Zara Supply Chain System
3- Zara Vertical integrated Supply Chain
To analyze ZARA supply chain, it is interesting to look closely at the product design, inventory management, evaluation of suppliers and vendors, logistics management, material management, time scheduling, information systems which are the main contributors in allowing Zara to offer cutting edge fashion at affordable prices.
It is also interesting to consider other key performance indicators of Zara comparing to other peers in the retail market.
3.1- Design and Production
ZARA has been able to deliver fashionable and trendy cloth addressing all tastes through a controlled design and integrated process. ZARA designs all its products itself. Concurrent method design could be an adjective to the of product design process which involve the whole commercial team , designers, market specialist, procurement team as well as continuous feedback from store managers.
Zara international employs a stable of more than 200 designers to help it keep up with the latest fashion. Most designers are young (26 average), they draw the design sketches then discuss it with market specials and planning & procurement staff. Designs inspiration is copied from different sources (trade fairs, catwalks, magazines) from all around the world. It is worth to mention that out of 40,000 designs only 10,000 are approved. This illustrates the flexibility of ideas generation and on the other hand the huge number of designs reflects the ability to meet almost all the fashion requirements by customers of all ages (up to 55).
Parent company Inditex Group shortens the time from order to arrival by a complex system of just-in-time production and inventory reporting that keeps Zara ahead. Zara distribution centers can have items in European stores within 24 hours of receiving an order and in America and Asian in under 48 hours.
ZARA business is organized around processes not functions, to close the information loop. All team is involved in all processes. This
To analyze ZARA supply chain, it is interesting to look closely at the product design, inventory management, evaluation of suppliers and vendors, logistics management, material management, time scheduling, information systems which are the main contributors in allowing Zara to offer cutting edge fashion at affordable prices.
It is also interesting to consider other key performance indicators of Zara comparing to other peers in the retail market.
3.1- Design and Production
ZARA has been able to deliver fashionable and trendy cloth addressing all tastes through a controlled design and integrated process. ZARA designs all its products itself. Concurrent method design could be an adjective to the of product design process which involve the whole commercial team , designers, market specialist, procurement team as well as continuous feedback from store managers.
Zara international employs a stable of more than 200 designers to help it keep up with the latest fashion. Most designers are young (26 average), they draw the design sketches then discuss it with market specials and planning & procurement staff. Designs inspiration is copied from different sources (trade fairs, catwalks, magazines) from all around the world. It is worth to mention that out of 40,000 designs only 10,000 are approved. This illustrates the flexibility of ideas generation and on the other hand the huge number of designs reflects the ability to meet almost all the fashion requirements by customers of all ages (up to 55).
Parent company Inditex Group shortens the time from order to arrival by a complex system of just-in-time production and inventory reporting that keeps Zara ahead. Zara distribution centers can have items in European stores within 24 hours of receiving an order and in America and Asian in under 48 hours.
ZARA business is organized around processes not functions, to close the information loop. All team is involved in all processes. This