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. Evaluating effective supply chain management in zara. 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 supply chain analysis the secret behind zaras retail success. Pdf supply chain management of zara mona singh academia. May 02, 2019 in fact, supply chain management is the wide range of activities that are essential to plan, manage and implement the flow of a product. Zaras supply chain management practicesoperationscase. The activities involved in supply chain management range from the development of products, sourcing, logistics, as well as the production process and. 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. 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.
These strong numbers are happening at a scale any business leader. Supply chain management encompasses the planning and management of all the activities involved in designing, sourcing and manufacturing, distribution, retailing and logistics. Rethinking their supply chain strategy, zara will face three. Zaras concept of supply chain management highly favors its pursuit of excellence in the market. Arguments are made based on marketing, finance, and production theories that by engaging in socially.
Want to manage your supply chain as efficiently as zara. Keywords supply chain management, agile supply chain, zara case study. Supply chain performance in the apparel industry zara. This makes it possible for store managers to order and receive the. Updated july 25, 2018 zara changes its clothing designs every two weeks on average, while competitors change their designs every two or three months. Study the design, production and distribution processes of zara. It begins by redesigning couture trends for the mainstream market and then leads to manufacturing, distribution and then retailing. Management of risks that are imposed by unethical practices in supply chain.
Zaras characteristics of vertical supply chain zara is a vertically integrated retailer. Melnyk is a professor of operations and supply chain management in the department of supply chain management. Zara case study pic introduction the history of zara started in 1975, when the first store has been opened in spain. Designmethodologyapproach zaras case studies and literature published from. Apr 14, 2014 one day its in and the next day its out a popular phrase that often resounds when the apparel industry comes to mind. It also includes coordination and collaboration with channel partners which can be suppliers, intermediaries, third party service providers and customers ayers. Supply chain practices of zara august 31, 2009 institute of management technology, nagpur pgdm 20082010 supply. Its well constructed supply chain management strategy.
The file will be a locked pdf file, with a do not copy watermark. In spain, zara has its major distribution center from where they process all the items of clothing. Oct 26, 2017 zaras supply chain management practices study the design, production and distribution processes of zara this case discusses the unique supply chain management practices of spanish garments retailer zara, which enabled it to gain competitive advantage over other fashion retailers in the world. Sep, 2014 a collection of resources and commentary providing an introduction to supply chain management and related systems for students, practitioners, and anyone else interested in learning more about how to design, manufacture, transport, store, deliver, and manage products. If your order is placed outside our working hours or on a holiday, the case study will be emailed to you on the next working day. Zara supply chain management mona singh 14868329 aut university. The fashion industry is known to run on a high degree of uncertainty. The commitment to ensure safe and healthy work environments to promote the health and wellbeing of workers is key to inditexs supply chain management. In fact, supply chain management is the wide range of activities that are essential to plan, manage and implement the flow of a product. Proposal of improvement in supply chain management. Zaras supply chain management model secret behind zara.
Zaras unique business model is driven by its supply chain capabilities. 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. Strategic techniques that differentiate zara from other fashion brands. We offer zara s case study help at most affordable prices through our proficient 24x7 service in the field of case study help. Sc operational practices supply chain strategy think of the supply chain strategy as a bridge. It carries about 11,000 distinct items per year in thousands of stores worldwide compared to. Zara s vertically integrated supply chain system enabled the company to place the latest designs in any store across the world within a period of two to. An effective supply chain leads to a smooth process of continuous, uninterrupted production or service for the supply chain to be effective, all the limiting factors of the process are to be dealt in a thriving manner and an alternative should be identified against it to reduce any lead time. If you purchase multiple copies of a case study, a pdf file with a license to print the number of copies will be emailed to you, within two hours after the successful completion of the transaction.
It usually includes gathering the required raw materials, producing the material and finally distributing it to the customer in the final stage. The following work demonstrates how the strategy adopted by zara can. Zaras vertically integrated supply chain system enabled the company to place the latest designs in any store across the world within a period of two to three weeks. Sustainable management of the supply chain inditex. Fashion forward zaras supply chain strategies zara. Zara supply chain management case solution and analysis, hbr.
