Supply Chain Management and Zara

Topics: Supply chain management, Supply chain, Strategic management Pages: 39 (15011 words) Published: June 4, 2013
Business Strategy: Zara’s Strategic Vision
The ‘fast fashion’ is one of the most innovative strategies of Zara, is based on going faster than the idea itself. Zara’s power is its speed: moving from the tendency to have the item in the store hangers. The fashion industry was a balanced range of movement of business was almost non-existent and known, knowing that each season lasts three or four months, then there are four or six months of sales. The difficulty of the sector companies to change the trend involved high storage costs and the costs of destroying or selling the surplus to traders in markets, potential stock-outs, shortages or overstock garments. For consumers, the fashion industry were in equilibrium, you agree the rules of the game and in the case of the latest fashion season is very expensive and had good quality fabric, but if the purchase is not urgent there was the near certainty of getting the same item during the sales at substantial savings. In contrast, Zara has changed the rules, creates a need to purchase the product shortage. Inditex success is based on the store as the axis and core business, design as strategic key and the time factor in the manufacture of the goods. Each of the 3,250 stores shelves renewed twice a week, which gives an idea of ??its great flexibility. For Zara most important and which marks its success is to keep clients understand that if they see something they like should buy at the moment, because next week is no longer in stores. The idea is to create a climate of opportunism-scarcity. Zara’s competitive advantage, in part, is in logistics, production just in time ‘, has the ability to completely revamp everything in their stores in a few weeks. Inditex also has the advantage of storage in Europe, Zaragoza, their competitors have not seen the benefits of a logistics center relatively close to the distribution points. Zara makes its approach toward customers based on five pillars: • Your only option is to provide its customers a variety of smart choices. Customers are demanding products and services that meet their individual needs and business need to know how quickly provide these options. • Faster is better, provided that the rate customers pay. The period that Zara can get her fashion designs from the drawing board to the exhibitor of the store is between 10 and 15 days. It does this by using systems that effectively link customers with production and distribution divisions of the Company. The store employees capture consumer feedback on designs and colors and transmitted electronically to Zara’s designers, who do not stop traveling and visiting public places to detect trends. A few days later, the new designs are distributed to a network of small workshops subcontracted in northern Spain. • You can do the right thing without having to do everything. Check the touch points with customers (orders, delivery and service) have the information, knowledge and relationships, but no transactions, maintaining the analytical control of the formation of relationships, have the skills to manage the relationship between business- partners. • Treat your suppliers as partners. In a value network, companies need long-term relationships and one of the requirements is that they share part of the information. • Discover what customers demand. Clients expect what we call “perfect orders.” If submitted complete and on time, if you reach the place requested by the client, within a precise time frame and in perfect condition ready for use. There are also sectors that manage this type of strategy of ‘fast fashion’. The sector, which you frequently use this strategy is the electronics due to its ability to innovate, the need to attract customers through new products, different from previous versions, with more applications, utilities, functions.

Z A R A Affordable Exclusivity Strategies for Growth
1. Background
According to BusinessWeek,
"Zara was a fashion imitator. It focused its attention...
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