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Zara Supply Chain Strategy

In: Business and Management

Submitted By mkittaneh
Words 261
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SUPPLY CHAIN STRATEGY FOR ZARA FASHION Which is Zara's main competitive advantage? The blend of technology-enabled strategy that Zara has unleashed seems to break all of the rules in the fashion industry. That the company doesn’t outsources manufacturing to low-cost countries, it keeps huge swaths of its production in-house, enabling Zara to move faster to the style and fashion designs that the consumers are looking for, than its competitors. thethe main difference between the supply chain management and logistics from Zara and from it nearly competitors.
Zara’s supply chain is high vertically integrated and keeps most of its operations, including production at the same country (Spain), probably facing more expensive manufacturing costs, but eliminating transportation costs and the time, energy and resources it involves.
Some examples between Zara and its competitors are:
ASPECT ZARA COMPETITORS The average time from idea to appearance in store * 15 days * 12 times faster than Gap Most of the products you see in stores didn't exist three weeks earlier, not even as sketches Once or twice a season
H&M takes three to five months to go from creation to delivery Other retailers need an average of six months to design a new collection and then another three months to manufacture it Inventory Number of Designs
12 Inventory turnover / Year
12,000 Designs
Others between 3-4 times
Others Averages :4000-6000
An effective supply chain mainly consists in making information flow and making merchandise flow. How does Zara carries on these important activities that led it to its competitive advantage?
Inventory…...

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