Case Study Of Supply Chain System Of Zara

850 Words 4 Pages
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.
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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,

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