Materials change – The global markets and agile supply can provide various materials very briefly on different price. Bititci describes the difference between strategic and operational procurement in the table below. Click here to sign up. It looks at the process from raw materials origin to customer consumption. Developing procurement strategy and aligning it with the overall organizational strategy? Efficiency Zara is producing fashion outfits, this has low complex, but high uncertainty. The need of decreasing lead times and being flexible in fast fashion introduced involvement of suppliers in the process as being crucial to their ability to attain high levels of customer satisfaction Power et al,
By using quick response Zara aims to reduce both excess stock holding in the supply chain and risk associated with forecasting as product specifications are not finalized until closer to delivery Bruce and Daly, Zara is consider to be the pioneer in fast fashion, with its twice a week supply to its stores with new fashion items. We can’t find that page! After clothes are assembled and return from the sewing factories, they are distributed to Zara’s stores. It directly affects the supply chain and it is one of the reason concepts like agile supply chain and fast fashion emerged.
Zara Supply Chain Case Study Part 2
There are various ways the business can influence the SC. For a week the colorful outfits were replaced with back and dark colored clothes in Zara’s stores. To ensure that each order could arrive at destination punctually, laser barcode scanners, which are able to pick and sort sttudy 80 pieces of clothes with a error rate of less than 0. According to Cai-feng product and technology life cycles are likely to continue to shorten, while demand will be increasingly difficult to forecast.
Zara Case Study Analysis – Weaknesses
Zara is consider to be the pioneer in fast fashion, with its twice a week supply to its stores with new fashion items.
Those three directly affect pricing, customer satisfaction, and overall business values like profit, turnover, sales, etc.
On the other hand its agile supply chain gives all the benefits listed above. The new items in store keep people coming back every week and find new goods to buy.
Based on feedback new designs are made, prototyped and rated by the team. Delivery time influences the company image. All these facts allows Zara to expand its sales and profits over 20 per cent per year.
Product design Value for money Price Example: This is all carefully designed by architects, visual merchandisers suplpy designers. Strategic procurement Operational Procurement Goals: Product design Value for money Price Example: It consist of three steps: This review zara not consider unpublished papers, papers in non-academic journals, or papers case at conferences.
The raw data comes from quantitative and qualitative approaches. Agility — impact on the supply chain Agility is introduced as a response to the dynamic and turbulent markets and customer demand Prater et al, Logistic productivity Low Uncertainty 3.
In fast fashion, purchasing activities play a critical ahalysis through supplier selection and product decision-making, and indeed, buying is arguably changing from purely operational to much more strategic Bruce and Daly, For comparison, the usual times are from six to nine months Bruce and Daly, for far east clothing industry, 4 months for an international brand and only a week for Zara Zhang, The period when production was moved overseas, so business can take advantage of xupply labour is coming to an end, because fast fashion starts competing not only on price but also on time.
The outcome will be presented and discussed in the results section. Zara’s success is due to many reasons, e.
Agile Supply Chain Zara case study analysis_百度文库
Cas on feedback new designs are made, prototyped and rated by the team. The gathered raw data is analyzed in Zara’s headquarter, where design team, fast prototyping team, market specialists and buyers sit together in casd coupled teams. Cai-feng points at four pivotal objectives of agile manufacturing: On the other hand the high-end trendy Zara labels like Zara RTF, mainly consisting of up-to-date fashion outfits are produced in Portugal and Spain, meaning higher production cost and shorter lead times, but helping fast reaction on demand.
Managing relationships with critical suppliers and the rest of company? Every penny saved in aile is a profit, while every sales brings cost of sales. Elimination of stages in the supply chain Clothes shopping has its piks traditionally during certain periods of the year matching events like trade fairs, fashion shows, fabric events etc, organized around a two season approach to product ranges, with planning for product ranges based on previous sales data, starting as long as one year in advance of the selling season Barnes and Greenwood, In that sense Zara can be considered a typical agile company.
The Zara basic label is daily commodities with no shelf life, e. Part of the qualitative data gathering is direct customer feedback given to shop assistants daily. All these facts allows Zara to expand its sales and profits over 20 per cent per year.