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Supply Chain Management at Zara - Case Study Example

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"Supply Chain Management at Zara" paper discusses the supply chain management of one of the excellent organizations. It is a fashion provider that is known all over the world because of its success. This paper addresses areas of the supply chain and how they have contributed to the success in Zara. …
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Supply Chain Management at Zara
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Download file to see previous pages It can be said to be the process of attaining raw materials, production, storage and supply to the end-users. Every business or company has to employ a good purchasing and supply chain management if it has to succeed in its production. Supply chain management is important to Zara because it helps in recognizing the number of suppliers that can be accessed by the company, their location, the distribution centers, management of inventory and warehousing facilities. It also helps in determining the strategy to be used in the integration of information within the supply chain.

Zara opened its first store in Spain in 1975 and since then its stores gave grown into giants and are distributed all over the world. It holds about 1000 stores which have been successful. Zara’s success is contributed by its unique style in fashions and accessories as well as its supply chain management (Annual Report 2006). Decisions relating to the product to produce, when to produce and the volume to be produced are usually made by all the major stakeholders concerned. This includes designers, buyers, and market experts.

Over the years, the fashion industry has been undergoing substantial change. This has been a result of the increase in competition globally and the change toward the global supply sequence. The end-users play a major role in terms of selection of suppliers and in the decision making of products which is changing from being operational to being strategic. The increased number of retailers resulting from the emergence of new entrants in the market has led to increased competition. Consumers have become choosy due to the increase in the number of product options in the market. They now desire for an exciting shopping in innovative stores. This has led to increased operating costs on the side of retailers trying to match up with the customer need (Lowson 2002). Zara has been chosen for this analysis because of its success despite the stiff competition that is evident in the clothing industry. ...Download file to see next pagesRead More
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