Operation management of ZARA

Zara is a Spanish fashion chain stores ,   which is one of the largest international fashion brands of Inditex . Nowadays buyers want to see a new trends quickly . Therefore , the strategy of “fast fashion” make Zara successful and their operation management and supply chain are their competitive advantages. In that case, Zara have to manage 3 criteria : 1)decreasing inventory 2) increasing resource that we used 3) time overtaking. Their supply chain consists of 4 stages: First, the company buys fabrics in 4 different colors and then they can order what they need from suppliers that are very close to the factory. In next step, Clothes are ironed and packed. Finally the items are ready to delivered. The vertical integration of their production system enables Zara to have new items in all of the stores just between two or three weeks. In terms of managing inventory, the company figures out the quantity that should be delivered to one retail store. So, it allows Zara to deliver more but in small amounts. It means if a product does not sell well , these small number has been shipped and replaced with new ones. Delivery time influences the company image .with twice a week supply to stores , Zara is the best in fast fashion and just-in-time strategy. Another aspect that Zara consider is responding fast to the changeable demands and all possible variables like sales forecasting and weather conditions and so on. Zara’s distribution is quite expensive than other retailors and mainly works by planes and trucks and that is why they can delivered items in just 48 hours to stores so that can be their strength to have the newest models in comparison with other competitors and obviously it would be going to the first choice for customers . As the average spend per customer online was higher than stores , the company should focus more on E- commerce and its added value to Zara because enables customers to the new line of Zara products.

Zara proved a powerful supply chain in fast fashion industry and that shows by a close communication between designers and customers and their high speed in delivering items. In my point of view, Zara is successful by that speed and fast fashion and obtained lots of benefits such as increasing market opportunity and reduce all of the risks associated with forecasting and decreasing total costs.

 

Word count:388

Citation:
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