Zara case study supply chain forum

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Aug 21, ArticlesSupply ChainSupply Chain Strategy 0 comments Effective supply chain strategies are essential to the performance of most businesses. Surprisingly, many businesses, even at the top end of town, have supply chain strategies that are misaligned to the business goals or have strategies that are poorly articulated and communicated within the business.

This just drives poor business performance. This article will take a pragmatic approach and provide insights for developing a supply chain strategy that not only meets the needs of your business, but also drives real service and bottom line improvement.

Building and Implementing Supply Chain Strategies that Work Firstly, we need to appreciate that the supply chain strategy forms only one part of the overall business strategy and takes its place along side other strategies such as; marketing, new product development, human resources, information technology and finance.

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However, these strategies must all link directly to and support the overall business strategy. Appreciate that businesses all have different strategies and this drives the need for different supply chain strategies. By looking at examples of retailersthe picture starts to build.

Some retailers might be targeting basic needs, whereas others might target high fashion and self-expression. Whereas solutions focused retailers such as Home Depot or Bunnings must focus on high availability and good range management.

Mass retailers such as Tesco or Wal-Mart meanwhile need efficient low cost supply chains to compete in the market place. Looking away from retail, businesses such as Orica Mining Services, who supply bulk explosives to the mining industry, also offer services that could include providing drilling crews, survey crews and shot firing teams.

Companies like Orica provide these products and services in some of the most remote parts of Australia. This indeed needs a very different supply chain strategy to maintain appropriate levels of service, whilst controlling costs.

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Whilst in most businesses an appropriate balance of cost and service is the goal, in some the supply chain cost takes a clear second place to maintaining continuity of service. Clear examples of this service supremacy abound in the Healthcare sector such as the Red Cross Blood service.

Here, the cost of providing a life saving blood product to remote hospitals and surgeries is almost immaterial. Saving lives and maintaining critical supplies is the primary objective.

Case Study: Zara's Supply Chain Success Story

In any supply chain, there are a multitude of key functions and processes on which to concentrate. The danger to avoid is being too blinkered and losing sight of the big picture. So buying well stands out at a clear priority.

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How do you think Inditex should plan its growth- focus on Zara and existing chains? It seems that Inditex management has pursued a strategy of focusing on Zara and existing chains.

Whilst at the customer end of the supply chain, the focus must be around service and product availability. Good supply chain management does not focus solely on IT systems, warehouse productivity or outsourcing options. Good supply chain management focuses on the results delivered at the customer end; good operational management takes care of the details.

The ends, rather than the means to the ends. The end game will vary from business to business and can be thought of in terms of the strategic imperatives for the supply chain. Once these strategic imperatives are identified and affirmed at the most senior levels of the business, developing an appropriate supply chain strategy becomes far easier.

These strategic imperatives will vary by industry and business and be guided by the business objectives, but some examples are offered here to illustrate the concept. A Building Products Business: These strategic imperatives must be developed by the business and embraced throughout the business, so that it becomes almost a jingle or mantra within the business.

These are far more than mere advertising jingles; they drive the whole focus of the business and the supply chain in an agreed direction.

Supply Chain Trade Offs Good supply chain management requires knowledge of the key trade offs within the business and informed decision-making.

With the supply chain strategic imperatives nailed down, many often silo focused decisions can be avoided, as everyone has a clear focus on the end game. Some businesses still fall into the trap of making strategic and tactical decisions based on a one-size fits all approach to the supply chain.

It is important to understand the need for flexibility and adaptability within any supply chain, but this is forgotten all too often. Evidence still abounds of standard service policies for all customers, and standard sourcing and channels to market approaches. Value stream thinking can be useful here to illustrate the need for flexibility and adaptability.

Taking a grocery retailer as an example, there are products within the range that have very different demand characteristics and management needs. These are often split into continuity products, non-continuity products and seasonal products.

Continuity products have steady predictable demand year round and are pulled through the supply chain by customer demand. Non-continuity products meanwhile might require greater life cycle management such as in fashionand may typically be managed with an initial push allocation, followed by pull replenishment based on sales.

Finally, the seasonal products require more focus in terms of seasonal and critical path planning to ensure availability in season and minimal waste or mark down at season end. Any supply chain strategy needs this pragmatic approach to the lower levels of detail and an acceptance that plans may and will change over time as the business changes.Effective supply chain strategies are essential to the performance of most businesses.

Surprisingly, many businesses, even at the top end of town, have supply chain strategies that are misaligned to the business goals or have strategies that are poorly articulated and communicated within the business.

Apr 28,  · Executive Summary. This report aims to study the supply chain management and logistics of fashion retailer, Zara, to boost customer value.

The concept of sustainability and competitive advantage is considered with other business models and compared with successful and unsuccessful company. exercise W93C January 25, Just Baked™ Inventory Management—Exercise Just Baked™ is an upscale, specialty cupcake bakery headquartered in Livonia, Michigan.

The main reason that Zara are favorite in expended internationally by wholly-owned stores is because Zara believe that the controlling a large part of supply chain which include own its own store is the only way to achieve the shortest lead time.

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