Presentation on ZARA Supply Chain

Description
Supply chain management (SCM) is the management of an interconnected or interlinked between network, channel and node businesses involved in the provision of product and service packages required by the end customers in a supply chain

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ZARA’S SUPPLY CHAIN

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ZARA’S SUPPLY CHAIN MANAGEMENT PRACTICES

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ORIGIN OF ZARA
FOUNDED BY : AMANICO ORTEGA GAONA BORN IN : LEON, SPAIN IN 1936 A SALE FORMAT OF INDITEX GROUP - ONE OF THE WORLD’S LARGEST FASHION DISTRIBUTOR.

AMANICO ORTEGA CHAIRMAN CEO

PABLO ISLA FIRST DEPUTY CHAIRMAN &

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INTRODUCTION
• Ortega Worked As An Assistant In Apparel Shop And Set Up Its Own Fashion Retail Business. • 1963: Started Manufacturing Housecoats With Name As Confecciones Goa . • 1975: Estd A Small Outlet In His Factory And Called Outlet As Zara. • 1979: Estd A Company With Name As Industria De Diseno Textil ,Sa, Whose Flagship Brand Was Zara

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SUPPLY CHAIN MANAGMENT
• Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers . • Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. 

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SALIANT FEATURE
• • • • • • Customize Retailing Vertical Integration of Production System Exclusive Production Involvement of Manager, Staff and Owner Reduce time due to Team Work Policy for Franchisees.

INFORMATION FLOW FROM CUSTOMER TO COMPANY

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DESIGNING
• • • • • • Adapting new design Shelf life of design High Fashion concept Always Introduce fresh design Designer travel world wide Computer Aided Design

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Production
• • Demand based production Flexibility

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DISTRIBUTION
• • • • • Central site for distribution High accuracy in Shipment Efficient Supply Chain Own Railway Infrastructure Straight away display of product

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STORE OUTLAY
• • • • Uniform store outlay Store Outlay at Prime location Store window designer Display of clothes

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ADVANTAGE
• • • • • • • • • • React quickly to market demand Fast Supply worldwide Anticipation of product Product quality and design Highly Flexible Production System Automated Distribution System Low Risk for limited product Supply chain for maximize revenue Pull Strategy Maintain Low Inventory

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DISADVANTAGE
• Higher Cost -Distribution -Labor High competition Lack of economies of scale

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