Zara V’s Benetton.

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Arguments Zara v Benetton supply chain management strategies This essay aims to examine how Benetton and Zara two separate fast fashion retailers, operate their logistic activities. By using the current literature this essay compares and contrast’s their different approaches to their supply chain logistics. It highlights the value and importance of buying and supply chain management whilst also suggesting potential area’s for improvement. The essay begins with a short overview of the two companies then main body focuses on contrasting and analysing four separate strategies used by the two companies within their supply chains; integration, quick response, postponement and outsourcing. Lastly the essay makes several suggestions for improvements that can be made to their supply chains and finally concludes. Zara is a Spanish high street fashion retailer apart of the larger group known as inditex David Walters(2006). It was founded in 1975, the first Zara store was opened in La Coruña, in Northwest Spain. It now operates in 78 countries and has a network of over 5578 stores in upscale locations in the world's largest cities Key note (2012). It offers men, women, children and homewares’ to young savvy trendy consumers. Its supply chain is an end to end process which Zara have completely integrated Lopez and fan (2009). Benetton is an Italian high street fashion retailer founded in 1965 Dapiran(1992). Benetton is now present in 120 countries around the world and networks over 6,500 stores. (Benetton website) Their products include women swear, menswear, children swear. Their clothes are basic and the brand is aimed at the modern minimalistic consumer. The Benetton supply chain is strong upstream integration with a vast amount of their retail outlets run as franchises. Arnaldo et al (2001) With increasing competition, and rising bargaining power of

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