zara DESIGN AND MANAGEMENT SUPPLY CHAIN

40% of fabric supply from other Inditex owned subsudiaries

Technology Support

Supply Chain Strategy

What is ZARA??

Responsive Product !

Product Characteristic

Supply Chain Product Design

• Facilities Location

• Production System

• Inventory

• Transportation

• Supply

• Product Development

• Locate near the market, easily access experts and technology

• Flexible and has extra capacity

• Adequate safety stock in the right place

• Fast, LTL/LCL

• Responsiveness, flexibility, and quality focus

• Modular design, postponement

SCM Consideration

Time to Market

Flexibility

Modularity

Responsive

Point of sale system (POS)

Personal digital assistant (PDA device)

Product Design Team

ZARA.com

RFID

Supplier involve when the

production designer review and

create fabric prototype request

Strategic Fit

Sample Maker

CAD Operators

Localization

Reusability

Pattern Makers

1999 Stores Around the world

Supplier Involvement

Simplicity

Efficient

Functional

Innovative

Supply Chain Network

Supply Chain Demand

ZARA Supply Chain

ZARA Vision and Mission

ZARA Mission

ZARA Vision

ZARA Vision is to give the customer an exclusive choice of fashion by providing a quicker turnover of new stock than other fashion retailers.

Through Zara’s business model, we aim to contribute to the sustainable development of society and that of the environment with which we interacts. 

Demand Management

Network Design Model

Order administration in headquarters -> Designers, Market specialist, Buyer

DESIGN by ZARA

PRODUCTION

Supply Network Design Principle

Shelf Management

Demand Profile

Pricing

Discount

Price Variation

Promotion

50% La Coruna, Spain

50% Outsourcing Suppliers

50% BY 400 Outside suppliers

-> 70% of the suppliers are in EUROPE (many in SPAIN and PORTUGAL)

-> Most of the rest in ASIA

In house CAD controlled piece cutting

Deal Structure

50% by ZARA

-> Manufacturing in 22 factories in SPAIN

Zara uses 0,3 % of its revenue sales in advertising.

The tactic used in Zara is strictly hoping to achieve word of mouth throughout consumers

Online promotion

CUSTOMERS

Payment Method

Warranty for Online Shopping

Subcontract Transportation

Dyestuff producer Fibracolor to facilitate quick changes in printing and dyeing

Gravity Location Model

Subcontractors for all sewing operations

Distribution centre in La Coruna, SPAIN

Retailers Around the World

RETAILING

Forecasting Strategy

stores place their order and receive shipments twice per week

Supply Network Design Options

Historical Reference

Retail Storage with Customer Pickup

Zara Factories

Selling Season

Retailers

Customers

Information Flow

Product Flow

zara DESIGN AND SUPPLY CHAIN MANAGEMENT

by. Elisabeth l.r