Essay about Zara and Benetton Supply Chain Comparison

2369 Words Feb 11th, 2011 10 Pages
Comparison of Zara and Benetton Supply Chains

REPORT

Master
Supply Chain and Purchasing Management (MSCP)

Date 11.02.2010

Outline

I. Supply Chain strategy 3
II. Supply Chain structure 5
III. Supply Chain processes 6
IV. Supply Chain management practices 7
V. Supply Chain performance 8
VI. Strengths and weaknesses 9
Bibliography 10
Appendix 11

I. Supply Chain strategy

The purpose of this report is to compare the supply chains of Zara and Benetton, two global players of the apparel industry. To give a first overview, both companies are placed in the quadrant of supply chain strategy:

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This scheme indicates that first of all, both companies are allocated close to each other and therefore face similar
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Supply Chain processes

Design

Zara seldom rely on itself to design the clothes but it tries to get the spirit from fashion releases. Normally, it’s March for the autumn and winter fashion release and September for the spring and summer fashion release. Zara’s designers try to get information as much as possible to the headquarters. The designers at headquarter do some redesign according to the latest fashion and make Zara’s own style. The professional team is constituted by designers, marketing and purchasing specialists. They will discuss the possible latest fashion style, cost and price. After the discussion, the designers make the samples. The team will further discuss whether they should make the garment in house or not.[8]

Benetton tend to provide the same or similar produces in the same country. 20% of the styles in its ranges are customized for satisfying the specific demand in each country. It tries to make a balance between basic collection and fashion collection for its products.

Supply Chain

Zara designs all its products in house, only out-sources a small portion. Zara only produces a small batch, and then delivered them to the retailing store by air plane. Thanks to Zara’s information system, Zara could use the low level stock strategy comparing with its competitors. It makes possible to produces only small quantities of each items and moves on to other items rapidly. Since Zara has a low stock in

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