Zara Case Study

ZARA Case Study

Group Members:

• Stine Hellebust

• Stine Nyseth

• Benedikte Stensrod

• Tessara Callaghan

• Lucy Wales

• Cassandra Hawdon

Why can we say that supply chain management is at the core of Zara strategy in the global market?

Supply chain management is at the core of Zara's strategy in the global market as it is its key ingredient in its recipe for international success. Zara's whole business strategy is based on its ability to observe, create, and distribute fashion to its global consumers as quickly and efficiently as possible. To do this, exceptional supply chain management is necessary, including integrating processes and technologies, as well as focusing on supply chain management within strategic, operational and tactical levels.

As mentioned by the Supply-Chain Council, supply chain management encompasses every effort involved in producing and delivering a final product or service, from the supplier's supplier to the customer's customer. It includes managing supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer.

Integrated Processes:

Zara has created an integrated process where several entities work together to plan, coordinate and control materials, parts and finished goods from suppliers to customers. Zara follows a structure that is more closely controlled than most other retailers, with most business elements situated in close proximity around its headquarters in Spain. This is done through Zara's "Fast fashion" system, which depends on a constant exchange of information throughout every part of Zara's supply chain:

→ From customers to store managers,

→ From store managers to market specialists and designers,

→ From designers to production staff,

→ From buyers to subcontractors,

→ From warehouse managers to distributors.

Zara's success relies on its integrated processes, as it creates a smooth transition throughout the supply chain. The methods will be explained in more details later on.

Integrated Technologies:

Zara further focuses on its supply chain management through its investment