Analyzing the impact of supply chain management practices. Executive summary this report aims to study the supply chain management and logistics of fashion retailer, zara, to boost customer value. It s client was driven administrations, logistics, driving the pace, customized innovation, vertical integration and economies of scale got a handle on from its guardian organization, inditex, are the way to its prosperity. Supply chain practices of zara august 31, 2009 institute of management technology, nagpur pgdm 20082010 supply. It also includes coordination and collaboration with channel partners which can be suppliers, intermediaries. And, in keeping with zaras distinctive edge, each of these steps makes a decisive departure from the industry norm. The key to zara s ability to establish an agile supply chain rests on the following unique approaches. 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 use such system to differ substantially from its competitors. Sc operational practices supply chain strategy think of the supply chain strategy as a bridge. Sc operational practices supply chain strategy think of the supply chain strategy as a bridge between business strategy and sc operations.
Zarasupply chain management free download as word doc. Integrating supply with demand is a fundamental challenge for managers today. Nadeshwar mukherjee 08ft040 nandi ananya sujit 08hr031 sorubh janmeja 08hr094. Zara supply chain management case solution and analysis, hbr. The study found that the great majority of respondents who answered the question 70 percent agreed that supply chain vs. Zara supply chain management case study select 100% authentic. Zara is one of the best examples of supply chain success. Pdf zaras supply chain management practices pawan paliwal. Zaras supply chain management practices zara has managed to fill a hole. It shows that operation management is one of major activities for zara to support its fast fashion system. Later, the format was changed to forty weekly magazines and six special issues.
Therefore, the strategy of fast fashion make zara successful and their operation management and supply chain are their competitive advantages. What information infrastructure does zara need in order to. Iipmr international institute for procurement and market. 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. Management inventory management under conditions of certainty and uncertainty submitted by. 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 supply chain management practicesoperationscase. What information infrastructure does zara need in order to operate its production, distribution, and fast fashion retail network effectively. Zara is the most compassionate supply chain that ships the latest products to the stores globally twice a week. The file will be a locked pdf file, with a do not copy watermark. Zaras expanding global reach could finally put its iberian peninsulabased ecosystem to the test. For retailers, the main objective is to ensure delivery of the product to enduser at reasonable prices and providing consumer satisfaction, this is done by value chain.
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. Originalityvalue this paper uses the findings of other researchers as a measure of the achievements of zara against academic theory. Zaras organizational culture and structure mswpg7212. As described in a case study of zaras supply chain, the company is vertically integrated, controlling most of the processes in its supply chain. Our supply chain respects workers and the environment. Founded in 1975, zaras parent, inditex, has become a leading global apparel retailer. This makes it possible for store managers to order and receive the products. New technologies helped zara adopt best production practices, warehouse procedures and stock count systems. Download using civilian supply chain management best practices to. With ever changing trends it is even harder to predict the market and hence forecast the required raw materials and supplies.
The key to zaras ability to establish an agile supply chain rests on the following unique approaches. Zarasupply chain management supply chain inventory scribd. Inditexzaras superresponsive supply chain reduces bullwhip effect. Zara supply chain analysis the secret behind zaras retail success. Rethinking their supply chain strategy, zara will face three challenges. Zaras supply chain and operations management term paper. Zaras procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes. After your payment is received, we will email the case to you within around two working hours. The various learning from zaras supply chain management has also. The company employs a philosophy of lean inventory across its supply chain ensuring that all resources are maintained at lean levels from the finished garments to the raw materials hansen, 2016. 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. Quick refers to the time it takes to release a product in the market, and quality refers to the product as a whole its components, or if it is in line with current fashion trend. Supply chain practices at zara retail fashion scribd. 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.
And sometimes supply chain model files json files become damaged. Mar 18, 2016 marketing a successfully worldwide famous brand. Zaras unique supply chain management social media for. Introduction to supply chain management supply chain management is now considered to be a key to competitiveness for global companies. 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 consulting. The fashion industry is known to run on a high degree of uncertainty. The retail managers are the eyes and ears of the company which provide word of mouth information on customer wants and preferences. There are 149 modules in total that need to be completed for this certification course. Purpose to analyze zara s success due to its supply chain how it correlates with valuecreation for the company. Assumptions and simplifications used in this model.