A collection of resources and commentary providing an introduction to supply chain management and related systems for students, practitioners, and anyone else interested in learning more about how to design, manufacture, transport, store, deliver, and manage products. So how has zara been able to standout from all other fashion competitors. It shows that operation management is one of major activities for zara to support its fast fashion system. Zara use such system to differ substantially from its competitors. This research on the european apparel industry emphasizes the economic and supply chain aspects of zaras operation.
Because zara is a private company, specific details of the zara business model and supply chain can be difficult to verify. The companys approach is just another example of why streamlined operations and supply chain. Unlike similar apparel retailers, zara controls most of the steps on the supplychain. Nov 16, 2017 it shows that operation management is one of major activities for zara to support its fast fashion system. On the average, 50% of its products are manufactured in spain, 26% in the rest of europe and 24% in asian countries. Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zaras current supply chain strategy challenge 3 craft a future.
Old navy, however, has been singled out for a quicker supply chain than its sister brand, gap. The companys owner, amancio ortega, accumulated 340 million euros according to 2001 datas, which is a remarkable growth if compared with other companies. We try to explain how zaras integrated approach to supply chain management optimizes the entire chain instead of focusing on singular parts. This presentation talks about the agile strategies followed by zara. It enhances costsavings, customer services and targeting purposes in. However, zaras business model has positioned the retailer to avoid such a fate. Zara use vertically integrated supply chain, where different elements are integrated like design, production, distribution and retailing how zara fashions its supply chain, 2005. We offer zaras case study help at most affordable prices through our proficient 24x7 service in the field of case study help. 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. Supply chain management encompasses case planning and management management all the activities involved in designing, sourcing and manufacturing, distribution, retailing and logistics. Viardot 2015 discussion of zaras supply chain management. Pdf the economic value of a sustainable supply chain. Moreover, supply chain management is more of a conscious effort held by a company with an aim of developing and running supply chains effectively and in an efficient way anderson et al 1997. Presenled by akrt bajaj shraddha gupta zaras profile zuru is lie iiugsiip ciuin slore oi ndilex group owned by spunisi lycoon amuncio orlegu zuru iirsl opened in in 1q.
Dec 07, 2011 this fast fashion system depends on a constant exchange of information throughout every part of zaras supply chainfrom customers to store managers, from store managers to market specialists and designers, from designers to production staff, from buyers to subcontractors, from warehouse managers to distributors, and so on. As described in a case study of zaras supply chain, the company is vertically integrated, controlling most of the processes in its supply chain. 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. It is rare to come across excess stock in any of the companys warehouse or store.
The key to zaras ability to establish an agile supply chain rests on the following unique approaches. The case study analyses the strategic, operational and supply chain processes that have contributed to the success of zaras retail operation. This case study and supply chain model is based on data from articles listed in the bibliography below. Once the products are designed in the companies, they take at least a couple of weeks to reach the outlets. Zara is the most compassionate supply chain that ships the latest products to the stores globally twice a week. Inventory management, efficient business model and centralization of logistics work to show zaras concept of strategic management. We try to explain how zaras integrated approach to supply chain management.
Showcasing real solutions learned from true success stories like these and many others, the supply chain revolution provides for business leaders the secrets to succeeding. This helps reduce waste, as you can reuse fabric but not resell a piece of clothing that didnt meet the expectations. Arguments are made based on marketing, finance, and. Zaras business model via its operation strategy duration. Originalityvalue this paper uses the findings of other researchers as a measure of the achievements of zara against academic theory. Oct 31, 2017 zara s business model via its operation strategy duration. Zaras supply chain success story zara is a spanish fashion clothing manufacturer and retailer, formed in the 1970s it is known that only two weeks are required for zara to complete the development and shipment of a new product to its stores, which outweighs the average of fashion industry of six months, thanks to the. Zara supply chain case study pdf zaras supply chain. Zaras procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes. Zaras successful supply chain management strategy social. Melnyk is a professor of operations and supply chain management in the department of supply chain management, michigan state university. Inventory management and centralized logistics are also an important part of zaras unique supply chain system. Zaras unique supply chain management social media for.
