Supply chain is the key to success

Zara’s fast fashion is very famous in retailing industry, but this peculiar way of selling clothes is not replicated easily by Zara’s competitors. Actually, it is Zara’s unique supply chain that has paved its foundation to be successful.

Zara’s design, manufacturing and distribution system is extremely centralized as it promotes the trend of fast fashion. By establishing an effective and efficient supply chain, everything related to Zara’s fashion is coordinated in a coherent way that cannot be influenced by other factors since it is already highly sophisticated. Zara is able to deliver the right goods to the right places at the right times, that is why Zara is always more sensitive and responsive than its opponents in the fashion industry. Retailers’ inventories are replaced by new ones very frequently to make sure that its consumers stay interested in Zara’s continuous supply of fresh goods and services.

Moreover, Zara executives have invested in its technology to generate additional capacity that allows their factories and plants to quickly adapt to sudden and urgent production changes, this is amazing in the sense that not every firm is able to do this.

Zara’s success is based on its fabulous creation of its unique supply chain that combines design, manufacturing and distribution perfectly, thereby building a long-run competitive advantage. Therefore, supply chain is the key to success.

For more information: http://www.businessweek.com/articles/2013-11-14/2014-outlook-zaras-fashion-supply-chain-edge

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