Zara Supply Chain Case Study

928 Words2 Pages

The following paper analyzes the supply chain strategies conducted by Zara, European based retail store, with the aid of “Zara Clothing Company Supply Chain,” a recent article that analyses Zara’s success through its supply chain. Further, it highlights the strengths and key practices that allow Zara to be able to have such a successful supply chain in regards to efficiency and responsiveness.

“Zara Clothing Company Supply Chain” (2016) is a study conducted by SCM Globe, an online supply chain design and simulation tool. The article highlights the main components of Zara’s supply chain and practices that have allowed them to developed a global comparative advantage over many other multinational retail corporations. Zara was founded in Spain …show more content…

JIT eliminates waste by finishing production just in time for delivery while reducing inventory holding cost. Thus, allowing them to also have short lead times given their vertical integration in which instructions and process are linked closely to each other in their supply chain. Therefore, short lead times enable Zara to “to offer customers more styles and choices, and yet still create an urgency to buy because items often sell out quickly” (“Zara Clothing Company Supply Chain,” 2016). In support, during class, we learned that short lead times are beneficial to a company because that increases efficiency and allows the final product to be ready for sale much …show more content…

While I had a good understanding of the supply chain components needed to achieve strategic fit without compromising cost or responsiveness, the article allowed me to dive deeper into the main elements that drive a company’s levels of responsiveness and effectiveness. Further, it allowed me to understand that each company is unique and must execute a supply chain that meets its corporate mission and vision. While Zara’s supply chain has allowed them to become one of the leading retail stores in the world, it cannot be useful for companies like Walt-Mart or K-Mart who are proactive and not reactive to changes in demand. In addition, I was able to place further analysis on the importance of customer criteria and brand loyalty when deciding a supply chain strategy. As well as been able to further understand that minimizing cost is not always the best strategy for a firm, thus, Zara places more emphasis in speed and

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