Committee, which assists it in the discharge of its supervision and. In this way, we reduce our greenhouse gas ghg emissions and help mitigate their effects. Communication to industriall global union of the inditex supply chain. Zaras supply chain success story zara is a spanish fashion clothing manufacturer and retailer, formed in the 1970s it is known that only two weeks are required for zara to complete the development and shipment of a new product to its stores, which outweighs the average of fashion industry of six months, thanks to the. The fragmented supply chain a discussion on the latest research findings into information flow in supply chains. Find the best essay sample on supply chain case study. Master of engineering in logistics and supply chain management. The aim is to verify the traceability of the supply chain based on analysis of the information gathered from the manufacturer management system. Just in time, quick response, postponement, local sourcing and production are some of zaras supply chain practices that help it achieve excellence in supply chain. The company practices a coopetition strategy of enhancing efficient collaboration with suppliers. The following statement by inditex gives the first hint of this exclusive strategy. We work with suppliers across 43 different countries to source most of our products 57% of the factories we work with are close to our headquarters in arteixo a coruna, spain, mainly in spain, portugal, turkey and morocco.
Despite the higher costs, in the fashion world the ability to react quickly is key. In 2017, inditexs supply chain included over 1,800 suppliers and 7,000 nonexclusive factories, employing more than 2 million people most of them women. Our sourcing of products and raw materials follows the most stringent social, environmental, and health and safety standards. Zara, the flagship of the inditex group is created 80s. Zara makes sure that each element of the supply chain network adds value to the entire.
Zara supply chain and valuecreation makrand agrawal b43 palash vermae35 sai praveend23 2. The secret behind zara and uniqlos supply chain models. Zara supply chain management mona singh 14868329 aut university mepm 2015 zara supply chain management table of contents 1. Whirlpool corporation the evolution of a supply chain. So if, for example, mens cardigans go out of fashion, uniqlo might simply convert them into jumpers or scarves, meaning that bottlenecks in the distribution section of its supply chain are drastically reduced. Jeff bezos and his organization have found a way to optimize nearly every piece of the supply chain puzzle from warehousing and inventory management to. It has been in existence since 1975, and its supply chain has been among the key contributors to its success. Keywords supply chain management, agile supply chain, zara case study analysis. The strategic plan for a stable and sustainable supply chain 20142018 includes identifying and properly knowing suppliers and manufacturers, performing exhaustive assessments and helping them to improve and optimize the social and working conditions of their employees, thus ensuring their sustainability and adjustment to the standards required by inditex, creating stable and longterm.
Purpose to analyze zaras success due to its supply chain how it correlates with valuecreation for the company. Inditex, the worlds largest clothing retailer and owner of the zara chain, faces growing competition from younger, onlineonly players like and missguided. The key to zaras ability to establish an agile supply chain rests on the following unique approaches. Ensure healthy lives and promote wellbeing for all at all ages. The new entrant threat is more from new companies that dont have a lot of systems to rework. Inconsistency in fashion brought down many a clothing store, but swedish fast fashion giant hennes. For the love of physics walter lewin may 16, 2011 duration. Operations management of inditex and its retail zara. Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zaras current supply chain strategy challenge 3 craft a future.
Inditex supply chain management inditexs operations use a vertical supply chain which is considered a very different and unique strategy in the fashion industry. Its imperative to look at zaras impeccable supply chain strategy which. Identification of the supply chain the first step towards ensuring sustainability in the supply chain is to identify its components. Strategic techniques that differentiate zara from other fashion brands. We foster the rational and efficient use of energy throughout our value chain. Confecciones goa is constituted as a factory to supply wholesalers 1975.
The commitment to ensure safe and healthy work environments to promote the health and wellbeing of workers is key to inditex s supply chain management. It has grabbed the attention of the public with its vital designs and appealing outfits. Zara looks to technology to keep up with faster fashion. Knowing where our articles are produced is what we refer to as traceability, an essential principle that allows us to know the. Digitalization of zara and fast fashion technology and. Here is everything you need to know about zara supply chain management, the strategy that this industry used to become successful in the market. Rethinking their supply chain strategy, zara will face. We regularly share the complete list of our supply chain at all levels and processes with industriall, including purchasing volumes and sustainability compliance levels. The retailing success of zara can be partly attribute ted to its excellent supply chain management. In 2007, retailers around the world cut prices and closed stores with the credit crisis in full swing. Pdf operations and supply chain strategy researchgate.
Zaras strategic capabilities and value chain analysis. How zara fashions its supply chain emerald insight. Inditexzaras superresponsive supply chain reduces bullwhip effect. Effective and efficient techniques of zaras supply chain model. Biodiversity strategy pdf, 210kb our biodiversity work is closely intertwined with our actions to reduce energy consumption and improve water quality. Zaras overarching strategy is achieving growth through diversification with vertical integrations. Created using powtoon free sign up at youtube create animated videos and animated presentations for free. Working to make sure that all of the women in its supply chain can enjoy the best conditions and the same opportunities as men is, thus, a top priority for inditex. Zaras supply chain management analysis provides deeper understanding of internal value chain.
