Zara Supply Chain Case Study Essay

3834 Words Jun 19th, 2013 16 Pages
Zara’s supply chain case study

Declaration: 1
Introduction 3
SCM tools and techniques 4
Advanced concepts and Future trends of SCM 6
Linking theoritical concepts and real life SCM 9
ZARA gaining competitive advantage using SCM 10
Managing global supply chain 12
Bibliography / References 12


The aim of this case study is to analyze how ZARA has achieved its success through various business strategies. In particular, we will focus on supply chain management the relation between suppliers and retailers which helped to increase the efficiency of the company and also made customers satisfy. In particular, we will analyze various analytical tools and techniques implemented by ZARA to achieve success. And
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Cycle time reduction: It reduced the cycle time by eliminating the non-value added activities.

Employee’s empowerment: As in Zara it takes the orders from its stores 2 times a week. And, this helped the sales managers to interact with the workers every week and get to know which apparels are selling well and which are not. At the time of placing an order the manager will be having knowledge of what items should be ordered. In this way the Zara is able to customize its offers based on the different markets.

Waste reduction: Eliminating the wastes which helped it to sell the good quality products to the customers at low price and in the quick time.

Continual process refinement: By implementing lean techniques and methodologies it helped Zara to continuously improve the processes in order to reduce the wastes which in turn helped Zara to flourish till the current day.

MRP (Material Requirements Planning): In Zara, the designing of the products is done in a separate hall where they have designers, market experts and buyers(experienced staff). Designers designs the product and shows their design catalogue to the market experts and buyers. Once, the buyers are satisfied with the designs they start order fulfillment process which includes planning, procurement and production requirements monitor warehouse inventories

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