AGILE SUPPLY CHAIN ZARAS CASE STUDY ANALYSIS

The gaps identified and challenges made will serve as a foundation upon which future researchers can build. These facts are well known by Zara and used in its daily operations. Fabrics are considered raw materials and need to be present before the season starts due to long lead times. The outcome will be presented and discussed in the results section. This paper will try to reveal the key aspects of ASC in fast fashion.

Every penny saved in purchasing is a profit, while every sales brings cost of sales. In the fashion world, where companies are competing on time time-to-market the need of new abilities are raising. Zara does not do different, it also has its runners and repeaters. Retailers nowadays prefer working with agile suppliers, so they don’t have to carry stock and increase inventory. The Zara basic label is daily commodities with no shelf life, e. This way Zara can react immediately on demand changes and even if an item is not salable, there are small number of it in a store.

Agility is such an ability essay uf responds rapidly to unpredictable changes in demand.

Generate and forward material releases? This came as a result of close communication between customers and its designers and the ability to ship the desired items in a week catching the sales moment. This affects directly the final product, making it more competitive, possible cheaper and more appealing to the customers.

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Fabrics are considered raw materials zara need to be present before the season rope due to long lead times. For example heavy labour tasks like sewing and coloring are outsourced to companies close to its headquarter, often with bad reputation for mistreating its employees and poor compensations Dutta, Liz Barnes, Gaynor Lea-Greenwood Fabrics are considered raw materials zara need to be present before the season rope due to long lead times.

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After clothes are assembled and return from the sewing factories, they are distributed to Zara’s stores.

agile supply chain zaras case study analysis

Its success is based on the close connection between customers and designers. Sohal, Shams-Ur Rahman There are various ways the business can influence the Xtudy.

Strategic procurement Operational Procurement Goals: Agile companies were also found to be using technology to promote productivity, new product development and customer satisfaction. The procurement of these is either buying or leasing them. Zara is balancing its in-house and outsourcing activities.

Those three directly affect pricing, customer satisfaction, and overall business values like profit, turnover, sales, etc.

Suppliers under increased pressure Consumer needs are changing at a much more frequent pace and this reflects on the whole supply chain by putting pressure on the suppliers.

agile supply chain zaras case study analysis

Procurement Every organization purchases items, meaning, every organization requires to purchase supplies, perhaps as raw materials, components, sub-assemblies, spares, supplly, services and consumables. It could be that: Conclusion Over the last decades Zara introduced agile supply chain ASC in the fast fashion industry and positioned itself third in the world retailers ranking.

Zaraw productivity Low Uncertainty Zara is producing fashion outfits, this has low complex, but high uncertainty. For a week the colorful outfits were replaced with back and dark colored clothes in Zara’s stores.

Agile Supply Chain Zara case study analysis_百度文库

Part aagile the ASC process anapysis agile manufacturing. Consumer-driven process Agile companies can be characterized as more customer focused Power et al, These facts are well known by Zara and used in its daily operations. For example heavy labour tasks like sewing and coloring are outsourced to companies close to its headquarter, often with bad reputation for mistreating its employees and poor compensations Dutta, Another one is after shop closes, the store manager and assistants turn to a recovery team and try to recall what happen during this day, as well as sort out tried, but unsold items in fitting rooms and try to find a pattern, which can be fed to the design team.

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Zara’s case study will be used, as an example, considered to be the pioneer in fast fashion industry nowadays. In fast fashion, purchasing activities play a critical role through supplier selection and product decision-making, and indeed, buying is arguably changing from purely operational to much more strategic Bruce and Daly, By carefully our site, you agree to our collection of information through the use study cookies.

Zara Supply Chain Case Study Part 2

Measuring agile capabilities in On the other hand Tiplady highlight the spuply problem that with the increased number of Zara stores around the world, lead times cannot be kept so short.

Materials change – The global markets and agile supply can provide various materials very briefly on different price.

agile supply chain zaras case study analysis

Zara is balancing its in-house and outsourcing activities. Depending chsin the outcome, there are trowed away or send to store to test if customers will buy them.

Managing relationships with critical suppliers and the rest of company?

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