Zara Supply Chain Analysis

1266 Words6 Pages
There is almost no business operation works separately. Every business operation must having connection and network with other operation. Every business works in tow important conditions the supplier and customer. They purchase from someone and they produce and sell the output to someone. The supply networks include the network of suppliers’ supplier and customers’ customer and so on. Suppliers of the organization will be having their own supplier and customers will be having their own customers. Supply network is a design of temporal and latitudinal processes carried out at facility nodes and over distribution links, which adds value for customers through the manufacturing and delivery of products. It comprises the general state of business…show more content…
Zara buys raw fabric from suppliers in Italy, Spain and Greece. Those suppliers deliver within 5 days of orders being placed. Inbound logistics from suppliers are mostly by truck. Zara has maintained its stand as a leader in the apparel industry and what makes it so profitable is it’s unique supply chain strategies. Zara uses the following principles to increase their net income and maintain a standing of being a brand that is both fashion forward and affordable. Supply Chain Suppliers are all close to their factories so Zara can order on a need basis. Zara buys fabric in only 4 different colours then they designs and cuts its fabric in-house. Clothes are smooth out in advance and packed on hangers, with security and price tags affixed Overnight trucks are used to deliver to European stores and airfreight is used to ship to other countries. The Key to Zara's success straighten up assimilated supply chain where design, production, distribution, and retailing were integrated. The vertical integration of Zara production system allows us to place a garment in any store around the world in a period between two to three…show more content…
Focusing on tactics that will increase a supply chain’s productivity is essential to achieving positive customer satisfaction. Zara is always striving to meet the needs of its customers at the same time as helping to inform their ideas, trends and tastes. The idea is to share responsible passion for fashion across a broad spectrum of people, cultures and ages. Sometimes companies may have issues in configuring supply network. There are two main issues involved in configuring the supply network first is Shaping overall supply network: It involves reducing the number of suppliers to the operation to develop closer relationship with suppliers. Second is the nature and extent of outsourcing: Deciding how much network operation should

More about Zara Supply Chain Analysis

Open Document