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Zara

In: Business and Management

Submitted By Aleeahm3d
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1.0 Introduction: Zara is the flagship chain store of Inditex group which is owned by Spanish tycoon Amancio Ortega. It’s a Spanish based company essentially known for its clothing and accessories which was founded in 1975 (Mo, 2015). Zara believes in following the fast fashion policy, unlike its competitors. The discipline in Zara’s supply chain management has played vital role in its success (Anonymous, 2005). Zara follows vertical integrated strategy where it has total control of number of business activities such as manufacturing, sourcing, and distribution and retail stores, it allows the organization to accomplish greater flexibility, less stock and fashion risk.
The main object of this report is to analyse Zara’s current supply chain and to propose suggestions for their central distribution and alternate solutions for their logistics management costs and their labour cost.

2.0 Zara’s Supply Chain Management 3.1 Supply Chain: Zara is the biggest and most successful chain of Inditex, the design and production is situated in La Coruna in Spain. In order for Zara stores to be able to offer front line style at moderate costs requires the firm to apply a solid impact over the whole supply chain network which incorporates design, purchasing, production, distribution and retailing. Zara utilizes its quick supply chain management to offer the most recent style outlines accessible in stores only fifteen days after they are displayed on the catwalks (Tokatli, 2007). Zara’s Supply chain strategy depends on being as adaptable as could be allowed to fulfil client changing necessities in an ease mass style market. This goal is accomplished through vertical integration. ZARA is included in all aspects of their procedure. A large portion of the fabrics are purchased undyed, to encourage adaptability in each…...

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