BLOG # 6 Blog Response to Michelle Lee: “Zara shows how important supply chain management is”

Click on the educational video of Zara’s supply chain management. VIDEO STARTS AT 0:33

I completely agree with Michelle’s blog post. Zara’s profits of 21.4 billion dollars in sales in 2012 has been growing substantially across all corners of the globe. Why is this? Zara’s ability to communicate its channel members through fast delivery and design of rapidly changing fashion trends has made this firm to surpass sales of many other successful firms such as Gap and H&M. Zara, having spent lots of research on supply chain management, gave them staggering amounts of profits that were unforeseen by its competitors.

Zara’s masterful supply chain management is a great example of how perfecting channel distributions can further maximize profit margins. Zara’s years of research and innovation has allowed their distribution channels to get the right product to the right place at the right time. In my opinion, this efficient process facilitates transportation and is a great topic to read about if anybody wants to learn about transportation and logistics. Zara pioneered the concept of fast fashion, which involves moving trendy styles from concept to shelves in a fraction of the time required by retailers. As for channel design, Zara has strategically and geographically located their factories near their headquarters in Spain to reduce shipping costs and time.

Zara’s ability to deliver and provide satisfies the (marketing mix) product, price, place, and promotional demands of its’ customers.