Zara case study supply chain forum

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Zara case study supply chain forum

Zara mainly targets on young and urban female customers and acceptable prices are offered. There are always new products in Zara stores. Even though usually Zara stores are spacious but the stock is displayed in limited quantity. This kind of strategy gives customers a sense of originality and exclusivity.

Most of the stores display clothes only when they have a full set of major sizes, so customers would not be upset to find out that the needed size is not available. Customer relationship between Zara and shoppers is then strengthened by, instead of offering VIP services and discounts, showing a sense of scarcity by displaying unfilled shelves, limited offer notes on certain items and deliberate undersupply impression to encourage customers to run to the counter.

Such a retail concept depends on the regular creation and rapid replenishment of small batches of new goods. Some of the goods are high fashion looks-alike, but much cheaper and lower quality and that in many cases allow Zara to beat high fashion designers in sales and profit amounts.

Zara is not a world leader in cloth designs, but it is a high sensitive and flexible fashion trend follower. In fashion, stock is like food, it goes bad quick.

Chapter 9 "Global Supply-Chain Management" follows this discussion with a survey of a closely related core competency: supply-chain management. Chapter 10 "Globalizing the Management Model" rounds out the business model framework by looking at the globalization of a company’s management model. The holy grails of supply chain management are high speed and low cost—or are they? Though necessary, they aren’t sufficient to give companies a sustainable competitive advantage over rivals. Apr 28,  · Executive Summary. This report aims to study the supply chain management and logistics of fashion retailer, Zara, to boost customer value. The concept of sustainability and competitive advantage is considered with other business models and compared with successful and unsuccessful company.

It has suffered from a significant financial loss in and a dramatic decrements in the share price. In May of the following year, the chairman, who failed to reposition to a more fashionable assortment due to a major fashion missing, had withdrawn from his long-term CEO position.

The supply chain was restructured in s by lowering the levels of inventories and reducing the number of suppliers. Market-driven supply chain linking customer value to supply chain strategy was then applied instead of the traditional supply chain which only designed to optimize the internal operations.

Further actions hence can be taken including contacts of multi-channel customers and campaigns promotional targetingoffers designed to attract and serve different customers according on their potential and existing values.

The current shoppers are frequent and loyal customers who visit 17 times on average to a Zara store per year. Their interest is retained by regularly updating and varying of stocks on shelves. Unlike most of the companies, especially after Global Finance Crisis has started, which try to reduce labor costs, Zara makes a point of running three parallel, but operationally distinct, product families.

Separate sales, production planningdesign staffs are responsible for each clothing men, women, children line.

This sort of physical and organisational proximity of all three channels allows increasing productivitythe speed of new customer desired designs and the whole design process and the quality of that process.

Efficient communication between the company and suppliers is essential in order to reduce production cost and quality maintenance. The global sourced strategy provides a large range of possible selection of fashion fabrics and reduces the dependence on any particular suppliers.

Only one week is required for this process to complete which shows the benefit of proximity and domestic control. The suppliers provide Zara flexibility to postpone the printing and dyeing procedures to adapt product lines according to updated market fashion trend.

Holding inventories costs are reduced as well because orders do not have to be placed for a season in advance and kept in the storerooms before the periodic shipment arrives and Zara is able to react and respond quickly to changes of customer demands which also reduces the risk when final demand gets amplified as they are fulfilled quickly by transferring new designs to the supply line.

Secondly, Zara never makes its production in big quantities, so if the style does not sell as good as expected, Zara does not lose much as there is not much stock to be discounted.

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The positive effects associated with the vertically integrated, shortened supply chain are obvious: The short cycle time requires less working intensive of new merchandise and allows Zara committing to the bulk of production line for a season later than the peers.

The high frequent of shifts of displayed merchandise about three quarters of them are changed every 3 weeks allows regular customer-visit rates to be maintained.Zara's case study will be used, as an example, considered to be the pioneer in fast fashion industry nowadays.

The section following this . Case study Zara 1. ZARA is a Spanish clothing and accessories retailer based in Arteixo, Galicia. Founded in 24 May, by Amancio Ortega and Rosalía Mera.

Zara needs just two weeks to develop a new product and get it to stores, compared to the six-month industry average, and launches around 10, new designs each year.

Zara was . Search the world's information, including webpages, images, videos and more. Google has many special features to help you find exactly what you're looking for. Search the world's most comprehensive index of full-text books. My library. CASE STUDY. Zara The case describes how Zara, operating out of the Galician port of La Coruña in north-west Spain has managed to become a benchmark for speed and flexibility in the garment industry.

The case offers an illustration of a fast-response global supply, production and retail network.

Zara case study supply chain forum

Supply Chain Forum An International Journal 5/5(4). I have been struggling with what light fixture to put in our upstairs bathroom for a while now. I’m actually struggling with the whole space.

ZARA CASE STUDY by Catarina F. on Prezi