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Case Study: Zara SCM

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Vadim Ten

on 20 April 2011

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Transcript of Case Study: Zara SCM

SCM and Value Creation With the Use of IT Outline: Company Background
Zara's Key Success Factors
Zara's Supply Chain
Strategic Drawbacks
Conclusion Zara's Key Success Factors Short Lead Time Short Lead Time 1 2 3 Short Lead Time Scarce Supply
Styles Zara's Supply Chain How did Zara gain its Success Factors??? Vertical Supply Chain
Product Development Cycle Creative Departments
200+staff Samples: Prototypes made in-house Mattress:material for garments laid out in layers and marked Cutting: machine cuts the fabric according to patterns Sewing: cut fabric is shipped to workshops Finishing: Garments are pressed, dressed, and checked Shipping: from logistic centers to the stores, road and air Delivery: garments arrive in store within 48 hours of ordering Production Cycle
Final Design: 1 day
Manufacture: 3-8 days
Transport: 1 day
Selling: 17-20 days
Total: 22-30 days Value Creation with the use of IT began with EDI implementation
easy information interchange
faster turnaround
support of designers, production mangers & planners
rich information repository Strategic Drawbacks Lack of E-commerce development Centralized Distribution System First Internet Store-2010
Availability-Europe and US markets Only 2 distribution centers
Coruna Recomendations
Development of e-commerce Development of new distribution center Questions??? Thank You ;) Prepaierd by: Vadim Ten
Irina Khan
Alexandra Kosnikova
Nurzhamal Shayakhmetova
Company Background
Owned by Amancio Ortega
Headquarter: Spain
First Store-1975
1058 stores in 68 countries
Part of Inditex group Sales Conclusion
Full transcript