Zara Case Study

Improved Essays
1st: Shortage gaming is one of the factors that caused bullwhip effect. Shortage gaming happens when customers order more than they need during a period of short supply, hoping that the partial shipments they recieve will be sufficient
Zara: To prevent the bullwhip effect that can be caused of shortage gaming, Zara do just in time production. Zara keeps a significant amount of its production in-house and makes sure that its own factories reserve 85 percent of their capacity for in-season adjustments. In-house production allows the organization to be flexible in the amount, frequency, and variety of new products to be launched.
Carrefour: Just in time strategy is applied on Carrefour distribution centre in order to prevent bullwhip effect.
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Zara: Zara continuously brought new item every year, including both changes to existing garments (for example, a shirt with new collar or color) and entirely new creations. Zara vertically integrated manufacturing operations enable this constant introduction of new items and also ensured short lead times. Garment and fabric that were used for Zara latest colection constantly supplied by Inditex that were a parent company of Zara. This made Zara has a reliable supplier. The manufacturing process on Zara were done by Zara own group of factories in and around La Coruna.
Carrefour: Carrefour has using sophisticated technology that will able to shared information with their key partners and suppliers. Carrefour also had many supplier sources that can be a characteristic of stable
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Zara: The company often relies heavily on sophisticated fabric sourcing, cutting, and sewing facilities nearer to its design headquarters in Spain. This will make Zara supply chain more efficient since the distance between department was close.
Carrefour: Carrefour get their supply from the nearest suppliers in DC area. It can cut the logistic cost and Carrefour supply chain also getting more efficient.
5th: Relationship with supplier can be categorized in vertical integration and arm-lenght relationship. Both of this categories have pros and cons that will help company to achieve its goals
Zara: The company has vertical integration. This relationship will help zara to control their stores that located in 88 countries.
Carefour: The company has arm’s-length relationship. This relationship with many suppliers can help Carrefour to reach its customers all around the

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