Well-Managed and Responsive Supply Chain System of Zara Clothing Company (Essay Sample)
It's about responsive supply chains: Zara Clothing Company Case Studysource..
Zara Supply Chain
Responsive Supply Chains: Zara Clothing Company Case Study
Located in Arteixo, Galicia, a giant Spanish fashion retailer, and manufacturer, has remained committed to fulfilling clients' needs by consistently developing new designs to maximize user experience through its 1,763 stores worldwide. A hybrid supply chain approach is essential for businesses in today's global, competitive economy because it allows them to run supply chains that are agile and lean (Aabed, 2017). Our Supply Chain is dynamic and versatile. It also integrates various Lean aspects through its operations, allowing the business to benefit from using a vibrant manufacturing and distribution model. With the current ever-changing, unpredictable, dynamic, and aggressive world marketplace, operating a hybrid supply chain could be in the company's best interests. Our supply chain is an excellent illustration of strategic reengineering since individuals, procedures, and activities all work together to promote a time-based approach.
Supply and Demand Aspect of Zara
Because of its short turnaround time, the company's supply chain responds rapidly to demand, allowing us to stock additional trendy clothing throughout the stores globally. In terms of materials management and supply chain management, it uses a pull model. Based on sales volumes and latest developments, the company produces up to a thousand models annually in total11, 000 different designs. It tracks consumer spending in stores to determine and comprehend which product designs are most common and afterward optimize into the following styles accordingly (Aabed, 2017).
Small scale manufacturing necessitates fewer quantities available stores; this scarcity ensures demand remains high. The company does have a high turnover rate, generating limited portions of each commodity utilizing similar materials in differing respects. The cycle of innovating and bringing the manufactured product into its stores takes 4 to 5 weeks. It makes it easy to instantly determine which designs are popular as a result of this. The business flawlessly manages and operates all operations, allowing for time reductions to the minimum level (Fadaki, 2015). It is indeed a perfect way to experiment with new ideas to see how well they'll sell.
Potent IT technologies assist Zara's distribution at its central distribution hub. All merchandise must return to Spain, which is the core spot. It is then allocated to different nations and outlets, depending on each location's specific demands and specifications. The company takes only 14 days to launch a new design and bring it into outlets, and it updates its 1,763 outlets twice every week. It has created an extremely flexible supply chain that allows new outfits to be delivered quickly as a fashion arises. Having more types of designs in stores equals more options for the customers (Aabed, 2017).
Benefits of a well-managed Supply Chain system
Well managed supply chain system ensures distribution efficiency and timely delivery of new products and trends to the final consumer (Niknamian, 2018). Managers can request orders twice a week for their respective outlets. Products are packed
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