Supply Chain Case Study: Zara

Decent Essays
Abstract
Zara adapts designs, manufactures, distributes, and retails on a global scale. Zara designs as well as manufactures a majority of the apparel that customers buy in its stores. Not only is Zara a leader in retail fashion its also a leader in supply Chain Operations.

Introduction Zara is revolutionize the way companies run their supply chain operations. From 1991 to 2003 Zara saw their sales rise 70% and rose from a 3 million dollar company to 4 billion company. Zara achieved this by limiting the turnaround time from design to store, limiting inventory and minimizing disruptions in the supply chain.
Turnaround Time Zara is able to have a turnaround time of 15 days from design to store. Zara is able to produce
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Inventory is a big concern for any manufacturing country as according to Johnson, Inventory annual adds 25 -32 percent of additional cost. (2017). Zara is able to limited the amount if inventory by not running the facially at full capacity and by only having one shift. Zara also limits their inventory buy not pushing the factories to maximum outputs. This allows them to focus on top selling items and adjust the product for as needed based on materials.
Disruptions
With manufacturing over 800 million garments, and a turnaround time of design to shelves of just 15 days there is plenty of room for disruption. Zara is able to limit them by having the designers stationed near the production line. By having the designers right in the middle of the production plant they can see firsthand how the production is looking and how the final design looks as soon as it becomes availed, so if adjustments need to be made than they can make them right away. Zara is able to avoid accesses of inventory by not running the facially at full

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