Topics:CostPages: 56 (1913 words)Published: April 4, 2012
1. 2. 3. 4. 5. Short
...Zara: Case questions
1. Coordination of a supplychain is always important. However, such efforts are usually initiated by certain parties. For the global apparel industry, would it be more suitable for downstream or upstream parties to be the driver of the coordination? Motivate your answer with the use of two important characteristics of the apparel industry.
2. Clearly Zara has a strong relationship with all parties within the supplychain.
a) Which of the following retailer-supplier relationships mainly characterizes the relationship between the retail stores and the distribution center?
A. Quick response
B. Continuous replenishment
C. Vendor managed inventory
Only one answer is allowed. Motivate you choice.
b) What is the impact of this type of relationship on the supplychain performance for Zara?
3. a) Is Zara using a push-based, pull-based, or push-pull based supplychain system?
Motivate your answer.
b) Are other companies in the apparel industry using a push-based, pull-based, or push-pull based supplychain system? Motivate your answer.
4. a) Give five distinct advantages of insourcing over offshoring in the apparel industry.
b) Give two distinct advantages of offshoring over insourcing in the apparel industry.
5. a) Which...
Purpose – The purpose of this paper is to understand how to develop a competitive supplychain in order to response to the speed of the customer changes in clothing industry.
Literatures review – The key success factors of the clothing industry are explained. Also the supplychain concepts related to the industry are developed (Agility, Quick Response and Lean)
Analysis of Zara’s supplychain – The supplychain network of the company is analysed and each stage of the network is developed in details to see how the supply concepts are applied or not by the leader of the clothing industry (Zara)
Future developments – The company needs to focus on e-commerce development by taking advantage of its agile supplychain. Furthermore, Zara could set up a reverse logistics to develop a sustainable business.
Conclusion – Three key points are relevant in this industry: the location of production facilities has to be the closest as possible to consumers (1). The use of concurrent engineering ease to develop products quickly (2). Finally, the ownership of the stores is a competitive advantage to understand the needs of customers.
Limits – The use of Zara’s supplychain model is not applicable for international development.
Table of contents
...Zara's SupplyChainCaseStudy – Zara
The competition of current clothing industry is very fierce and Zara has many
competitive advantages in this competition. This paper will analyze on about how
the information technology help Zara to make decisions and make their
performance more speed. First, a case review from Harvard Business Review will
be covered in the introduction to show an overview of current Zara’s business
model. Second is the Michael Porter’s model analysis based on Zara that
including three generic strategies and five forces. Third, some of IT applications
are really help the Zara to make their business more efficient, the applications will
be applied in the Enterprise Resource Planning (ERP), SupplyChain
Management (SCM) will emphasize a speed supplychain for Zara, and Customer
Relationship Management (CRM). Finally is about the relationship between Zara
and Peter Drucker’s theory, Zara and Andrew McAfee’s theory, Zara and Hey’s
theory. The last part will conclude where is Zara today and make brief
Table of Contents
Zara and Michael Porter’s Model 5
Generic Competitive Strategies Analysis for Zara 5
SCM tools and techniques 4
Advanced concepts and Future trends of SCM 6
Linking theoritical concepts and real life SCM 9
ZARA gaining competitive advantage using SCM 10
Managing global supplychain 12
Bibliography / References 12
The aim of this casestudy is to analyze how ZARA has achieved its success through various business strategies. In particular, we will focus on supplychain management the relation between suppliers and retailers which helped to increase the efficiency of the company and also made customers satisfy. In particular, we will analyze various analytical tools and techniques implemented by ZARA to achieve success. And also to evaluate the various key features which are identified in the casestudy. The linkage between planning and control and real life logistics operation involved with procurement, manufacturing support and customer accommodation. How ZARA evolved a global supplychain using procurement and supplier development to improve business performance, drive growth and gain competitive advantage.
About ZARAZara is a Spanish fashion retailer and is the largest Inditex...
...CaseStudy and Exercises
We were given the formula of distance , where
D – Distance from location L (distribution center) to location I (consumption point);
- X coordinate of the warehouse l (distribution);
- X coordinate of the store i (consumption);
- Y coordinate of the warehouse l (distribution);
- Y coordinate of the store i (consumption).
Consequently, applying these formula in the Excel we receive the following result:
Then, multiplying the distance by the amount of demand and summing up for each relevant location, we get:
Thus, the answer is LOCAY, because it has the minimal score.
Using provided formulas , where
- X coordinate of the optimal location for warehouse;
- Y coordinate of the optimal location;
- X coordinate of store i;
- Y coordinate of store i;
- Load (or Demand) of the store i,
The answer is (8;11).
Zara is one of the largest international fashion companies with 1671 stores around the globe. It is a part of Inditex holding. Inditex is one of the world's largest fashion retailers, welcoming shoppers at its eight store formats -Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe - boasting 5.693 stores in 85 markets [www.inditex.com], [www.zara.com].
In 1975 the first Zara shop was...
Zara has been operating in Europe since the year 1975. This paper includes a study of the strengths and weaknesses of Zara Company supplychain management system. It divides the supplychain 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.
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 supplychains globally. Therefore, the management of these supplychains is vital to the success of these international organisations. Supplychain management plays a vital role in managing a company’s key processes of developing, producing, distributing, and...
“Possibly the most innovative and devastating retailer in the world”
- Daniel Piette, Fashion Director of Louis Vuitton -
Center of Graduate Studies & Continuing Education
SupplyChain Management (MNGM 605)
Since globalization is an important asset to the world of fashion, significant developments have improved processes within the industry. It has been challenging for consumers to find clothing “Made in the USA” as transformations in the apparel business have caused changes in the supplychain distribution procedure. Accordingly, globalization has created new opportunities to improve production and distribution practices, which gave room for the growth of the “fast-fashion” concept.
Fast-fashion can be defined as the quick production of “apparel with a low cost, chic look now dominating the retail world. Fast fashion is mass-produced, reasonable in price for most consumers, and easy to obtain, making it simple for anyone to look stylish” (Mhm, 2010, p.55).
Zara: Spanish Retailer
Zara, the Spanish firm owned by Inditex (Industria de Diseño Textil), is the first company to control the fast fashion market in the United States after its success in Europe. In 2009 Zara went beyond Gap and became the world’s largest clothing retailer. In 1975,...