Zara Supply Chain Case Study

4256 Words18 Pages
Issue and revision record ContentChapter Title Page IntroductionThe Fashion Industry The fashion industry is rapid, complex and ferocious. Few industries have a greater need for responsive and rapid design, production and delivery lead times while also cutting costs. The high product variety needed to succeed in this industry generally requires a significantly large and changeable supply base, thus it is a good example of network competition (Christopher and Towill, 2000). An overview of some of the characteristics and risks associated with the fashion industry, as highlighted in the relevant literature, is provided in Appendix A. ZaraZara, a wholly owned subsidiary of Inditex, is leading the other global fashion brands through its innovations in supply chain management. Their supply chain structure has evolved, from its almost accidental beginnings, to becoming a pioneer in the industry, maintaining Zara as the envy of their competitors. Furthermore, the Zara business model has allowed rapid expansion through essentially allowing the organization to operate with “negative working capital”. Q1 Word Count: 203 WordsThis report analyses the current supply chain processes utilised by Zara and reasons for their success, in addition to providing recommendations for the future management of risks within their business model. Supplementary information regarding the three main strategies employed by supply chains (Lean, Agile and Leagile) is provided in Appendix B. Zara’s Supply Chain – The focal point of their successZara deploys a unique approach in its industry toward supply chain management. This has enabled the company to gain a distinct competitive advantage. Zara’s vertically integrated supply chain system ensures that the latest designs are in their stores worldwide, with the minimum time from conceptual design to sales till. The company produces

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