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84c5 zara s supply chain management practices 2003 version

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Arpit Rastogi
Arpit Rastogi

Zara was founded in 1963 by Amancio Ortega Gaona in La Coruna, Spain. It is known for its fast fashion business model and vertical integration of production. Zara uses a supply chain management system that allows it to design, produce and distribute new fashion items to stores twice a week based on customer demand. This pull strategy helps Zara reduce risks and costs while maintaining low inventories.

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OM Web Technology ZARA¨S SUPPLY CHAIN
OM Web Technology ZARA¨S SUPPLY CHAIN MANAGEMENT PRACTICES
OM Web Technology ORIGIN OF ZARA 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 ISLA CHAIRMAN FIRST DEPUTY CHAIRMAN & CEO
OM Web Technology 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
OM Web Technology 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.
OM Web Technology 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.
OM Web Technology INFORMATION FLOW FROM CUSTOMER TO COMPANY
OM Web Technology DESIGNING ? Adapting new design ? Shelf life of design ? High Fashion concept ? Always Introduce fresh design ? Designer travel world wide ? Computer Aided Design
OM Web Technology Production ? Demand based production ? Flexibility
OM Web Technology DISTRIBUTION ? Central site for distribution ? High accuracy in Shipment ? Efficient Supply Chain ? Own Railway Infrastructure ? Straight away display of product
OM Web Technology STORE OUTLAY ? Uniform store outlay ? Store Outlay at Prime location ? Store window designer ? Display of clothes
OM Web Technology 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
OM Web Technology DISADVANTAGE ? Higher Cost -Distribution -Labor ? High competition ? Lack of economies of scale
OM Web Technology

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84c5 zara s supply chain management practices 2003 version

  • 2. OM Web Technology ZARA¨S SUPPLY CHAIN MANAGEMENT PRACTICES
  • 3. OM Web Technology ORIGIN OF ZARA 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 ISLA CHAIRMAN FIRST DEPUTY CHAIRMAN & CEO
  • 4. OM Web Technology 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
  • 5. OM Web Technology 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.
  • 6. OM Web Technology 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.
  • 7. OM Web Technology INFORMATION FLOW FROM CUSTOMER TO COMPANY
  • 8. OM Web Technology DESIGNING ? Adapting new design ? Shelf life of design ? High Fashion concept ? Always Introduce fresh design ? Designer travel world wide ? Computer Aided Design
  • 9. OM Web Technology Production ? Demand based production ? Flexibility
  • 10. OM Web Technology DISTRIBUTION ? Central site for distribution ? High accuracy in Shipment ? Efficient Supply Chain ? Own Railway Infrastructure ? Straight away display of product
  • 11. OM Web Technology STORE OUTLAY ? Uniform store outlay ? Store Outlay at Prime location ? Store window designer ? Display of clothes
  • 12. OM Web Technology 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
  • 13. OM Web Technology DISADVANTAGE ? Higher Cost -Distribution -Labor ? High competition ? Lack of economies of scale