MKTG 310 I
28 Apr 2011
WK 5 Zara Case Study
1. As completely as possible, explain the supply chain for Zara -- from raw materials to consumer purchase. 5 pts.
Zara makes 40% of its own fabrics and produces more than half of its own clothes. Work that has to be contracted out is done by local companies to maximize time efficiency. Zara stocks all raw materials/ fabric, cuts its own fabric and contracts the sewing to local companies. By stocking the raw material, Zara cuts down on time for getting end product to consumers. Having all this material and labor done locally to include stocking end product and shipping via jets, to distant locations and by truck to local locations, has streamlined the logistical …show more content…
Zara utilizes the Corporate VMS. Zara has become the world's fastest-growing fashion retailer. They are faster, more flexible and more efficient. Zara can take a design given to them from stores and have it to the stores for their shelves in two weeks time.
MKTG 310 I
28 Apr 2011
WK 5 Zara Case Study (continued)
4. Does Zara experience disadvantages from its “fast-fashion” distribution system? Are these disadvantages offset by the advantages? 4 pts.
Yes Zara does experience disadvantages from its "fast-fashion" distribution system. One of the risks involved is if the fast fashion doesn't sell well; this is offset by limited production of that item. The customer is at the heart of Zara’s unique business model, which includes design, production, distribution and sales through their extensive retail network.
5. How does Zara add value for the customer through major logistics functions? 3 pts.
Zara adds value for the customer logistically by cutting cost in outsourcing and transportation. They take a design, either seen by a sales associate or given to them by a customer, the store places in a data bank where Zara headquarters takes and makes it into reality. Zara sells the latest trends at low prices, their clients value their design, quality, and constant innovation. Their logistics cuts, using local labor, storing their own raw materials and controlling the activities of