkedin slideshare. We regularly share the complete list of our supply chain at all levels and processes with industriall, including purchasing volumes and sustainability compliance levels.
And, in keeping with zaras distinctive edge, each of these steps makes a decisive departure from the industry norm. It deals with suppliers, with suppliers suppliers, with customers and sometimes. Zaras supply chain advantages and disadvantages business essay. 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 procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes. Inditexzaras superresponsive supply chain reduces bullwhip effect, orderto delivery lead time to stores, ensures lean inventory and high level. Responsiveness and collaboration in the fashion supply chain. These strong numbers are happening at a scale any business leader. 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. Zaras expanding global reach could finally put its iberian peninsulabased ecosystem to the test. Glasersegura, phd slides from introduction to supply chain management, by david simchilevi, philip kaminsky, and edith simchilevi. Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zaras current supply chain strategy challenge 3 craft a future. Zaras expanding global reach could finally put its iberian peninsulabased ecosystem to. Zara s procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes. Zara has already used technology in its manufacturing plants, where complex processes are required to be simplified but such decisions to which extent we may incorporate technology in process and tools are to be taken after concise.
Zara supply chain analysis the secret behind zaras retail success. Operations and supply chain strategy 4 dmitry ivanov a, alexander tsipoulanidis a and jorn schonberger b a department of business administration, berlin school of economics and law, ber lin. It is a popular fashion designing and manufacturing company, which has been declared as the most efficient market responding enterprise. Scribd is the worlds largest social reading and publishing site. Responsiveness and collaboration in the fashion supply chain a thesis submitted to the university of manchester for the degree of mphil in responsiveness and collaboration in the fashion supply chain, to the faculty of engineering and physical sciences 2012 heba ahmad school of materials. Zara is present in countries in europe, america, and africa, with more than 1400 stores in 69 territories but with the majority of them in spain.
Inditexzaras superresponsive supply chain reduces bullwhip effect, ordertodelivery lead time to stores, ensures lean inventory and high level. Zara has successfully introduced a new, unique business model into the apparel manufacturing and retail. Feb 11, 2017 zara is a clothing line a chain of stores from spain that belongs to the inditex group, a spanish multinational textile producer, and distributor. Zara azel francebih article pdf available in european researcher 4743. Originalityvalue this paper uses the findings of other researchers as a measure of the achievements of zara against academic theory. Pdf agile supply chain zara case study analysis shaoyu. They have changed the supply chain and gone through a series of problems that takes the company years back. Zara supply chain management case solution and analysis, hbr. Inditex has enjoyed doubledigit sales growth due to a logistics and business model that allows the retailer to get designs into stores faster. In this paper, we consider fashion supply chain management through cost and time minimization, from a network perspective and in the case of multiple fashion products. Perhaps the greatest complement being paid to uniqlo and zara is that some of their rivals are starting to follow their example. 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. Effective and efficient techniques of zara s supply chain model. Find out how zara effectively fulfills everchanging customer demands with a supply chain that drives efficiency and responsiveness.
Zaras successful supply chain management strategy social. 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 is the most compassionate supply chain that ships the latest products to the stores globally twice a week. How zara fashions its supply chain emerald insight. May 02, 2019 in zara store, we can find clothing for men, women, and children. The case study analyses the strategic, operational and supply chain processes that have contributed to the success of zaras retail operation. Zara is indeed an unique brand that, instead of creating an exclusive brand, has created an excellent shopping experience and a new process. Rethinking their supply chain strategy, zara will face three. The report takes into consideration the profile of the company and the characteristics of fashion industry, the time cycle of zaras products, what is being offered to companys customers and how zara segments its customer. The case study analyses the strategic, operational and supply chain processes that have contributed to the success of zara s retail operation. Zara supply chain free download as powerpoint presentation. In zara store, we can find clothing for men, women, and children. However, empty shelves in its stores were testimony.
The vertical integration of our production system allows us to place a garment in any store around the world in a period between two to three weeks. Strategic techniques that differentiate zara from other fashion brands. Zara case study creating value chain with supply chain. Zara is one of the best examples of supply chain success. Oct 27, 2015 zara and supply chain management one day its in and the next day its out a popular phrase that often resounds when the apparel industry comes to mind. This week, supply chain legend zara once again posted excellent results, with 2015 sales and profits both up by 15% over 2014. Supply chain analytics for perishable products, springer 20 slides from principles of supply chain management. Zaras unique business model is driven by its supply chain capabilities. The goal of this report is to understand the supply chain practice followed by the fast fashion company zara. Zara makes sure that each element of the supply chain network adds value to the entire. So how has zara been able to standout from all other fashion competitors. How zara operates the most agile supply chain in the world there are 5 crucial phases in zaras supply chain procurement, supply, production, manufacturing, distribution. This case study and supply chain model is based on data from articles listed in the bibliography below. Nov 14, 20 the key to zaras success vertically integrated supply chain where design, production, distribution, and retailing were integrated.
The retailing success of zara can be partly attribute ted to its excellent supply chain management. The key to zara s ability to establish an agile supply chain rests on the following unique approaches. This research on the european apparel industry emphasizes the economic and supply chain aspects of zaras operation. Zaras unique supply chain management social media for. Nov 14, 20 for zara, its supply chain is its competitive advantage. It begins by redesigning couture trends for the mainstream market and then leads to manufacturing, distribution and then retailing. Rethinking their supply chain strategy, zara will face. 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. Communication to industriall global union of the inditex supply chain. Supply chain management scm is the success factor in fast fashion business. Fashion supply chain management through cost and time.
Zaras supply chain management model secret behind zara. Effective and efficient techniques of zaras supply chain model. Zara is a wellrenowned name in the field of clothes and accessories, all across the world. Pdf supply chain management of zara mona singh academia.
It goes without saying that the last thing sainsburys needed was for its new, automated supply chain to fail. Both uniqlo and zara took ideas new to the fashion supply chain from the automotive supply chain and therefore innovated, challenging old paradigms in there sector. Zara supply chain management mona singh 14868329 aut university mepm 2015 zara supply chain management table of contents 1. Its well constructed supply chain management strategy. Hottest trends in the markets, first and fast fashion, diversified and integrated supply chain models, inventory optimization, solid distribution web, customer database management, value chain have brought the glory to zara.
Zara has an extraordinary supply chain, which gives them a highly competitive advantage. Based on the current consumer trends and the requirements, zara releases the products and supply them accordingly. For zara, its supply chain is its competitive advantage. Pdf agile supply chain zara case study analysis shaoyu lv. The key to zara s success vertically integrated supply chain where design, production, distribution, and retailing were integrated. Competency mapping and capacity building through indepth staff training initiatives made zara to stand away from the crowd. 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. The secret behind zara and uniqlos supply chain models. With ever changing trends it is hard to predict the market and forecast the required raw materials and supplies.
799 20 941 1145 646 481 1332 539 609 1360 1010 412 947 644 1027 1111 1115 357 851 272 672 103 575 1410 1376 1477 119 165 1180 208 279 441 674 976 1488 43 490 1144 111 289 1016 1086 1393 840 22 1222 575 634 1170