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The integration of numerous suppliers, producers and consumers into one business model in the form of a supply chain can yield significant benefits. However, none of the potential rewards will be achieved without effective supply chain management.
This complex form of management requires extensive monitoring of supplies and frequent ordering of new inventory in order to meet customer demand. In such cases as Zara, much flexibility is required in order to meet the dynamic demand of its target market (those who are up to date on the latest fashions). Furthermore, the company requires the ability to foresee the future of fashion. This ability comes only through extensive research on customer trends and analysis of this information in order to form hypotheses. These hypotheses are tested in the form of prototypes which are then judged by Zara employees and tested in the market in small numbers.
Without this level of thoroughness, the supply chain would surely fail in the fast-paced fashion industry. Nevertheless, the business model always has the chance to fail with the constant introduction and decline of fashion trends.
My friend, Kinshuk Adhiya, posted a related interesting blog on Zara. Click on his name to check it out!
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