Supply Chain Analysis: Zara's Brand, And Fashion Chain

Zara

Introduction

Zara is a fashion label and fashion chain stores established in 1975 by the Spanish group Inditex own by Amancio Ortega. Next to Zara, the rest of the labels the groups own are Bershka, Massimo Dutti, Pull and Bear, Stradivarius, Oysho, Zara Home, Zara kinds and Uterque. During the last two decades Zara tripled its profit and stores and nowadays is ranked the third biggest retailer world-wide (Zhang, 2008).

Task 1

Supply chain

Its supply chain goes through stages of Design, Cuts, Fabric, Sewing, Ironing, Wrapping, Selling and Transportation. It is positioned on third position in world retailers and it has introduced agile supply chain (ASC). Zara makes close communication between designers and customers and it has ability

This, however, is offset by the cost savings of not having items shipped all over the world. It is also offset by fast response without wasting time. Its fast fashion is its competitive advantage, so this is much more valuable compared to saving that Zara could save by outsourcing globally. It is considered to be fast fashion’s pioneer and it supplies new fashion items twice a week to stores. When fast fashion of Zara is compared withEast clothing industry then east clothing industry takes 6 to 9 months and international brand takes 4 months but Zara takes only a week (Bruce and Daly, 2006). So Zara fashion reacts quickly for change in demand and if an item is not salable then it will keep in small stores. Its customers visit Zara often as they know it brings new design every week. In this way its stores are always fresh and there is less risk of any wrong forecasting. Its distribution system helped it to mind blowing response. Its founder is already having textile industry’s experience before opening the first store so he has better on its supply chain, from design and production to distribution and retailing. Its investment in high- tech information system is its disadvantagebut it is offset by advantage as its high tech technology took its vertical integration to unprecedented level. This technology also links it to its distribution system

Each manager of store sends data to its headquarters and its new design i.e. Shazaam reaches to market in just approx. two weeks. It is its team work who works outstanding and which is shown in bottom line profit of Zara. Its approach to design is closely related to its customers. Its 200 employees of creative team are inspired with nonstopinformation flow from desires and demands of stores conveyshoppers. It continuously ask need, wants and demand of customers as it is customer oriented which helps it to get ideas, taste and trends of all over the world. It is its success’ reason that it takes care of cultures, varieties and different needs of people all over the world. This is the reason that in spite of not owing vertical marketing system’s all stages it still has control on that it doesn’t own. . Zara is known for customer centralization. It makes design as per choice of customers and if its design are not sold, it quickly take it out from stores Its VMS is best when compared to its administered or contractual systems. Its VMS helps it to achieve many benefits which includes to control over supply chain; to make fast design and send it to stores quickly; to manufactures more items; quick shipments and lower inventories. So it can be said that it is flexible, faster, and efficient than any other fashion house due to its