Zara and supply chain

Zara was founded in A Coruña, Galicia, Spain in 1975 by Amancio Ortega. In the beginning Zara clothes offered affordable replicas of expensive designer clothing. In the 1980s Zara’s founder Ortega began to make adjustments to Zara’s manufacturing, distribution, and design strategies to help create a responsive supply chain. These adjustments to Zara’s supply chain proved to be successful and allowed them to open retail stores in more than seventy three countries. Today Zara is the world’s largest fashion retailer which is due to its vertically integrated value-chain and responsive supply chain.
It is a well-known fact that Zara employs a team of over two hundred designers to implement the company’s “fast fashion” design principles. Without an efficient, well-planned, and organized supply chain to manufacture and distribute their clothes Zara could employ two thousand designers and it would not matter. Zara’s supply chain is what allows them to pull their clothes to retail stores and ultimately to the customer. Zara’s manufacturing process is similar to the just-in-time processes Toyota implements in car manufacturing. In fact in the early 1990s Zara collaborated with Toyota’s operations consulting firm to help install a just-in-time system in Zara’s manufacturing factories.
Zara’s procurement process begins in Europe and China where they have long established relationships with suppliers in Europe and a promising newly established relationship with China. When Zara procures fabric half of it is undyed in an effort to provide maximum design flexibility. Zara’s vertically integrated value-chain allows them to continue to cut cost in their supply chain. Comditel, which is owned by Zara’s parent company Inditex, does all the d...

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...e world. The use of just-in-time systems they have been able to meet and exceed customer expectations. Zara’s procurement processes, allows for maximum design flexibility and creates significant value for their supply chain. Zara’s distribution system is second to none in their industry and it allows them to quickly and economically move merchandise down the distribution channel. Zara’s retail stores are the face of the company and customers are able to reap the reward of Zara’s efficient supply chain. Zara’s two hundred plus design team are also able to reap the reward of their company’s efficient supply chain. The efficient supply chain allows them to create a high volume of new designs without having to deal with bottle neck situations. Zara’s responsive supply chain allows them to differentiate themselves from their competitors and have a competitive advantage.