Preview

Imp Doc

Best Essays
Open Document
Open Document
4023 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Imp Doc
Agile Supply Chain: Zara 's case study analysis
Galin Zhelyazkov Design, Manufacture & Engineering Management; Strathclyde University Glasgow email: galin.zhelyazkov@strath.ac.uk

Abstract
Purpose – The purpose of this paper is to assess and document the key aspects in Zara 's success by identifing current gaps, and to provide direction for future research efforts. Design/methodology/approach – Zara 's case studies and literature published from 2001 to 2010 was reviewed. Findings – The review summarizes significant aspects of Zara success, many of which at least partially addressed in previous research. Research limitations/implications – This effort is not an exhaustive review of all research published for Zara. This review does not consider unpublished papers, papers in non-academic journals, or papers presented at conferences. Practical implications – This review is a useful resource for supply chain researchers interested in agile supply chain and retailers willing to learn the key aspects of Zara 's success in agile supply chain. Originality/value – This paper uses the findings of other researchers as a measure of the achievements of Zara against academic theory. The gaps identified and challenges made will serve as a foundation upon which future researchers can build. Keywords Supply chain management, Agile supply chain, Zara case study analysis Paper type Case Study Analysis

Introduction
It is becoming clear that the changed conditions in the global marketplace demand a much more agile response from the organizations and their partners in the supply chain. The period when production was moved overseas, so business can take advantage of cheap labour is coming to an end, because fast fashion starts competing not only on price but also on time. According to Cai-feng (2009) product and technology life cycles are likely to continue to shorten, while demand will be increasingly difficult to forecast. Decision about raw materials must be taken long in advance and



References: 1. Devangshu Dutta (2002). “Learning from Zara: Case Study”, Third eyesight 2. LI Cai-feng, (2009). Agile Supply Chain, Management Science and Engineering ISSN 1913-0341 Vol.3 No.2 3. Tiplady, R. (2006). “Zara: Taking the Lead in Fast Fashion”, BusinessWeek, April 4, 2006. 4. Qinghua Zhang (2008). Analysis on the Successful Case of Efficient Supply Chain in ZARA, IEEE , ISBN: 978-1-4244-2107-7, pp. 1-4 5. Margaret Bruce, Lucy Daly (2006). Buyer behaviour for fast fashion, Journal of Fashion Marketing and Management , Vol. 10 No. 3 , pp. 329-344 6. Damien J. Power, Amrik S. Sohal, Shams-Ur Rahman (2001).Critical success factors in agile Crit 7. Liz Barnes, Gaynor Lea-Greenwood (2006). Fast fashioning the supply chain: shaping the research agenda , Journal of Fashion Marketing and Management , Vol. 10 No. 3, pp. 259-271 8. Donald Sull, Stefano Turconi (2008). Fast fashion lessons , Journal compilation, London Business School 9. Edmund Prater , Markus Biehl, Michael Alan Smith (2001). International supply chain: Tradeoffs between flexibility and uncertainty, International Journal of Operations & Production Management, Vol. 21 No. 5/6, pp. 823-839. 10. Remko I. van Hoek, Alan Harrison and Martin Christopher (2001). Measuring agile capabilities in 11. Umit Bititci (2010). Supply Chain Operations course hand out papers, DMEM, Strathclyde University of Glasgow

You May Also Find These Documents Helpful

  • Good Essays

    INFO0331

    • 778 Words
    • 4 Pages

    There are several ingenious steps taken by Zara that proves both profitable and unprecedented. Zara has used technology to revolutionize their business, from buying the unprocessed cloth to determining which color die to use and what to make with that cloth. The technology process continues on the manufacturing lines and all the way to the final sale. But it does not stop there, it goes beyond the point of sale to question the reasons why a purchase was not made after a client expressed an interest in an item. The point of sale system provides real time data which is given immediate attention. PDAs are actively gathering information which is constantly been taken into consideration. The design strategy is another intuitive step. They do not follow custom catwalk fashion shows, instead they design based on customer demand. Manufacturing and logistics is a key contributor to their highly acclaimed success. The ability to have a product ready and on the shelves in ten days vice the competitor’s time of approximately three to nine month is where the strength of flipping their dollar lies and is accomplished mainly through vertical integration and technology orchestrated coordination of supplies. Deliver to replenish and deliver new stock is an expedited process, in some cases deliver is made overnight. Items placed on the shelves are readily picked up and nothing is ever marked down in a sale. Zara identify and manufacture the clothes customers want, get those products to market quickly, and eliminate costs related to advertising, inventory missteps, and markdowns…

