Pdf the economic value of a sustainable supply chain. Supply chain and risks management definitions 35 b. Strategic techniques that differentiate zara from other fashion brands. As described in a case study of zaras supply chain, the company is vertically integrated, controlling most of the processes in its supply chain.
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. Zaras supply chain management 2015 6060211 educational. The file will be a locked pdf file, with a do not copy watermark. Zaras successful supply chain management strategy social.
M based on 20002001 figures, kasra ferdows zara avoids building inventories in any part of its supply chain from raw materials to end user. It has done for fashion what ikea did for furniture, filling the gap between. Challenges and recommendations louna sbou term paper business economics business management, corporate governance publish your bachelors or masters thesis, dissertation, term paper or essay. These strong numbers are happening at a scale any business. Nov 14, 20 for zara, its supply chain is its competitive advantage. Zara is a spanish fashion chain stores, which is one of the largest international fashion brands of inditex. Risk identification and assessment in zaras supply chain a. Supply chain practices at zara retail fashion scribd. In 2012, inditex, ortegas parent company made up of zara and other retail concepts and. 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. Founded in 1975, zaras parent, inditex, has become a leading global apparel retailer. Zaras procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes.
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. B clothing industry supply chain concepts 1 agility agile supply chain is a networks ability to. The key to zaras success vertically integrated supply chain where design, production, distribution, and retailing were integrated. This definition doesnt reveal whether a customer request is. 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. Study the design, production and distribution processes of. 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. This week, supply chain legend zara once again posted excellent results, with 2015 sales and profits both up by 15% over 2014. Supply chain practices of zara august 31, 2009 institute of management technology, nagpur pgdm 20082010 supply. Viardot 2015 discussion of zaras supply chain management. Toyota, famous for its lean manufacturing model, was one of the first companies to look inward and optimize its internal. 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. 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.
Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zaras current supply chain strategy challenge 3 craft a future. The case of spanish fast fashion retailer inditexzara article pdf available in international journal of business and management 5. It has done for fashion what ikea did for furniture, filling the gap between hypermarket and designer clothing in a very desirable way. 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. Study the design, production and distribution processes of zara. 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. 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. In this respect, zara has a predecessor in the automative industry. Organisational culture and management mswpg7212 uploaded by. Zaras case study analysis case analysis, agile supply chain. Zaras organizational culture and structure mswpg7212. Supply chain management definitions a supply chain consists of all the parties involved directly or indirectly in fulfilling a customer request.
Supply chain strategy the purpose of this report is to compare the supply chains of zara and benetton, two global players of. Nov 28, 2016 of course unilever also recognises the sustainability impacts of its internal supply chain activities. Oct 02, 2016 zara is a spanish fashion chain stores, which is one of the largest international fashion brands of inditex. Therefore, the strategy of fast fashion make zara successful and their operation management and supply chain are their competitive advantages. The implications of these effects for supply chain management are numerous and important. Business and management submitted by nindamartha words 1670 pages 7. Supply chain practices at zara free download as pdf file. 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 7 rules of fashion supply chain management lessons to contact the author of this entry please me email at. Zara is the flagship company of inditex, the global. 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. Inventory stores place orders twice per week and the supply offinished goods is matched to store demand. 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. Zara supply chain analysis the secret behind zaras retail success.
Zara has attained the main objective of ensuring timely delivery of products to enduser at affordable prices and complete customer satisfaction. Inditex zaras superresponsive supply chain reduces bullwhip effect. The key to zaras ability to establish an agile supply chain rests on the following unique approaches. Its well constructed supply chain management strategy. Nov 14, 20 the key to zaras success vertically integrated supply chain where design, production, distribution, and retailing were integrated. Sc operational practices supply chain strategy think of the supply chain strategy as a bridge between business strategy and sc operations. Instead, you can borrow a page from zaras playbook. Zara supply chain management case solution and analysis, hbr.
