It is the flagship chain store of the inditex group. 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 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 is a clothing line a chain of stores from spain that belongs to the inditex group, a spanish multinational textile producer, and distributor. 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.
However zaras success story lies in its unique break through supply chain strategy by which it has differentiated itself from its competitors. Based on the current consumer trends and the requirements, zara releases the products and supply them accordingly. Wielandwallenburg, 2011 supply chain management scm is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Purpose to analyze zara s success due to its supply chain how it correlates with valuecreation for the company. Effective and efficient techniques of zaras supply chain model. We work with a system that allows us to control and trace our garments in order to guarantee that our suppliers are. Nov 14, 20 for zara, its supply chain is its competitive advantage. For zara, its supply chain is its competitive advantage. 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 supply chain analysis the secret behind zaras retail success. Inditexzaras superresponsive supply chain reduces bullwhip effect, orderto delivery lead time to stores, ensures lean inventory and high level. Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zaras current supply chain strategy challenge 3 craft a future. Zaras supply chain management model secret behind zara.
Perhaps the greatest complement being paid to uniqlo and zara is that some of their rivals are starting to follow their example. Pdf agile supply chain zara case study analysis shaoyu. The secret behind zara and uniqlos supply chain models. It begins by redesigning couture trends for the mainstream market and then leads to manufacturing, distribution and then retailing. A zara supply chain strategy was the key term of my research and was an important part of my theoretical focus on supply chain strategy. 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. Supply chain management supply chain management managing complex and dynamic supply and demand networks. This affords inditex comprehensive control of its entire supply chain, and minimizes the possibility of unauthorised outsourcing.
L ouis grestner junior once said that everything starts with the customer. This research on the european apparel industry emphasizes the economic and supply chain aspects of zara s operation. Zara is one of the best examples of supply chain success. 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 has achieved this despite proudly claiming that they have never spent a penny on advertising. Zara azel francebih article pdf available in european researcher 4743. And, in keeping with zaras distinctive edge, each of these steps makes a decisive departure from the industry norm.
Leanne copeland and the whole team of zara at manchester exchange square, farida kaikobad. Zara is a wellrenowned name in the field of clothes and accessories, all across the world. Supply chain management scm is the success factor in fast fashion business. Download as pptx, pdf, txt or read online from scribd. Zaras unique supply chain management social media for. 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. Zaras strategic capabilities and value chain analysis. 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.
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 aim of this research is to give a clear picture of the theoretical research and to be able to manage analysis of the zara case study showing how company purchase and which supply chain strategy perspective. Zaras concept of supply chain management highly favors its pursuit of excellence in the market. 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. This week, supply chain legend zara once again posted excellent results, with 2015 sales and profits both up by 15% over 2014. Company profile zara is the flagship chain store of inditex group owned by spanish tycoon amancio ortega hq in coruna, spain. The parent company, inditex, has two dozen manufacturing plants in spain and more than 1,160 stores. The case study analyses the strategic, operational and supply chain processes that have contributed to the success of zaras retail operation. Strategic techniques that differentiate zara from other fashion brands. Integration of supply chain management and marketing. 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 free download as powerpoint presentation. Find out how zara effectively fulfills everchanging customer demands with a supply chain that drives efficiency and responsiveness. Social media comments about products, services, or companies offer very valuable information for the supply chain and associated processes.
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. 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. Pdf agile supply chain zara case study analysis shaoyu lv. Scribd is the worlds largest social reading and publishing site. It deals with suppliers, with suppliers suppliers, with customers and sometimes. They have changed the supply chain and gone through a series of problems that takes the company years back.
The spanish fast fashion giant has been making headlines as of late after such notes began appearing on garments in its stores in istanbul alerting consumers that it has not compensated an array of garment workers within its supply chain. These strong numbers are happening at a scale any business leader. Fashion supply chain management through cost and time. This study suggests that if lindex focuses on the stated linkages and succeed with them, they ought to achieve optimal integration level.
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. Nov 14, 20 purpose to analyze zaras success due to its supply chain how it correlates with valuecreation for the company. Zaras procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes. Pdf supply chain management of zara mona singh academia. This case study and supply chain model is based on data from articles listed in the bibliography below. 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. May 02, 2019 in zara store, we can find clothing for men, women, and children. Supply chain performance in the apparel industry zara. Zaras expanding global reach could finally put its iberian peninsulabased ecosystem to the test. How zara fashions its supply chain emerald insight. Zara is the flagship company of inditex, the global spanish fashion retailer inditex, 2009. Will zaras latest supply chain crisis actually cause. Effective and efficient techniques of zara s supply chain model. The case of spanish fast fashion retailer inditex zara article pdf available in international journal of business and management 5.
That is achieved by maintaining a strict control over their supply chain, and manages to fit the entire production process into a 10to15day time frame. The case study analyses the strategic, operational and supply chain processes that have contributed to the success of zara s retail operation. The key to zara s ability to establish an agile supply chain rests on the following unique approaches. 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. In the coming year, the percentage may rise even higher.
Inditex factories are supplied by more than 1800 suppliers and through higher level of integration, it has controlled costs and brought higher efficiency to its. Zara i made this item you are going to buy, but i didnt get paid for it, read tags affixed to zara garments. 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. Todays consumers are spending less on clothing and more on healthcare, electronics, leisure,travel etc and they can choose from a wide array of inexpensive products. It is a popular fashion designing and manufacturing company, which has been declared as the most efficient market responding enterprise. In zara store, we can find clothing for men, women, and children. Its well constructed supply chain management strategy. 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. Rethinking their supply chain strategy, zara will face. Zara supply chain management case solution and analysis. 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. Zara supply chain advanced concepts and future trends of scm 6 linking theoretical concepts and real life scm 9 ezra gaining competitive advantage using scm 10 managing global supply chain 12 bibliography references 12 introduction the alma of this case study is to analyze how ezra has achieved its success through various business strategies. Zara case study creating value chain with supply chain. Group 2 abhay kanwar upasna handa gaurav lochab aank dhanda.
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. This research on the european apparel industry emphasizes the economic and supply chain aspects of zaras operation. Purpose to analyze zaras success due to its supply chain how it correlates with valuecreation for the company. Rethinking their supply chain strategy, zara will face three. Supply chain management of zara linkedin slideshare. Management inventory management under conditions of certainty and uncertainty submitted by. Zara supply chain management case solution and analysis, hbr. Our supply chain respects workers and the environment. Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zara s current supply chain strategy challenge 3 craft a future. The challenge for any company is figuring out how to gather this data, consume it, respond to it, and leverage it to enhance their position in the. Competency mapping and capacity building through indepth staff training initiatives made zara to stand away from the crowd.
Over the past years zara has perfected their fast fashion model, meaning that even though the average fashion retailers take 6 months to produce garments, zara manages to do it in 3 weeks. Zara is the most compassionate supply chain that ships the latest products to the stores globally twice a week. Zaras unique business model is driven by its supply chain capabilities. With ever changing trends it is hard to predict the market and forecast the required raw materials and supplies. Zaras expanding global reach could finally put its iberian peninsulabased ecosystem to. Viardot 2015 discussion of zaras supply chain management. Zara s procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes. Mar 17, 2019 higher flexibility is a core feature of zaras supply chain. So how has zara been able to standout from all other fashion competitors. Primary activities supporting activities design how. Evaluating effective supply chain management in zara. Zaras successful supply chain management strategy social. Zara supply chain management mona singh 14868329 aut university mepm 2015 zara supply chain management table of contents 1. Originalityvalue this paper uses the findings of other researchers as a measure of the achievements of zara against academic theory.
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