Zara's Supply Chain Strategy

 https://www.supplychain247.com/article/zaras_fashion_retail_supply_chain_strategies

 

  1. Produce in small lot: small lot is the unique characteristics of lean manufacturing which is not the case here. The logic behind this is that small lot creates the sense of exclusivity. Customer need to make a quick decision otherwise the next day the products they want will be gone. So customer visits Zara’s stores to see new products more often and this creates the huge amount of traffic and revenue.
  2. Centralize design and product development: the norm in the apparel (and some other) industries is to develop new products by both in-house staffs and through merchandisers. In the latter case, suppliers need to send samples (through merchandisers) to buyers many many times. Elimination of this back-and-forth communication reduces the time to market drastically.
  3. Utilize work cell organization: each new product development team has its own designers, sales, procurement and production planners the same way as in a cellular manufacturing. This help Zara to streamline the internal communication a lot.
  4. Control scheduling strictly: at Zara, store managers can place order 2 times a week, shipments are prepared and delivered within 24 hours (in Europe) and products will be on displayed at stores the same day they arrived. Since everything runs in a stead pace, they can reduce a waiting time at every step of the way.
  5. Keep production in-house: Zara tries to stay away from low-cost country sourcing and make an investment in the in-house manufacturing as much as possible. The reason is that they believe the in-house production help them to increase the overall flexibility.
  6. Automate production and warehouse facilities: since Zara believes in time based competition, automation is the key to help them to increase the speed and the accuracy of the operations.
  7. Adhere to all rules: implementing any one of these rules alone is not quite effective. Then, they have to stick to all rules so the whole supply chain is running like the well-oiled machine.

Source: SupplyChainOpz

Comments

Post a Comment

Popular posts from this blog

A Case study on Tesla

Image
  A case study on Tesla, Inc : The world’s most exciting Automobile company | by Ashley Lobo | Medium T homas Edison’s lightbulb ushered out the gaslight era as completely as it ushered in the age of ele c tric power. But the gas companies didn’t fall victim to disruption immediately, and it could be argued they never entirely succumbed. When Edison’s invention first threatened gas lighting, incumbent firms borrowed the filament technology from the electric bulb to improve the efficiency of their gas lighting fivefold, starving Edison’s new company of profits for 12 years and nearly bankrupting him. Experts in disruptive innovation point to that kind of move to bolster a doomed technology as the last gasp of a dying industry, and of course they’re right: Edison and electric lighting prevailed in the end. But by the time the disruption was complete, gas companies, having bought themselves more than a decade of breathing room with their gas-powered lightbulb, had prepared a profitable ex
Read more

Marketing Mix of Subway

Image
Credit : Aditya Shastri    In-depth Marketing Mix Of Subway with Full Details | IIDE Subway is a fast-food franchise with locations all over the world. Salads and submarine sandwiches are available at this American restaurant. Doctor’s Associates, Inc. owns and operates this private company on a global scale. Subway wanted their customers to be able to make their own sandwiches.  In this case study, we will be discussing about the marketing mix of Subway in a detailed structure.  About Subway     Subway , which was founded in 1965 in Bridgeport, Connecticut, has grown at the fastest rate of any global franchise. As of 2021, Subway has a presence in over 100 countries and territories, with over 35000 restaurants. Customers can get a selection of excellent submarine sandwiches and salads from this American fast food restaurant franchise. Subway has consistently ranked among the top 500 franchises. Subway has adapted to various cultural demands by twisting offerings to fit the cultural fi
Read more

FMCG Distributor - a model for selection

 https://www.linkedin.com/pulse/8-critical-areas-you-must-focus-when-selecting-fmcg-ross-mari%C3%A9/ What is a Model Distributor? The Second module in the programme is  Model Distributor . A Model Distributor is the definitive picture of what an ideal distribution partner could look like for your organisation, in your industry, and your target market. The desired outcome of this module is a clear understanding and definition of what Industry and geo-specific Best in Class distribution looks like. To define your Model Distributor, you must: understand the general principles of what excellence in distribution looks like , understand what  excellence in distribution looks like in your geography , and you must take account of  your specific industry requirements and sensitivities . Your Model Distributor must take account of these three key areas. Why is a Model Distributor needed?
Read more