ZARA, H&M & BENETTON Case Report: Supplying Fast Fashion
By Ali Asghar Akhtar, MBA Candidate 2015
Zara, H&M and Benetton are noted high street fast fashion brands operating in a fast changing retail industry. The industry is dynamic in trends, complex and seasonal in style with rapid evolution due to social media, cultural influences and globalization. These three high street fashion labels have managed to differentiate and revolutionized high street fashion retailing providing access to trending style at reasonable price and quality
The below is the comparison of Zara, H&M and Benetton in their supply chain approach which constitutes of designing, supplier and manufacturing, distribution to retail outlets and retail store management and operations .
Designing High Street Labels
The design process is the most important contributing factor…show more content… They have warehouse facilities. There are two parts in a distribution process. For brands which are fast fashion, distribution is a platform to speed up the process from ramp to retail store. The distribution centers are more of sorting centers for respective retail stores to dispatch batches. The second part is the physical distribution (logistics).
H&M: Stock management is handled by the organization and physical logistics is outsourced to subcontractors. The flow of goods is transited through H&M transit terminal from production site to retailer. This process facilitates quality checks and allows swift allocation to the stores or specialized central store stock room.
Zara: The organization has made considerable investment into this activity to leverage on speed by investing in automated warehouse system. The warehouses are strategically located near production centers to facilitate all the steps (store, pack and assemble) of order processing for the retailer. The logistics is mostly outsourced in the case of