Best practices supply chain risk management supply chain resilience all topics. Effective and efficient techniques of zaras supply chain model. Key supplychain activities include production planning, purchasing, materials management, distribution, customer service, and sales. Understanding supply chain resilience supply chain 247. However, zara s business model has positioned the retailer to avoid such a fate.
Effective and efficient techniques of zara s supply chain model. While competitors were shutting stores, zaras highly responsive supply chain made it the most valued company in the retail space and its founder, the richest man in europe. Rethinking their supply chain strategy, zara will face. It also includes coordination and collaboration with channel partners which can be suppliers, intermediaries. Zara supply chain management case solution and analysis. Mcconnell chaired professor of business administration in the department of supply chain management at michigan state. Rethinking their supply chain strategy, zara will face three challenges. This case discusses the unique supply chain management practices of spanish garments retailer zara, which enabled it to gain competitive advantage over other fashion retailers in the world. 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 key to zaras success vertically integrated supply chain where design, production, distribution, and retailing were integrated. The key to zara s ability to establish an agile supply chain rests on the following unique approaches. Among key aspects in the success of zaras supply chain management is its effective management of inventory. With ever changing trends it is even harder to predict the market and hence forecast the required raw materials and supplies.
Zara has attained the main objective of ensuring timely delivery of products to enduser at affordable prices and complete customer satisfaction. This commitment can be seen in our code of conduct and its compliance is evaluated by different audits. 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. It has been followed by several other stores all over the world. Zaras supply chain management practices operations case. The case of spanish fast fashion retailer inditexzara article pdf available in international journal of business and management 5. With ever changing trends it is hard to predict the market and forecast the required raw materials and supplies.
Jan 08, 2018 inventory management, efficient business model and centralization of logistics work to show zaras concept of strategic management. This week, supply chain legend zara once again posted excellent results, with 2015 sales and profits both up by 15% over 2014. Nov 14, 20 the key to zaras success vertically integrated supply chain where design, production, distribution, and retailing were integrated. Explain the supply chain principles and best practices you used to solve the. Keywords supply chain management, agile supply chain, zara case study analysis paper type case study analysis. Presenled by akrt bajaj shraddha gupta zara s profile zuru is lie iiugsiip ciuin slore oi ndilex group owned by spunisi lycoon amuncio orlegu zuru iirsl opened in in 1q. Supply chain management of zara linkedin slideshare. 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. The economic rationale to operate a global supply chain in a sustainable manner is developed.
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. In order to properly analyze the chain of supply for zara, for ascertaining the keys to success, certain aspects must be dissected, for example. Zaras agile supply chain free download as powerpoint presentation. Get the most appropriate analysis of zara case study related to supply chain management from our management experts. Performance magazine supply chain performance in the. Zara s procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes.
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. Jan 23, 2018 inventory management and centralized logistics are also an important part of zaras unique supply chain system. A supply chain the flow of physical goods and associated information from the source to the consumer. 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. Study the design, production and distribution processes of. Zaras supply chain management practices study the design, production and distribution processes of zara this case discusses the unique supply chain management practices of spanish garments retailer zara, which enabled it to gain competitive advantage over other fashion retailers in the world. Supply chain management scm is commonly studied in marketing theories and practices. Supplychain management scm the total businessprocess concept of capturing synergies by attaining excellence in integrating and managing a firms network of relationships among and between all of its supply chain members.
29 1247 148 838 86 1324 1340 1006 511 908 653 439 1403 15 263 960 227 52 1273 1125 208 1528 887 1016 348 1015 435 1281 553 311 554 456 548 1054 1107 197 1460 50 531 747 25 1345 1144 177 1476 1464 987 1099