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ZARA’S SUPPLY CHAIN
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ZARA’S SUPPLY CHAIN MANAGEMENT PRACTICES
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FOUNDED BY : AMANICO ORTEGA GAONA BORN IN : LEON, SPAIN IN 1936
A SALE FORMAT OF INDITEX GROUP - ONE OF THE WORLD’S LARGEST FASHION DISTRIBUTOR.
AMANICO ORTEGA PABLO ISLACHAIRMAN FIRST DEPUTY CHAIRMAN & CEO
ORIGIN OF ZARA
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INTRODUCTION• Ortega Worked As An Assistant In Apparel Shop And Set Up
Its Own Fashion Retail Business.
• 1963: Started Manufacturing Housecoats With Name As Confecciones Goa .
• 1975: Estd A Small Outlet In His Factory And Called Outlet As Zara.
• 1979: Estd A Company With Name As Industria De Diseno Textil ,Sa, Whose Flagship Brand Was Zara
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SUPPLY CHAIN MANAGMENT
• Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers .
• Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished
goods from point of origin to point of consumption.
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SALIANT FEATURE
• Customize Retailing• Vertical Integration of Production System• Exclusive Production • Involvement of Manager, Staff and Owner • Reduce time due to Team Work• Policy for Franchisees.
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INFORMATION FLOW FROM CUSTOMER TO COMPANY
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DESIGNING
• Adapting new design• Shelf life of design• High Fashion concept• Always Introduce fresh design• Designer travel world wide• Computer Aided Design
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Production
• Demand based production• Flexibility
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DISTRIBUTION
• Central site for distribution• High accuracy in Shipment• Efficient Supply Chain• Own Railway Infrastructure• Straight away display of product
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STORE OUTLAY
• Uniform store outlay• Store Outlay at Prime location • Store window designer • Display of clothes
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ADVANTAGE
• React quickly to market demand• Fast Supply worldwide• Anticipation of product • Product quality and design• Highly Flexible Production System• Automated Distribution System• Low Risk for limited product• Supply chain for maximize revenue• Pull Strategy• Maintain Low Inventory
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DISADVANTAGE
• Higher Cost-Distribution -Labor
• High competition• Lack of economies of scale
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