Case Study Of Zara
This report is to analyze what are the main reason for Zara to be success and identify logistics management strategies that supports the Zara’s succeeds. The main purpose of this report is to analyze and compare it with other successful and unsuccessful company’s supply chain management and how it is affecting the business directly and how important supply chain is.
And also what kind of strategies Zara is using to fulfilled customers need on their needed time to satisfy customer.
The report is also compared of Dell and Myers in their supply chain management to show if there are any similarities formula for success and if other company should use same strategies or not. The idea of sustainability and competitive advantage …show more content…
2 weeks after a design is showed on catwalk, Zara finishes make the items, distributes and ready to sell. By owning its own supply chain this fast process is possible and Zara competes with its speed.
Zara uses in-house production and stores 85 percent of its capacity for its adjustment for the season. In-house production helps the business to control the number of production and diversity of new items to start to sell.
Zara also produces 15 to 25 percent of seasonal design and do it in half year advance, and just start with 60 percent of seasonal line and the rest of the line will be manufacture during the season. If a style get popular and Zara starts to work to manufacture the design. To get the right information of customers preferred design, store managers communicate with customer and the result will be send back to designers to design the new item considering requests from the shoppers.
Having enough capacity is also very important fact to company’s succeed, and Zara do manage it very well by operating 4.5 days per week for full capacity in clock-work and also have back up plan for extra shifts and casual labour to be joined in the situation of …show more content…
Inventory management & logistics of Zara
It is hard to find dead stock in warehouse of Zara, and this covers from raw material to finished goods in the store. Zara manage to control the inventories by shipping twice per week directly to every single store to fulfilled individual store’s need. Through this strategy Zara can avoid to add up all the unsold items and this also became Zara’s positive brand image as well.
Keeping the stock near to the headquarters in Spain, is the answer for the fast distribution and it helps Zara to deliver more often. If new item doesn’t have great result, still the loss isn’t too much, because the batch is small. And Zara do still have enough time to manufacture new style.
Centralized logistic is the main key for Zara’s success and making fast decisions on time is also supported its business success. Outlets of Zara is sending out two orders every week based on the accurate schedule and also all the delivery transportation keep the time to send the items on time, and all the finished goods are labeled and ready to