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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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