Designmethodologyapproach zaras case studies and literature published from. Zaras supply chain management practicesoperationscase. The various learning from zaras supply chain management has also. 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. 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. Viardot 2015 discussion of zaras supply chain management. Keywords supply chain management, agile supply chain, zara case study.
This presentation talks about the agile strategies followed by zara. Integrated supply chain management iscm program at the massachusetts institute of technology mit conducted a delphi study with more than 30 supply chain experts from industry, academia, and. Zara supply chain analysis the secret behind zaras retail success. Nov 14, 20 for zara, its supply chain is its competitive advantage. M based on 20002001 figures, kasra ferdows zara avoids building inventories in any part of its supply chain from raw materials to end user. The key to zaras success vertically integrated supply chain where design, production, distribution, and retailing were integrated. Pdf supply chain management of zara mona singh academia.
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. Jan 22, 2017 zaras supply chain links from supplier to manufacture to distributor to stores and to customers are tighter than many other companies because its products turn over more frequently. Oct 27, 2015 7 rules of fashion supply chain management lessons to contact the author of this entry please me email at. Study the design, production and distribution processes of zara. 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. Zaras case study analysis case analysis, agile supply chain. Master of engineering in logistics and supply chain management. 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. This case study and supply chain model is based on data from articles listed in the bibliography below. Cscmps supply chain quarterly, tower square, number 4, 500 e. Effective and efficient techniques of zara s supply chain model.
Sc operational practices supply chain strategy think of the supply chain strategy as a bridge between business strategy and sc operations. Zaras case study analysis case study solution, company. Supply chain practices of zara august 31, 2009 institute of management technology, nagpur pgdm 20082010 supply. The implications of these effects for supply chain management are numerous and important. Pdf the economic value of a sustainable supply chain. It has done for fashion what ikea did for furniture, filling the gap between hypermarket and designer clothing in a very desirable way. 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. Zaras organizational culture and structure mswpg7212. Explain the supply chain principles and best practices you used to. By utilizing the available resources with utmost concern then, one can definitely succeed in business.
Business and management submitted by nindamartha words 1670 pages 7. Some of zaras practices may be directly applicable only in hightech or other industries where product life. In 2012, inditex, ortegas parent company made up of zara and other retail concepts and. Zaras agile supply chain free download as powerpoint presentation. If you have any concerns as to the accuracy of anything posted on this site please send your concerns to peter carr, programme director, social media for business performance. The company employs a philosophy of lean inventory across its supply chain ensuring that all resources are maintained at lean levels from the finished. Zara s case study analysis case analysis, agile supply chain. Founded in 1975, zaras parent, inditex, has become a leading global apparel retailer. Zaras supply chain and operations management term paper. Zaras expanding global reach could finally put its iberian peninsulabased ecosystem to the test.
Spains biggest clothing brand set the trend with its vertically integrated supply chain and fast fashion the pace of zaras supply chain has so beguiled analysts that company executives are at. 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. Challenges and recommendations louna sbou term paper business economics business management, corporate governance publish your bachelors or masters thesis, dissertation, term paper or essay. Spanish clothier zara turns the rules of supply chain.
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. Nov 14, 20 the key to zaras success vertically integrated supply chain where design, production, distribution, and retailing were integrated. Oct 02, 2016 zara is a spanish fashion chain stores, which is one of the largest international fashion brands of inditex. Through initiatives such as sustainable power utilisation, 600 tons of carbon was removed from the firms supply chain over a threeyear period to 20, with the added advantage of massive cost reductions, according to its chief supply chain officer. B clothing industry supply chain concepts 1 agility agile supply chain is a networks ability to. Zara is the flagship company of inditex, the global. In contrast to zaras situation, our newly collected data shows that most supply chain organizations are finding it difficult, if not impossible, to see and. As described in a case study of zaras supply chain, the company is vertically integrated, controlling most of the processes in its supply chain. Zara s case study analysis case study solution, company information this paper is about the company, zara, which is a fashion label which was established in the year 1975 by the spanish group, inditex, w.
The file will be a locked pdf file, with a do not copy watermark. Many other retailers have such long supply chain lead. Zaras supply chain management practices operations case. On the average, 50% of its products are manufactured in spain.
