Zara Supply Chain Essay Sample

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1. Zara is a Spanish clothing retailer which has 1700 stores in all over 78 countries. 2. Zara has continually maintained its mission to provide fast, affordable, and fashionable items. 3. Zara’s supply chain has undergone tremendous changes in order to sustain its competitive advantage in today’s market. 4. Zara holds 6 days worth of inventory, while H&M holds 52 days, and Spanish retailer Cortefiel holds 94 days of inventory. 5. Launched approximately 11,000 new items per year, compared to 2,000 – 4,000 for H&M and Gap. 6. Quick input and output response with a Short product life cycles to reduce errors and improve current products. 7. Keeps approximately half of its production in-house and all the procurement staff for each clothing line is separate. 8. Difficult items are produced in Zara factories and by local subcontractors. 9. Factories operate on a single-shift mentality and can change quickly according to unforeseen demands. 10. Stores are electronically linked to the company’s headquarters. 11. Logistics system is based on two core concepts: speed and flexibility. 12. Effective and efficient transportation network.

13. High-velocity” shipping.
14. Currently building a new state-of-the-art warehouse and facility complex in Zaragoza, Spain. 15. Quick response in supply chain and Ability to distribute merchandise within 2 weeks. 16. In the future, Zara should increase its production outsourcing to Asian countries to reduce costs. 17. Overall, Zara seems to be heading in the right direction as the company is growing at a tremendous rate and does not show any signs of slowing down.

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