sunandaC

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Zara’s supply chain management practice

Zara was founded by Amancio Ortega Gaona (Ortega), who was born in Leon, Spain, in 1936. Ortega worked as an assistant in an apparel shop and he set up his own fashion retail business named Confecciones Goa. Ortega wad created with democratizing fashion in spain, he was responsible for making designer clothing accessible to the masses.

According to a survey conducted by Interbrand, Zara was the only Spanish brand to be featured in the list of ‘the 100 top global brand’ in 2005. It introduced about 12000 designs every years, the shelf life of each design was about four week and it was customized in accordance with the data send by them every day. the key to Zara’s success was its vertically integrated structure where design, production, distribution, and retailing were integrated.
Zara went on to become the flagship brand of the holding company, Industrial de Diseno Textil, SA, popularly called Inditex, which was founded in 1979.according to Inditex,, “Zara is a high-fashion concept offering apparel, footwear, and accessories.

One of the secrets behind Zara’s success was its ability to spot emerging trends and react quickly. The store managers were selected carefully as they had an important role to play in providing the crucial information which formed the base for new design. The designs tram who traveled across the world looking for new designs and the emerging trends. Zara had three designs center one each for men’s, women’s, and children’s apparel. The store managers across Zara’s store placed orders twice a week, on Wednesdays and Saturdays in southern Europe and Spain and on Tuesdays and Fridays in other part of the world. They collect information from different stores and then fed into a data base and each store specialists was responsible for the group of stores. They take feedback from store manager and based on the feedback, the store specialists provided the designers with an outline of the new design.

Depending on the style and size to be produced, the fabric was cut at Zara’s own high-tech automated cutting facilities. Zara has its own flexibility production process so that when demand for any desings was low; Zara was able to stop its production. The company considered several factors like expertise, cost, and especially time sensitivity before opting for outsourcing.
The distribution center had two levels and was fully automated. On one level was the section on folded appeal packed into cardboard boxes. On the other level were garments placed on the hangers. And also there were two belt system one for folded and one for hung garments.

Zara was very particular about the location of its store. The stores were mostly located in prime location across the worlds. Zara planned its store windows and displays carefully. The display of cloth was given prominence in the stores. The cloths were organized by color rather than the types of garments. Zara’s entire store was located at placed where located at placed at place where there was constant pedestrian flow and they had huge windows to display the merchandise.

Industry analysts were of the opinion that Zara could not continue with its supply chain model for too long. Analysts cautioned Zara against aggressive expansion. The disadvantage of vertical integration was the lack of economies of scale, where Zara was unable to reap the advantage of producing large quantities of production.
 

bhautik.kawa

New member
Zara’s supply chain management practice

Zara was founded by Amancio Ortega Gaona (Ortega), who was born in Leon, Spain, in 1936. Ortega worked as an assistant in an apparel shop and he set up his own fashion retail business named Confecciones Goa. Ortega wad created with democratizing fashion in spain, he was responsible for making designer clothing accessible to the masses.

According to a survey conducted by Interbrand, Zara was the only Spanish brand to be featured in the list of ‘the 100 top global brand’ in 2005. It introduced about 12000 designs every years, the shelf life of each design was about four week and it was customized in accordance with the data send by them every day. the key to Zara’s success was its vertically integrated structure where design, production, distribution, and retailing were integrated.
Zara went on to become the flagship brand of the holding company, Industrial de Diseno Textil, SA, popularly called Inditex, which was founded in 1979.according to Inditex,, “Zara is a high-fashion concept offering apparel, footwear, and accessories.

One of the secrets behind Zara’s success was its ability to spot emerging trends and react quickly. The store managers were selected carefully as they had an important role to play in providing the crucial information which formed the base for new design. The designs tram who traveled across the world looking for new designs and the emerging trends. Zara had three designs center one each for men’s, women’s, and children’s apparel. The store managers across Zara’s store placed orders twice a week, on Wednesdays and Saturdays in southern Europe and Spain and on Tuesdays and Fridays in other part of the world. They collect information from different stores and then fed into a data base and each store specialists was responsible for the group of stores. They take feedback from store manager and based on the feedback, the store specialists provided the designers with an outline of the new design.

Depending on the style and size to be produced, the fabric was cut at Zara’s own high-tech automated cutting facilities. Zara has its own flexibility production process so that when demand for any desings was low; Zara was able to stop its production. The company considered several factors like expertise, cost, and especially time sensitivity before opting for outsourcing.
The distribution center had two levels and was fully automated. On one level was the section on folded appeal packed into cardboard boxes. On the other level were garments placed on the hangers. And also there were two belt system one for folded and one for hung garments.

Zara was very particular about the location of its store. The stores were mostly located in prime location across the worlds. Zara planned its store windows and displays carefully. The display of cloth was given prominence in the stores. The cloths were organized by color rather than the types of garments. Zara’s entire store was located at placed where located at placed at place where there was constant pedestrian flow and they had huge windows to display the merchandise.

Industry analysts were of the opinion that Zara could not continue with its supply chain model for too long. Analysts cautioned Zara against aggressive expansion. The disadvantage of vertical integration was the lack of economies of scale, where Zara was unable to reap the advantage of producing large quantities of production.

Hi sunanda,

I am also uploading a document which will give more detailed explanation on the Agile Supply Chain Zara case study.

Please check below in attachment.
 

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