    • 778 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Zappos.com: Developing a supply chain to deliver WOW! (2009) Stanford Graduate School of Business, Case GS-65…

    • 1606 Words
    • 7 Pages
    Best Essays
  • Powerful Essays

    Bibliography: Andrew, M., Vincent, D., & Anders, S. (2004, 12 17). Zara: IT for fast fashion. Craig, A., Jones, C., & Nieto, M. (2004, April 2). ZARA: Fashion Follower, Industry Leader. Business of Fashion Case Study Competition . Ghemawat, P., & Nueno, J. L. (2003, April 1). Zara: Fast fashion. (2008). Inditex Annual Report. Render, B., & Heizer, J. (2005). Operations Management (8th ed.). Pentrice Hall. Shingo, S. (1989). A study of the Toyota Production Syste. Productivity Press , 187. Zara s Business Model. (2010). Retrieved April 17, 2010, from 123helpme: http://www.123HelpMe.com/view.asp?id=97642…

    • 1968 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    European clothing retailer Zara has been highlighted in several publications as a model for its supply chain management. This retail chain exists as a subsidiary of “Spain’s largest apparel manufacturer and retailer” (Chopra & Meindl, 2012, p.14). The most telling account of Zara’s success is detailed in an article for Harvard Business Review entitled, ‘Rapid-Fire Fulfillment’. Here, authors Ferdows, Lewis and Machuca (2004) describe three key principles that Zara relies on to maintain its success……

    • 677 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The changing dynamics of the fashion industry since then, such as the fading of mass production, increase in number of fashion seasons, and modified structural characteristics in the supply chain have forced retailers to desire low cost and flexibility in design, quality, delivery and speed to market (Doyle, Moore, and Morgan 2006).…

    • 547 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The apparel industry faces various supply chain challenges, many due to the fact that the major part of apparel manufacturing activity for the United States market has moved outside the country to low-labor-cost countries in the Far-East. Thus, due to long physical distances, apparel companies in the US are continuously challenged to quickly respond to changing trends, to reduce long lead-times, to execute collaborative product development with suppliers using effective communication and to ensure total supply chain visibility. Moreover, fickle consumer preferences and shortening of the product life cycles make the apparel industry very challenging from a supply chain perspective.…

    • 3901 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    ‘Fashion industry is characterised by short product life cycles, volatile and unpredictable demand, tremendous product variety, long and inflexible supply processes and a complex supply chain.’…

    • 1547 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Zara’s owner; Amancio Ortega, learned early that it is imperative to “control what happens to your product until the customer buys it” (Ferdows, Lewis, & Machuca, 2004, para. 3). Supply Chain Management (SCM) is the reason for success in the fast fashion business. Its dealings are with suppliers and their suppliers, and with customers. It must take into account all the processes from raw materials origin to customer utilization. The productivity of a supply chain is not just the product, but also a combination of place, time, function and form of that product. The way Zara runs its supply chain is so different from others as to appear illogical, however, if we look at Zara’s financials we can see that it works. According to Ferdows, Lewis & Machuca, (2004), “Zara defies most of the current conventional wisdom about how supply chains should be run” (p. 106 para 2). Zara’s creation of an agile supply chain (ASC) is the reason for its success. The whole process of the supply chain in Zara could be divided into four parts: product organization and design; purchase and production; product distribution; sales and feedback.…

    • 991 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    doc

    • 396 Words
    • 1 Page

    I have spent countless hours of researching, visiting and discussing graduate school options with friends, family and colleagues. In the midst of all the research I have done, (insert school name here) resonates with me the most. The college’s rich curriculum and hands on learning in collaboration with a sense of community are all attributes that can elevate my career and personal growth.…

