Zara Supply Chain
Abstract
Zara has been operating in Europe since the year 1975. This paper includes a study of the strengths and weaknesses of Zara Company supply chain management system. It divides the supply chain process into three distinct phases. It shows how the company has managed to embrace technology to deliver its products to customers in real time. The paper also contains a comparison between Zara and its main global competitor in the market. The paper concludes by outlining some of the challenges the company is facing as it expands into the Middle East and other regions in the world.
Zara Supply Chain Management
Introduction
Sako (2011) notes that globalisation has led to business organisations spreading all over the world. He continues to outline that global competition and customer demand has also led to the expansion of outlets and branches of these business organisations all over the world. This has made organisations to increase their business muscle and expand their supply chains globally. Therefore, the management of these supply chains is vital to the success of these international organisations. Supply chain management plays a vital role in managing a company’s key processes of developing, producing, distributing, and selling its products in the region within which it is operating from. The success of supply chain management systems is a critical determinant of an organisation’s success. Therefore, every business organisation should carefully manage its supply chain systems (Simchi-Levi, Kaminsky & Simchi-Levi 2009). This paper will look into the supply chain system of a global fashion outlet called Zara. Using Zara as a case study the paper will address issues affecting the supply chain management and most importantly, how the company has managed to stand out in the competition. This is given the fact that the fashion industry is a highly competitive one and firms operating therein need to put in place strategic measures for them to survive.
Zara has been operating in Europe since the year 1975. This paper includes a study of the strengths and weaknesses of Zara Company supply chain management system. It divides the supply chain process into three distinct phases. It shows how the company has managed to embrace technology to deliver its products to customers in real time. The paper also contains a comparison between Zara and its main global competitor in the market. The paper concludes by outlining some of the challenges the company is facing as it expands into the Middle East and other regions in the world.
Zara Supply Chain Management
Introduction
Sako (2011) notes that globalisation has led to business organisations spreading all over the world. He continues to outline that global competition and customer demand has also led to the expansion of outlets and branches of these business organisations all over the world. This has made organisations to increase their business muscle and expand their supply chains globally. Therefore, the management of these supply chains is vital to the success of these international organisations. Supply chain management plays a vital role in managing a company’s key processes of developing, producing, distributing, and selling its products in the region within which it is operating from. The success of supply chain management systems is a critical determinant of an organisation’s success. Therefore, every business organisation should carefully manage its supply chain systems (Simchi-Levi, Kaminsky & Simchi-Levi 2009). This paper will look into the supply chain system of a global fashion outlet called Zara. Using Zara as a case study the paper will address issues affecting the supply chain management and most importantly, how the company has managed to stand out in the competition. This is given the fact that the fashion industry is a highly competitive one and firms operating therein need to put in place strategic measures for them to survive.