Case Study Of Supply Chain System Of Zara

Decent Essays
Question 1

What is a supply chain system?
A supply chain system is the flow of material which may be considered as raw, which in turn is transformed, and then sold to customers. This flow of material is normally split into three parts, which are the Upstream, Internal and Downstream.
The Upstream is where the procurement of the material or multiple different materials is done. In a case where to produce a particular product, several raw materials are needed, then the different companies which extract or produce the raw material will deliver the material to the organisation.
The Internal is where, when the raw material or materials are at the product producer organisation, will gather all the materials and transforms them into the product.
…show more content…
Zara manages this in a very efficient way and can manufacture different products by using few types of materials. Zara buys large quantities of only a few types of fabric (just four or five types, but they can change from year to year), and does the garment design and related cutting and dyeing in-house. This way fabric manufacturers can make quick deliveries of bulk quantities of fabric directly to the Zara DC – the Cube. The company purchases raw fabric from suppliers in Italy, Spain, Portugal and Greece. And those suppliers deliver within 5 days of orders being placed. Inbound logistics from suppliers are mostly by …show more content…
VSM originated from Toyota, which managed to increase the performance of the production floor by analysing several data of critical locations in the production process. In this age of time, one could replace an old machine with a more efficient one to decrease cycle time, but when the manufacturing was done by hand, various techniques where done to increase efficiency by optimising management and find employees which believe in the company and would give their utmost to give the best performance. (Emiliani,

Related Documents

  • Improved Essays

    Grant Enterprises is considering an opportunity cost, “where one will choose one alternative over another and are relevant costs for decision-making purposes” (Sawyer, Jackson & Jenkins, 2013, p. 10). What elements will management need to consider to make a relevant decision about a new product? Marketing could survey the marketplace to get a fill for how a new product could be received. This data would be useful in determining a possible price; manufacturer suggested retail price range, discounts for volume purchases and acceptance and likely demand. Marketing will need to understand the products general deign and function to provide a marketing campaign portfolio, ultimately providing the material needed by the sales department.…

    • 372 Words
    • 2 Pages
    Improved Essays
  • Decent Essays

    P2 Unit 4 Business

    • 167 Words
    • 1 Pages

    Manufacturing will be creating some of my products but most will be brought in by suppliers. I need the materials to make these products which would be also brought in by suppliers thanks to purchasing and finance. Manufacturing will provide goods using the materials supplied by purchasing. These products will then be sold by sales. They also want to show how efficient an organisation can be, this may be in the form of showing how quick they can produce good quality products.…

    • 167 Words
    • 1 Pages
    Decent Essays
  • Great Essays

    Devices will be cradled on their respective charges when not in use. 3. Devices will be under precision measurement, calibration and testing every 6 months. Riordan’s current manufacturing process As you can see from the above illustration, Riordan Manufacturing current process for the receiving of raw materials is a manual system, which could cause inaccurate information due to human error. With the slow process of each station information could take days before entering the system for others to see.…

    • 2818 Words
    • 12 Pages
    Great Essays
  • Improved Essays

    INTRODUCTION: There has been a significant rise of Internet based information, developments in communication and technology. A dedicated SCM can be framed with these advancements in order to face the strategic and operational objectives of a company. It is estimated that one in six firms had reshored its manufacturing to UK from other countries. The concept of Supply chain is to integrate the end to end operations of a business, managing the sources, flow of materials considering a total systems perspective among multiple functions and suppliers.…

    • 731 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Zara Fashion System Analysis

    • 2487 Words
    • 10 Pages

    Lean system could help Zara look for different locations that conduct shipping time and money consumption. That’s the reason why Zara does not like other retailers that alleviate the cost of production by outsourcing to Asia, but actually produce its majority designs in European and North African factories. Some waste areas like “transportation, delay, over processing, overproduction, and knowledge disconnect can be avoided after applying lean system for the manufacturing” (Tait). After reducing cost of production by lean system, Zara could get the advantage of the time consumption, and bring up new production to consumers before other…

    • 2487 Words
    • 10 Pages
    Great Essays
  • Improved Essays

    SUSTAINABLE SUPPLY CHAIN MANAGEMENT PRINCIPLES From working personally with the Woolworths company I was able to see how and why inventory was transferred from suppliers to stores. The Woolworths company uses a very simple inventory management system. As a supermarket, having the adequate number of stock in stores at all times is pivotal in keeping customers satisfied after every shop at a Woolworths store. In order to achieve this goal, Woolworths supermarkets use an electronic inventory management system that sends alerts to the specific warehouse when stock is low or is expected to run out.…