    • 396 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Speed and responsiveness to Market, Zara has changed the way clothing industry works where deigning, production and delivery to the retailers requires period of six months. The design and distribution cycle of the company takes just 10-15days in the whole process. Zara’s speed to market in product development exceeds the capabilities of its competitors. This in itself provides additional value to stakeholders, customers, and stores in producing quality clothing at affordable prices. The proximity of their manufacturing and operational processes allows Zara to maintain the flexibility necessary to design and produce over 12000 new items annually. This capability allows Zara to achieve their strategy of expedited response to consumer demand. The process of obtaining market information and relaying it to design and production teams expedites product development by shortening the throughput time of their products from design to store.…

    • 4530 Words
    • 19 Pages
    Good Essays
  • Better Essays

    The lean and agile paradigms, while particularly different, can be and have been joint within effectively designed and operated total supply chains. In the Wings and Legs case, cost is an important market winner and this is reduced by leanness. In the case of agility the key point is that Wings and Legs operate in an extremely volatile marketplace. Therefore the solution is to develop a hybrid supply chain.…

    • 1099 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    H&M, Benetton and Zara are all garment retailers. Key stages in their supply chains that I will discuss are product design, manufacturing, distribution and retail. Zara and H&M are so called "fast fashion" providers. Their clothes do not have to be of an exceptional quality as the most important factor is to quickly deliver catwalk design to high street customers at an affordable price (Slack et al., 2007). Benetton clothes are of better quality and higher prices but they are at the same time less fashionable and not as trendy. Despite these differences in the target markets, all three companies operate in a very similar environment and all offer innovative products with a life cycle that is very short. Therefore, they need a responsive supply chain that will respond with flexibility to the uncertainties of the environment in which the three companies operate (Fisher, 1997). These uncertainties can be avoided by decreasing lead times, increasing a chain's flexibility or allowing excessive inventories and lower capacity utilisation Fisher, 1997). The later, though, require great capital and leads to high costs. How do the companies balance these factors? In order to answer this question I will follow the…

    • 2712 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Eliminate the Middleman

    • 1768 Words
    • 8 Pages

    Companies have started adapting their business models to the new supply chain model. Globalization has done her own role in all of this and you need to react fast if you want to stay in the game. New and more efficient sources are in demand. Thus, from this demand comes the even larger demand for finished goods or raw materials on the market. Maybe the most important issue is the agility of the companies, how prepared are they to answer to these changes.…

    • 1768 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Two words, lean and agile, combine to make the word leagility. Supply chain managers need lean supply lines to eliminate waste and keep costs low. They also require agile supply chains to get the right amount of the product to the right place in order to satisfy the ever-changing nature of the marketplace. Traditional management recommended a lean supply chain for products with a stable demand, yet low profit margin. Conversely, products with a high profit margin and volatile demand should have an agile supply chain (Van der Vorst). Modern managers may benefit from studying hybrid supply chains that are both lean and agile.…

    • 991 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    References: Agarwal, A., Shankar, R., Tiwari, M.K., 2000, Modeling the metrics of lean, agile and leagile supply chain: An ANP-based approach, European Journal of Operational Research, 173 (1), pp. 211-225 Aronsson, H., Abrahamsson, M., Spens, K., Developing lean and agile health care supply chains, Supply Chain Management: An International Journal, 16/3, 176–183 Bruce, M., Daly, L., Towers, N., 2004. Lean or agile: A solution for supply chain management in the textiles and clothing industry? International Journal of Operations and Production Management 24 (2), 151–170. Mason-Jones, R., Naylor, B., Towill, D.R., 2000, Lean, agile or leagile? Matching your supply chain to the marketplace, International Journal of Production Research 38/17, 4061– 4070. Naylor, J. B.,Naim, M.M., and Berry, D., 1999, Leagility: integrating the lean and agile manufacturing paradigm in the total supply chain, Engineering Costs and Production Economics, 62, 107-118.…

    • 1719 Words
    • 7 Pages
    Powerful Essays