Supply Chain Management – Zara Fashion – At the speed of Ever-changing Fashion

Zara International was founded by Amancio Ortega and his wife Rosalia Mera in 1975. The company has it’s headquarter in Arteixo, Spain.

There was an interesting story how Amancio was forced to sell a rejected lot of dresses and how he finally decided that he would no longer export his goods (apparels) to others, rather will market the clothes himself. Fortunately, most of the outfits of that rejected lot were sold and this was a turning point of his life.

Zara Suppy Chain Market Coverage and Supplies around the World

Zara Suppy Chain Market Coverage and Supplies around the World

There were a lot of reasons why Zara Fashion became a successful brand. Here we’ll try to highlight a few:

  • Time to Market: The effectiveness of the supply chain of Zara has greatly reduced the Time to Market for the newer designs to less than 15 days.
  • Alluring Exclusivity: Since the Time to Market is less, Zara does not mind making a very few pieces of a particular outfit. This leads to exclusiveness, thus forcing the customer to make a purchase decision quicker.
  • Compete with Fashion Houses: Zara considers itself as a fashion follower and NOT fashion maker. Thus they only choose the successful designs to create more designs from it rather than experimenting. Thus saving R&D cost.
  • Supply Chain is Horizontal: The information and feedbacks of the designs they sell are smoothly sent to the top design divisions, so revision are quickly made.
  • Runs three parallel product divisions, men, women and children (thus no deadlock).
  • Designs of apparel are finalized within few hours. An open meeting of cross-functional teams is made to sit together and is made to finalize the designs.
  • IT and Supply Chain improvements have played an important role in cutting down the effective Time to Market.
  • Stock outs act as a favorable phenomenon for Zara International (somehow). Stock outs are considered acceptable as the Time to Market is less, due to this even when a customer faces a stock out, he/she may feel probably a better stock will arrive the next week.
Zara Suppy Chain System - Global Distribution Center Map

Zara Suppy Chain System – Global Distribution Center Map

 Due to all these factors, visits at Zara Store are increasing year by year.

One Comment

  1. supply chain management is indeed a very important and vital part of any business. I think that every link of the supply chain should be constantly audited and monitored for their effective performance.

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