In 2015, inditex s supply chain was made up of 1,725 suppliers in 50 countries linked to 6,298 factories. The main key to their corporate strategy is their sc strategy. For example, our commitment to the zero discharge of hazardous chemicals in our supply chain helps to protect the biodiversity of rivers and marine ecosystems. Always update books hourly, if not looking, search in. How zara grew into the worlds largest fashion retailer. Zara is the flagship company of inditex, the global spanish fashion retailer inditex, 2009. Zaras procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes. Zara supply chain analysis the secret behind zaras retail success.
The commitment to ensure safe and healthy work environments to promote the health and wellbeing of workers is. This strategy is cheap but creates a long supply chain. Inditex is a largest fashion ground in spain and owns 9 brands around the world, such as zara, massimo dutti, bershka and so on. How zaras winning strategy is disrupting the indian. This typically can be said to be an emergent strategy as the zara store today was not an intended strategy. Mass retailers follow a lowcost broad target strategy, and squeeze suppliers as much as possible. Supply chain strategies 111 supply chain planning encompasses a comprehensive perspective of business operations suppliers supplier supply chain strategy and network design regional and global collaboration organisational design crossenterprise supplydemand planning supply chain performance measurement. However, technology can play an important role in supply chain management and. This book about supply chain management scm uses the strategystructureprocessperformance sspp framework and includes cases from various industries such as automobiles, personal computers, office equipment, airconditioning, tobacco, chemicals and cosmetics, and casual fashion retail. Pdf supply chain management of zara mona singh academia.
The case of spanish fast fashion retailer inditexzara article pdf available in international journal of business and management 5. I believe the supply chain strategy adjustment is difficult to execute in isolation of the fundamental strategic direction. Inditex plan 20112015 there are the objectives on the firm relating to the water and natural resources management. To this end, inditex develops it tools that allow it to enhance supply chain traceability and provide the teams involved with secure and effective access to the. While many retailers design and produce around 80% of their seasons inventory, zara. Since the company chooses to hand the process of design, production, and distribution all inhouse its retail stores are then able to react much faster to the changing trends in. Zaras supply chain management model secret behind zara. As described in a case study of zaras supply chain, the company is vertically integrated, controlling most of the processes in its supply chain. Very sophisticated supplychain system based on their it system. When the system could not satisfy demand, a plan b involving manual. Global supply chain strategy, cisco systems andrew spence, supply chain business development director, oracle. This forms the basis for all the groups processes and is present at all stages of the value chain. The case study revolves around zaras supply chain, which is a retailer based in spain and deals with accessories and clothing.
Inditex zaras superresponsive supply chain reduces bullwhip effect. On the one hand, they consist on analysing the water footprint of products and promoting a more efficient water consumption at own manufacturing centres, stores and throughout the supply chain. Zaras supply chain operations support its strategy and philosophy of providing fashion that accurately reflects. Inditex, on the other hand, sources more than half of its products from spain, portugal and morocco, creating a short, manageable, and more responsive supply chain. The first store opened by accident in 1975 due to a large pyjamas order cancellation. Inditex says it works with unions and other organizations to have the most respectful supply chain and audits all of its partners every year, but like most major fashion companies that.
Zaras supply chain is a huge barrier to entry for incumbent retailers. Its more than a supply chain, its a different business model. The intent of the meeting was to discuss zaras current strategy and. Spains inditex, the owner of zara fashion brand, saw the brands net profit surge more than 70 percent in india in 201718, even as the worlds largest fashion group grew at one of its slowest rates in the country amid increasing competition from global rivals. The successful implementation of an integrated supply chain strategy. According to the apics dictionary, 14th edition, the strategy of an enterprise identifies how a company will function in its environment. Its customercentric services, leading speed, customized technology, logistics vertical integration and economies of scale grasped from its parent company, inditex, its are the key to its success. Get ebooks supply chain management on pdf, epub, tuebl, mobi and audiobook for free. Zara has gained popularity through its unique approach in supply chain management. Sustainable management of the supply chain inditex.
Inditex has a permanent commitment to innovation in all areas. Nearly all supply chain leaders we talk to these days want to get on top of the digitization wave that is sweeping our economy and world. Zara operates a marketorientated business strategy that is based on satisfying customer needs. Inditex and the sustainable development goals inditexs contribution goal 3. Upon implementing the human rights strategy, the board is supported by the audit and control. Inditex and the sustainable development goals inditex s contribution goal 3. This chapter explains the differences in these three strategy types. The components of the amazon distribution strategy. Other benefits include reduced manual labour by up to 30 per cent and time spent on. Gives direction to and helps align supply chain strategy. There are more than 1 million books that have been enjoyed by people from all over the world. The role of the advisory group is to provide input to the overall strategy and work done by the global compact office on the issue of. Whirlpool corporation the evolution of a supply chain recently, whirlpools management took a more customercentric approach to analyzing its supply chain and began benchmarking its supply chain against other companies to identify best in class practices. Secondly, jit has provided uniqlos supply chain with an agility that sets it apart from most of its competitors.
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