    • 1424 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Novartis Case Study

    • 1135 Words
    • 5 Pages

    Novartis is a global healthcare company that is a world leader in offering medicine and vaccines to a global marketplace. Novartis was founded in 1996 out of a merger between Ciba Geigy and Sandoz. Following a corporate transformation Novartis now focuses on three divisions with global scale and innovation power – pharmaceuticals, eye care and generic medicines. Global headquarters are located in Basel, Switzerland. Novartis Ringaskiddy Ltd (NRL) is operational since 1994.…

    • 1135 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    HBR CASE STUDY Excel-Pls supply chain management at Haus Mart 1. How is value added in supply chain management through better planning versus better execution? Ans. Supply chain management as we have learnt in this course is managing the movement of goods and services. It involves the storage and flow raw materials, inventory of work in process as well as finished goods from their point of origin to their point of consumption or use.…

    • 1315 Words
    • 6 Pages
    Improved Essays
  • Great Essays

    1. How will you recruit your employees, and what will you be looking for? a. I will recruit my employees through online postings of my available positions such as Craigslist and Indeed.com. I will also add the available positions (as the positions are needed) to my company website: www.itsevidentmedia.com b. This is the ad for our newest hire, a Social Marketing Assistant, which list the roles and requirements Evident Media Inc. is looking for: 1. What kind of training will they go through?…

    • 602 Words
    • 3 Pages
    Great Essays
  • Great Essays

    1.0 Executive Summary Supply Chain refers to the flow of products or services start from the point of origin from the supplier to end consumer (Investopedia, 2003). Supply chain management refers to the design and management of seamless, value added processes across organizational boundaries to meet the needs of end consumer. Supply chain management is very important for a company to success especially for those multinational companies as nowadays the supply chain emphasizes on building trust-based relationship with the supplier and the company can focus on their core competencies for a long term benefits with a common goals. A supply chain management started with key suppliers and has four important elements.…

    • 5288 Words
    • 22 Pages
    Great Essays
  • Superior Essays

    Question 1. Aggregate inventory data suggest that while overall average inventory levels are declining, the relative percentage being held by manufacturers is increasing. Explain why you think this observation is either true or false. Describe how such a shift could benefit the operations of the entire channel and how manufacturers could take advantage of the shift.…

    • 1166 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Dubai Logistics city project is the world 's first integrated logistics and multi-modal transport platform - with the new Dubai Logistics City (DLC), Jebel Ali Port and Free Zone and the new Jebel Ali International Airport (JXB) at its core. It is set up as another free zone in the desert, for reasons of vast expansion possibilities and close proximity of Jebel Ali International Airport which benefits companies for the perfect tri-modality within a single customs bond. Furthermore it is very easy to change freight from air, sea, or land transportation to neighboring countries as well as further locations. The reasons that have led to this project was although the existing facilities in the Dubai cargo village are considered to be the best…

    • 740 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    4.0 The organization business strategy 4.1 Business level strategy of Zara Michael Porter also formulated a theory of how company can select a business level strategy. The organization must choose between two basic ways of increasing the value of an organization’s product which is differentiating the product to add value or lowering the costs of value creation. Based on Zara’s company the business level strategy is based on focusing both and differentiation cost leadership. Most important point of this strategy is to maintain balance between low cost and differentiated products.…

    • 858 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Low-quality raw materials can not do high-quality products. ( Lynn,2011) First of all, the supply chain refers to the goods to reach the hands of consumers before the connection or business convergence. Supply chain around the core business, through the information flow, logistics, capital flow control, starting from the procurement of raw materials, made of intermediate products and the final product. Finally, the product sent to the consumer by the sales network will be suppliers, manufacturers, distributors, retailers, until the end user into a whole function of the network structure.…

    • 1096 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Airasia Case Study

    • 1214 Words
    • 5 Pages

    I. INTRODUCTION a. Objectives and Scope AirAsia is a malaysian low-cost airline. It scheduled domestic and international flights and is Asia’s largest low fare airline. Nowadays, MIS is a significant factor that influence the airlines system. In this article, the writer will focused on the online booking department that generized with the MIS system.…

    • 1214 Words
    • 5 Pages
    Great Essays