Scholars As Waller (1998) suggests that “customer-driven” logistics are current dimensions for businesses to be successful, “...as businesses begin to understand that their future existence depends upon the loyalty of the end-users of their products”.Conventional marketing trends are never followed by Zara. Inditex management has mentioned this in its mission statement and following this objective will create a competitive advantage. The adoption of the study is purely valid in terms of instrumentation, as it intends to observe sourcing strategy The study is also checked for the external validity by generalizing the findings to a larger group of companies that are not involved in the study and to the other sectors of Industry other than apparel, to observe the general implications of global sourcing. In this respect, Zara also supports this concept, as presented in the flow diagram below:Regarding the diagram, the process of supply starts with cross-functional teams cooperating with the company’s design department located in La Coruna. However, some of its strategies have shortcomings.
Later, the popularity of brand was spread to other cities and neighboring countries. I am sure other retailers too would have taken lessons from Zara's strategy.Copyright © 2020 HubPages Inc. and respective owners. As the generic strategies have three parts i.e. Zara has followed an optimal combination of all these. Second, using intranet networks enables constant flow of information and allows ZARA to eliminate the threat of overproduction.Importantly, the integration between business activities contributes to developing information distribution leading to a tangible increase in performance and productivity. However, in order to decrease the risks outlined above, Zara might consider new technologies to anticipate parabolic demand. First, it enables Zara to adapt to consumer demands quickly, aligning itself with demand in a meaningful way. Hence, the centers can be coordinated by means of EDI mechanisms integrated by ERP systems that provide greater control and increase the production volumes all over the world. It should be stressed that a twice-weekly model of delivery is directly associated with the transportation costs and, therefore, the circumstance can become the key to ZARA’s failure to control costs (Gallagher 7).Because the time is one of the core advantages of the company, it should take possible challenges into deeper consideration. In Chart 4, you see total revenue in billions of dollars between 2003 and 2007 for 4 major clothing retailers. In this way, Zara really distinguishes itself by reversing the usually flow from design, manufacturing, transport, and then to the customer; putting the customer first instead.
The adoption of case study evaluation is highly suitable to find out to identify the implications of supply chain implications in global sourcing strategy of Zara. (2018, Jan 22). This report on ZARA: Analysis of Logistics Systems was written and submitted by your fellow student. Zara uses proprietary software to analyze fashion trends from each of its many hundreds of stores around the world. A system this flexible and responsive has to be highly efficient – and it is no coincidence that our ceaseless search for greater efficiency ties in perfectly with our all-encompassing commitment to sustainability.. Our 10 logistics centres are in Spain, close to the head offices of our eight brands. This strategy encompasses many stages. n. p.). For the expansion of business in more countries, the political support provided should be evaluated critically.
Current weaknesses may be a lack of communication of products i.e. The working environment, industry surroundings, competitive pressures, and other effective factors will be discussed now. Many of the competitors of Zara have brought new technological concepts in the market in the sales point atmosphere and manufacturing processes.
Let Professional Writer Help You 6000 Fairview Road, SouthPark Towers, Suite 1200, Charlotte, NC 28210, USAPhDessay is an educational resource where over 1,000,000 free essays are collected. Many report the quality of Zara products to be quite good compared to others that offer similar, but much more expensive products – like Armani, Gucci, or Prada. Thus a strong corporate image should be emphasized and marketing is an option to get the desired results, as Zara is going to be much more expanded in the coming years.Opportunities identified and discussed above are not easily achievable. At this point, the information and communication networks that the company uses produce cost advantages to operations and allow to follow the fundamental principle of reacting quickly to the shifts in demand.In addition, success and flexibility allows the company’s managers to define quickly the deadlines of production due to short lead-time, variety of fashion trends, and limited supplies (Ferdows et al. "The New York Times. The idea is that low-inventories create a sense of urgency among customers. In order to meet the challenges of remote data processing, the company can introduce technological systems combining the analysis of both external and internal data.The introduction of another distribution center can eliminate possible risks that a vertical integration system of supply presents.