Want to manage your supply chain as efficiently as zara. Rethinking their supply chain strategy, zara will face three challenges. 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. Among key aspects in the success of zaras supply chain management is its effective management of inventory. Effective and efficient techniques of zara s supply chain model. Zaras expanding global reach could finally put its iberian peninsulabased ecosystem to the test. Supply chain management project nike shoes duration. But when discussing services, sometimes the supply chain is referred to as a value chain. Zara supply chain management mona singh 14868329 aut university mepm 2015 zara supply chain management table of contents 1. 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. The vertical integration of our production system allows us.
Download our free supply chain ebook to find out why. This paper deals with the study of supply chain management and logistics of zara, a fashion retailer for boosting their customer value. Zaras case study analysis case study solution, company. 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. This presentation talks about the agile strategies followed by zara. Supply chain management of zara linkedin slideshare. Spanish clothier zara turns the rules of supply chain. The various learning from zaras supply chain management has also. On the average, 50% of its products are manufactured in spain, 26% in the rest of europe and 24% in asian countries. Supply chain practices of zara august 31, 2009 institute of management technology, nagpur.
Zaras case study analysis case solution,agile supply chain. 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. Zaras supply chain management practices operations case. The company employs a philosophy of lean inventory across its supply chain ensuring that all resources are maintained at lean levels from the finished. Many other retailers have such long supply chain lead. Designmethodologyapproach zaras case studies and literature published from. 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. 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 consistently identify and capture business opportunities more quickly than its rival do according to calfang 2009. 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. Originalityvalue this paper uses the findings of other researchers as a measure of the achievements of zara against academic theory. Zaras supply chain and operations management term paper.
Supply chain planners and managers are always watching customer. Zara s case study analysis case solution,agile supply chain. 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. Zaras supply chain management practicesoperationscase.
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. The successful implementation of an integrated supply chain strategy. Zara excels in marketing and supply chain management. This presentation talks about the agile strategies followed by.
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. Zara supply chain management case solution and analysis. Some of zaras practices may be directly applicable only in hightech or other industries where product life. 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 is rare to come across excess stock in any of the companys warehouse or store.
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. Apr 30, 2017 supply chain management project nike shoes duration. Zaras strategic capabilities and value chain analysis. 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. The five dimensions of supply chain agility strategy. Zara s case study analysis case analysis, agile supply chain. Strengths and weaknesses 9 bibliography 10 appendix 11 i. On the average, 50% of its products are manufactured in spain. Zara needs a good system to perform operation than any other companies.
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. Pdf supply chain management of zara mona singh academia. This definition doesnt reveal whether a customer request is for a product or a service. Rethinking their supply chain strategy, zara will face. Zaras agile supply chain free download as powerpoint presentation. Keywords supply chain management, agile supply chain, zara case study. The supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. Zara excels in marketing and supply chain managementzara. For zara, its supply chain is its competitive advantage. Rethinking their supply chain strategy, zara will face three. Biggest strength of the organization is its goods are delivered.
They are a successful, innovative firm whose competitive advantage really lies with their operations. Master of engineering in logistics and supply chain management. In order to properly analyze the chain of supply for zara, for ascertaining the keys to success, certain aspects must be dissected, for example. The supply chain model of zara includes raw material suppliers, fashion designers, clothing factories and the store managers. Zaras fast fashion edge arteixo is a small town in northwestern spain near the atlantic, surrounded by fishing villages. In zaras case, money that would have been channelized into advertising and marketing was utilized towards creating a lean and agile supply chain. Sc operational practices supply chain strategy think of the supply chain strategy as a bridge. 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.
So how has zara been able to standout from all other fashion competitors. Production is then increased or decreased in theflexible production facilities. The economic rationale to operate a global supply chain in a sustainable manner is developed. Zaras unique supply chain management social media for. It begins by redesigning couture trends for the mainstream market and then leads to manufacturing, distribution and then retailing. Demand based production means there is very littleinventory in zaras supply chain, which results inmuch lower working capital requirements. Arguments are made based on marketing, finance, and production theories that by engaging in socially. Zaras overarching strategy is achieving growth through diversification with vertical integrations. All these are derived from the zara global distribution center which is known as the cube. As a consequence, zara does not have lots of excess inventory, nor does it need to. Zaras supply chain management model secret behind zara. After your payment is received, we will email the case to you within around two working hours.
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