Viardot 2015 discussion of zaras supply chain management. Introduction to supply chain management examples of different supply chains goal of supply chain procurement supplier selection, procurement policies, etc. It begins by redesigning couture trends for the mainstream market and then leads to manufacturing, distribution and then retailing. The first my market shop format was designed by tobia scarpa, son of the famous. Supply chain practices of zara august 31, 2009 1 institute of management technology, nagpur pgdm 20082010 supply chain management project report supply chain practices of zara course facilitator. Zara prides itself on giving consumers the latest fashion trends every days. Zara operates a marketorientated business strategy that is based on satisfying customer needs. 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. Founded in 1975, zara s parent, inditex, has become a leading global apparel retailer. Rethinking their supply chain strategy, zara will face three. The concept of sustainability and competitive advantage is considered with other business models and compared with successful and unsuccessful company. We work with a system that allows us to control and trace our garments in order to guarantee that our suppliers are.
This constant feedback allows for information to be easily relayed back so that workers can design, produce and. The promotion of such rapid consumption is inherently harmful to both people and the. In spain, zara has its major distribution center from where they process all the items of clothing. Document presentation format jun 21, 1975 by amancio download. In order to properly analyze the chain of supply for zara, for ascertaining the keys to success, certain aspects must be dissected, for example. Zara supply chain and valuecreation makrand agrawal b43 palash vermae35 sai praveend23 2. Read this essay on zara s supply chain and operations management. The case study analyses the strategic, operational and supply chain processes that have contributed to the success of zaras retail operation. And sometimes supply chain model files json files become damaged and they no longer work, so you want backup copies of your supply chain to restore from when that happens. There are 5 crucial phases in zaras supply chain procurement, supply, production, manufacturing, distribution. Perhaps the greatest complement being paid to uniqlo and zara is that some of their rivals are starting to follow their example. All books are in clear copy here, and all files are secure so dont worry about it. Scribd is the worlds largest social reading and publishing site.
Conclusion zara s supply chain is a very good example of the strategic alignment because people, processes and practices support timebased strategy perfectly. Zara has attained the main objective of ensuring timely delivery of products to enduser at affordable prices and complete customer satisfaction. Supply chain management is the strategic management and coordination of all traditional business functions within the supply chain, with the goal of increasing longterm performance and striving for customer satisfaction at the end point of delivery. 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. This helps reduce waste, as you can reuse fabric but not resell a piece of clothing that didnt meet the expectations. Zaras organizational culture and structure mswpg7212 studocu. Zara is the flagship company of inditex, the global spanish fashion retailer inditex, 2009. Come browse our large digital warehouse of free sample essays. Group 2 abhay kanwar upasna handa gaurav lochab aank dhanda. Nov 28, 2016 4 bestinclass supply chains to watch and learn from. Mitx micromasters in supply chain management program overview duration. 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.
However zaras success story lies in its unique break through supply chain strategy by which it has differentiated itself from its competitors. Supply chain performance in the apparel industry zara. Mastering supply chain management can enable companies to increase market share, reduce. Since the company chooses to hand the process of design, production, and distribution all inhouse its retail stores are then able to react much faster to the changing trends in. The implications of these effects for supply chain management are numerous and important. Perezfranco sc2020 project sc operational practices. Oct 27, 2015 in 40 years since it began retailing clothes, it has emerged as one of the worlds fastest growing manufacturers of affordable fashion clothing. Rethinking their supply chain strategy, zara will face. Operations management of inditex and its retail zara. Supply chain practices at zara free download as pdf file. Zara s procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes.
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. Consequently understanding and practicing supply chain management scm has become a mandate to compete and improve supply chain surplus in the global arena 1. 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. What are the course contents for certified supply chain specialist cscs.
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 management free download as powerpoint presentation. How agile and zara are transforming the us fashion industry. Zara excels in marketing and supply chain management. Read online using civilian supply chain management best practices to. Master of engineering in logistics and supply chain management. International institute for procurement and market research iipmr is a global leader in training and certification for market research and supply chain management education. Zara azel francebih article pdf available in european researcher 4743. Jan 04, 2020 in this exercise your mental model of zaras supply chain will expand and your understanding of how this supply chain works will deepen.
