Zara’s Supply Chain Management Model – Secret Behind Zara

In the current generation, fashion plays a crucial role in each and every individual’s life. We are surviving in the trendiest 21st century wherein we can witness innovative perceptions of different people. There are some fashion freaks who often crave to appear like a fashionista. Fashion is a common phrase that we use so as to represent the style and tradition of a particular community or an individual. People look fashion in a variety of things such as dressing style, trendy accessories, footwear and a lot more. To be precise, the necessity of fashion depends wholly on the standpoint of a person. For every person, the first thing that entices an individual is your mode of dressing style.

Usually, women love upholding their fashion trend in their day to day life. There are some men who crave for fashion and adore very much wearing trendy vesture. There are people who wear a dress and will never wear it again and again. So, it’s all dependent on your viewpoint about fashion. Have you ever heard of Zara? Zara is a popular retailer company established in the year 1975. It’s the most fashionable and the world’s leading apparel industry. This industry owns popular brands that include Zara Home, Uterque, Bershka and more. Some of the folks have a perception that fashion simply belongs to the celebrities and other Television stars.

In fact, any individual who has a great desire towards their fashion can look trendy in a unique dressing mode. Zara helps you look fashionable in the present modern era. Zara has established itself in the market with its elegance and quality of products supplying to its customers. It has grabbed the attention of the public with its vital designs and appealing outfits. Here is everything you need to know about Zara Supply Chain Management, the strategy that this industry used to become successful in the market. Zara has gained popularity through its unique approach in supply chain management. Have a look!

Zara Supply Chain Management

 

About Supply Chain Management?

Amancio Ortega and Rosalia Mera have co-founded the Zara retail industry in the market originally in Spain. Later, they have expanded their services all over the world. It is a popular clothing industry that has more than 10000 stores all over the world. Inditex is the parent company of Zara retailer. The headquarters of Zara is located in Arteixo, Spain. zara.com is the official website of Zara. This company has commenced its expansion across the world right from Portugal. In Zara store, we can find clothing for men, women, and children. Based on the current consumer trends and the requirements, Zara releases the products and supply them accordingly.

Zara is the most compassionate supply chain that ships the latest products to the stores globally twice a week. Once the products are designed in the companies, they take at least a couple of weeks to reach the outlets. In Spain, Zara has its major distribution center from where they process all the items of clothing. Every year, Zara manufactures more than 450 million products. On the whole, Zara is currently running more than 2259 stores in and across 96 countries globally. Zara is quite popular for its trendy and affordable outfits. It manufactures and sells high-quality products to all the customers based on their preferences across thousands of stores. The small store in Spain has now expanded to a renowned fashion brand across a plethora of countries.

Are you actually aware of the success behind Zara fashion trends? This fashion retailer has managed to produce unique designs all over the world such as Japan, Canada, USA, and Italy. Zara had quickly adapted to the fashion trends at a rapid pace. As a result, it has become simple for this brand to change constantly based on the requirements of the customers. As we all know, fast fashion is the way of bringing the latest trends into the market at a faster pace at reasonable costs. In fact, Supply Chain Management is the wide range of activities that are essential to plan, manage and implement the flow of a product. It usually includes gathering the required raw materials, producing the material and finally distributing it to the customer in the final stage. When this supply chain management process is done in a systematic and cost-effective process then, a company will definitely witness victory and development.

How to Approach Zara’s Supply Chain Management?

Since some decades, people have cognizance about fashion and being trendy. The style of people has changed since ages but the significance of fashion among the people has remained the same. Currently, the notion of people about fashion has changed in a drastic manner. These days, people have started following western culture and the latest trendy clothes all through the world. Fashion is the initial pace that steps out people from poverty. Even if you have nothing important in your life and then you wear something trendy then you will definitely become the talk of the show.

To understand the approach that Zara planned to operate its supply chain management then, just read the below post. Can you guess how Zara had gained the power to standout remarkable from the different fashion rivals? Well, it has become possible through its exceptional supply chain management approach. We have included some of the key elements that have augmented to the capability of Zara in order to build an active supply chain. Check out the exceptional approaches as given below:

  1. Acquisition Methodology

The procurement team of workers at Zara often look after the number of raw materials that are required to produce clothes. As a result, it diminishes the junk. There is even a possibility to make use of the fabric once again instead of reselling a part of the cloth that didn’t fulfill the needs of the consumers.

  1. Closeness of Supply

The suppliers often maintain friendly relationships with the factories and industries of Zara. They try to tie up with Zara factories so that the team of Zara could gain the ability to order anything on a frequent basis.

  1. Feedback for Production

The store managers will give away feedback from the customers to the market specialists. They will, in turn, send the details to the design team as well as the production team. This form of speedy feedback thread delivers a rapid and accurate response to the market.

  1. Local Manufacturing

Zara often follows a unique approach completely different from its rivals. Rather than utilizing the third party service provider for the production in Eastern Europe and Asia, it aims to manufacture all its products in Galicia. Despite having a chance of acquiring lower cost production in different regions, they just focus on the faster time to sell the goods to the customers. This particular factor surpasses the remaining hurdles. More than 85 percent of its factories are kept vacant so as to make the work more efficient and adapts itself according to the changes that take place over the world.

  1. Demand Prediction

Zara tries to acquire the advantages of highly effective inventory management models that assist them to find out the precise amount of items required for each and every Zara store. This company will ship the products in less number of batches twice a week. This way, it generates an apprehension of shortage. It also emphasizes on the less number of items that are unsold. By sending the items in less quantity, there is feasibility to try unique styles in case if the experiment fails for the first time. This way, Zara has the ability to determine accurate product quite often.

Manufacturing and Supply Chain Operations Make Zara Unique in Its Industry

The ability to sustain in a business is the major challenge for any company. It has turned out to become the fundamental factor for the companies that are intended to have an impact with and grab the trust of the customers all over the world. The major elements that a company should keep in mind are the commitment to the customers and the commitment to the environment. Zara often places its efforts in order to make sure that the influence of environment on its business accomplishes the goal of the company.

By utilizing the available resources with utmost concern then, one can definitely succeed in business. The supply chain model of Zara includes raw material suppliers, fashion designers, clothing factories and the store managers. All these are derived from the Zara Global Distribution Center which is known as ‘The Cube’. Instead of spending money on arranging innumerable ad campaigns, Zara uses the money in opening new stores across the city. This retailer company makes use of a flexible business approach and strategy where its stores are franchized and owned by the partners and the owners.

Conclusion:

That’s all! This is everything you need to know about Zara Supply Chain Inventory Management model and the secret behind the success of Zara. We have included the functions of Zara at each and every segment, the approach of this company towards the supply chain operations and more. For more doubts, drop them in the comments section.

Author: Naveen E

This is E.Naveen Kumar full time Content Writer, SEO, Digital marketing Expert, founder of financesrule.com. Really enjoying playing cricket at free times. Being a Btech Graduation from Computer Science stream Selected full-time blogging as my Profession.

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