The key to zaras ability to establish an agile supply chain rests on the following unique approaches. All these are derived from the zara global distribution center which is known as the cube. The successful implementation of an integrated supply chain strategy. 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. The case of spanish fast fashion retailer inditexzara article pdf available in international journal of business and management 5. Like everything else in the mcdonalds approach to supply chain management, kpis are in place to provide insight and support alignment, not to lord it over suppliers. Zara excels in marketing and supply chain management. This definition doesnt reveal whether a customer request is. 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. Supply chain and risks management definitions 35 b. Zara is a spanish fashion chain stores, which is one of the largest international fashion brands of inditex. Rethinking their supply chain strategy, zara will face. It begins by redesigning couture trends for the mainstream market and then leads to manufacturing, distribution and then retailing. 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 three weeks.
On the average, 50% of its products are manufactured in spain, 26% in the rest of europe and 24% in asian countries. Zara needs a good system to perform operation than any other companies. Zaras strategic capabilities and value chain analysis. Arguments are made based on marketing, finance, and production theories that by engaging in socially.
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. For zara, its supply chain is its competitive advantage. Supply chain practices at zara retail fashion scribd. The supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. Nov 28, 2016 of course unilever also recognises the sustainability impacts of its internal supply chain activities.
Strategic techniques that differentiate zara from other fashion brands. Organisational culture and management mswpg7212 uploaded by. This week, supply chain legend zara once again posted excellent results, with 2015 sales and profits both up by 15% over 2014. Supply chain management project nike shoes duration. It has done for fashion what ikea did for furniture, filling the gap between. This definition doesnt reveal whether a customer request is for a product or a service. Supply chain practices of zara august 31, 2009 institute of management technology, nagpur.
Zara supply chain management case solution and analysis. 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. 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. Risk identification and assessment in zaras supply chain a. Study the design, production and distribution processes of. Biggest strength of the organization is its goods are delivered. The vertical integration of our production system allows us. 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. They are a successful, innovative firm whose competitive advantage really lies with their operations. Zaras supply chain management 2015 6060211 educational. Inditex zaras superresponsive supply chain reduces bullwhip effect. But when discussing services, sometimes the supply chain is referred to as a value chain.
In this respect, zara has a predecessor in the automative industry. Zara supply chain management mona singh 14868329 aut university mepm 2015 zara supply chain management table of contents 1. Rethinking their supply chain strategy, zara will face three. 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. This paper deals with the study of supply chain management and logistics of zara, a fashion retailer for boosting their customer value. Zara supply chain management case solution and analysis, hbr. Originalityvalue this paper uses the findings of other researchers as a measure of the achievements of zara against academic theory. Zaras successful supply chain management strategy social. Sc operational practices supply chain strategy think of the supply chain strategy as a bridge. Rethinking their supply chain strategy, zara will face three challenges. Zara s case study analysis case solution,agile supply chain. The economic rationale to operate a global supply chain in a sustainable manner is developed. Zaras fast fashion edge arteixo is a small town in northwestern spain near the atlantic, surrounded by fishing villages.
In order to properly analyze the chain of supply for zara, for ascertaining the keys to success, certain aspects must be dissected, for example. B clothing industry supply chain concepts 1 agility agile supply chain is a networks ability to consistently identify and capture business opportunities more quickly than its rival do according to calfang 2009. As a consequence, zara does not have lots of excess inventory, nor does it need to. Instead, you can borrow a page from zaras playbook.
Zara excels in marketing and supply chain managementzara. Zaras unique supply chain management social media for. Strengths and weaknesses 9 bibliography 10 appendix 11 i. Supply chain strategy the purpose of this report is to compare the supply chains of zara and benetton, two global players of. It is rare to come across excess stock in any of the companys warehouse or store. Zaras overarching strategy is achieving growth through diversification with vertical integrations. Among key aspects in the success of zaras supply chain management is its effective management of inventory. Its well constructed supply chain management strategy. So how has zara been able to standout from all other fashion competitors. Apr 30, 2017 supply chain management project nike shoes duration.
Supply chain practices at zara free download as pdf file. This presentation talks about the agile strategies followed by. Zaras procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes. Zara has attained the main objective of ensuring timely delivery of products to enduser at affordable prices and complete customer satisfaction. In zaras case, money that would have been channelized into advertising and marketing was utilized towards creating a lean and agile supply chain. 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. Toyota, famous for its lean manufacturing model, was one of the first companies to look inward and optimize its internal. Therefore, the strategy of fast fashion make zara successful and their operation management and supply chain are their competitive advantages. Zaras supply chain management model secret behind zara. Instead, the value of zaras brand comes from its supply chain and its ability to add value to every stage of the supply chain porter, 1985. Production is then increased or decreased in theflexible production facilities. Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zaras current supply chain strategy challenge 3 craft a future.
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