Want to manage your supply chain as efficiently as zara. Strengths and weaknesses 9 bibliography 10 appendix 11 i. Purpose to analyze zaras success due to its supply chain how it correlates with valuecreation for the company. Presented bymanju pokharelsupply chain management of zara slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. You will see the continuous adjustments that need to be made to keep the supply working and to keep operating expenses and inventory levels under control. Zara s supply chain management investigation gives more profound comprehension of the inward value chain. Zara supply chain management case solution and analysis. How zara operates the most agile supply chain in the world. Nov 14, 20 for zara, its supply chain is its competitive advantage. 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.
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. Zaras successful supply chain management strategy social. Traditional fashion retailers are not able to manage or achieve this, as they operate on a seasonal basis and require severalmonthlong lead times for the production and distribution of collections. Supply chain strategy the purpose of this report is to compare the supply chains of zara and benetton, two global players of. This research on the european apparel industry emphasizes the economic and supply chain aspects of zaras operation. Digitalization of zara and fast fashion technology and. Zaras unique business model is driven by its supply chain capabilities.
Study the design, production and distribution processes of zara. Explain the supply chain principles and best practices you used to solve the. Because zara is a private company, specific details of the zara business model and supply chain can be difficult to verify. The study is compared with the supply chain management and business strategies of zara. Zaras fast fashion strategy in 2004, a famous pop star toured spain to. Zaras supply chain management practices operations case. The early attempts of empirical research in scm have been limited at developing instruments capable of measuring scm practices. Then, they have to stick to all rules so the whole supply chain is running like the welloiled machine. Since its initial public offering ipo in 2001, inditex quadrupled its profits and. Zaras supply chain is responsive and flexible, with new items continually produced and placed on sale, often in limited batches. The successful implementation of an integrated supply chain strategy enhances. 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. Cooper 2000 issues in supply chain management, industrial marketing. Inventory management and centralized logistics are also an important part of zara s unique supply chain system.
It is rare to come across excess stock in any of the companys warehouse or store. Among key aspects in the success of zara s supply chain management is its effective management of inventory. There should be an optimal combination of demand management and supply chain management to cope with market trends and to earn an advantage over competitors d. From a supply sense perspective, zaras fast fashion operation obliges. It is that high touch relationship they maintain that leaves little to. Direct communication with consumers no advertising management synergy between business and operations strategy good supply chain management manufacturing justintime jit production reduces the amount of inventory available, lowering zaras storage cost. However, its business model is based on an unsustainably high turnover rate. Once the products are designed in the companies, they take at least a couple of weeks to reach the outlets. 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. Zaras strategic capabilities and value chain analysis. Zara has operated well using phones and fax machines with their store managers for a number of years. Get the knowledge you need in order to pass your classes and more. Zara is a clothing line a chain of stores from spain that belongs to the inditex group, a spanish multinational textile producer, and distributor. For students of supply chain zara is an icon, relying on a contrarian strategy of vertical integration in retail apparel to introduce dramatically more new items each year.
If you continue browsing the site, you agree to the use of cookies on this website. Spanish fast fashion retailer inditexzara broke the 2season paradigm i. The speed at which raw materials are turned into clothing allows the company to ship more often and in small batches, limiting. On the average, 50% of its products are manufactured in spain, 26% in the rest of europe and 24% in asian countries.
Supply chain management encompasses the planning and management of all the activities involved in designing, sourcing and manufacturing, distribution, retailing and logistics. Oct 02, 2016 zara is a spanish fashion chain stores, which is one of the largest international fashion brands of inditex. This helps reduce waste, as you can reuse fabric but not resell a piece of clothing that didnt. So how has zara been able to standout from all other fashion competitors. Zarasupply chain management supply chain inventory. Zaras supply chain management model secret behind zara. Pdf supply chain management of zara mona singh academia. 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. Its well constructed supply chain management strategy. The secret behind zara and uniqlos supply chain models. Zaras overarching strategy is achieving growth through diversification with vertical. Zara supply chain management mona singh 14868329 aut university. Zara has set some good policies for supply chain management, such as the closing the loop program.
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