Zara’s Logistical Capabilities

Zara’s logistical capabilities and how it distributes its inventory throughout the globe is another key element of the business operation model. The logistics model mainly consists of a mixture of stringent scheduling issues which factor in product packaging, shipment and modes of transportation. The current central warehouse in Spain distributed 400,000 pieces in a typical day (QUOTE CASE). These immense orders were always ready to be shipped within an acceptable strict time limit, which has the added benefit of deterring back orders within the supply chain. Most of the products were distributed in Europe, making it in the general vicinity of the main distribution centre & hence shortening the supply chain for a better reliable service. Tight scheduling is evident within their land distribution procedures through their trucks having timetables to accurately determine times when stock would be arriving or departing from a particular destination (QUOTE CASE). Outsourcing was also utilized when travelling far distances overseas to different parts of the globe. Once the shipment landed in a foreign country, it would be up to 3rd party companies to deliver the shipment to the required destinations (QUOTE CASE). This move to outsource logistics outside of Europe represents a large risk for Zara, as it may reflect badly on the company’s reputation & image if the shipment of the 3rd party contractors were to deviate from the agreed schedule (QUOTE p.68)

The success of Zara can be analyzed from the fact that the brand has expanded so swiftly in recent times that it has overtaken it s main rival in the industry that is GAP and hence become the largest clothing retailer in the industry.

As we have already identified that the main competitor of Zara is GAP and its performance as compared to GAP recent times has been phenomenal. The company has grown in stature because of the loyalty of their customers that are the proponents of fashion. This claim