Topic > Fashion Retailer Supply Chain Model: Zara - 1438

Through the use of literary articles and other academic material, this article will examine strategic supply chain initiatives that give Zara an advantage over its competitors . The report will examine the supply chain model of other fashion retailers to show how Zara has mastered the supply chain model to gain an advantage over others. The report will also look at the following areas.i. Origins and history of the organization. ii. Examination of Zara.a's supply chain model. New product design.b. Production.c. Distribution and logistics.d. Store dimensions and layout. iii. Look into other street fashion supply chains. iv. Compare and haggle the results of Zara and other retailers. The overall aim of the report is to show how Zara, operating in a highly competitive market, has produced a unique supply chain model. This uniqueness has led to Zara's overall success and has helped make the organization a global success. Origins and history of the organization Zara is a sister company of the Inditex Group owned by the Spanish tycoon Amancio Ortega. Inditex is one of the largest fashion retailers in the world and its foundation dates back to 1963. Zara opened its first store in 1975 near Inditex's headquarters in La Coruña, Spain. The store featured similar low-priced products of popular and high-end clothing items. In 1979 the Zara brand had 6 stores. These stores proved to be a success and in 1988 he opened his first store outside Spain. However, by 1990 Zara had stores all over the world, for example in Porto, Portugal, New York and Paris. According to Inditex Annual Report 2012, Zara opened a total of 120 stores in 2012, reaching 1,925 stores in 86 markets worldwide. Zara sales i......middle of paper......logistics department. They are shipped according to time zone to allow Zara to better meet customer demand. Zara uses the services of third-party logistics providers to manage all its goods and deliveries. It takes two days to ship the goods by truck to European retail stores. Non-European shipments are shipped by air. When deliveries arrive in the store, the downstream process of the goods is simplified. The store will receive all orders ready to hang, all the assistance needed for the store is to hang the rail, remove the protective plastic cover and the items are ready for sale. Store Size and Layout Stores receive product delivery twice a week. These deliveries are based on information received from its stores around the world. This ensures that Zara always offers what the customer wants. These could be exciting designs or redesigned items to meet consumer demand.