Description
it includes zara supply chain and logistics
S
A M IN A H C LY P UP
G A N
F O NT E EM
By:
ED %&a M $ h H !"# IQ A SAD _shari
iq Sad
S FF I R SHA i'()$&
? H I S T O RY:
In 1963, Amancio Ortega started a small company in Spain that manufactured women’s pa amas and lingerie products for garment wholesalers! In 19"#, after a $erman customer cancelled a si%a&le order, the firm opened its forts 'ara retail shop! (he original intent was simply to ha)e an outlet for cancelled orders &ut the e*perience taught the firm the importance of a marriage &etween manufacturing and retailing a lesson that guided the e)olution of the company e)er since!
: A R A * T ? ABOU
Since then 'ara chains ha)e grown into retailing giants with almost 1"#1 stores worldwide and an impressi)e sales record, it has presence in 1++ countries around the glo&e! (he success of 'ara is partly to do with the appeal of its men and women and children’s fashions and accessories that display uni,ue style &ut at real world prices! -ut it is also partly as a result of their colla&orati)e, digital networ.s that lin. 'ara with its suppliers and customers!
: A R A * T ? ABOU
It is claimed that 'ara needs ust two wee.s to de)elop a new product and get it to stores, and launches around 1+,+++ new designs each year! 'ara has resisted the industry/wide trend towards transferring fast fashion production to low/cost countries! 0erhaps its most unusual strategy was its policy of %ero ad)ertising1 the company preferred to in)est a percentage of re)enues in opening new stores instead! (his has increased the idea of 'ara as a 2fashion imitator2 company and low cost products! 3ac. of ad)ertisement is also in contrast to direct competitors such as 4ni,lo and 4nited 5olours of -enetton!
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'ara is a )ertically integrated retailer! 4nli.e similar apparel retailers, 'ara controls most of the steps on the supply/chain, designing, manufacturing, and distri&uting its products! 'ara set up its own factory in 3a 5oru@a in 19A+, and upgraded to re)erse mil./run/type production and distri&ution facilities in 199+! (his approach, designed &y (oyota 9otor 5orp!, was called the ust/in/time BCI(D system! It ena&led the company to esta&lish a &usiness model that allows self/ containment throughout the stages of materials, manufacture, product completion and distri&ution to stores worldwide within ust a few days!
? S4003? 5=AI; 5O90O;:;(S8
Eor 'ara stores to &e a&le to offer cutting edge fashion at afforda&le prices re,uires the firm to e*ert a strong influence o)er almost the entire garment supply chain8 ? 7esign, ? 0roduction, ? 7istri&ution and ? 6etailing!
!+ D,si-. a.d Ord,r Ad&i.is%ra%i$.:
(he design and order administration at 'ara is )ery effecti)e and efficient! (he company ensure product ,uality &y designing its own products! 'ara has almost 3++ people wor.ing in its head,uarters in Spain! (hese talented• people include designers and specialists! (ogether they produce designs for appro*imately F+,+++ items per year from which 1+,+++ are selected for production! ? ? 7esigners 9ar.et Specialists
/+ Pr$d0)%i$.:
#+G of the products 'ara sells are manufactured in Spain, H6G in the rest of :urope, and HFG in Asian and African countries and the rest of the world! , 'ara ma.es its most fashiona&le items half of all its merchandise at a do%en company owned factories in Spain and 0ortugal, particularly in $alicia and northern 0ortugal where la&our is somewhat cheaper than in most of >estern :urope! ? ? S011'i,rs
3+ Dis%ri20%i$.:
Dis%ri20%i$. C,.%r, I all products pass through 'ara’s ma or distri&ution center in 3a 5oru@a! (he #/storey, #+,+++ s,uare meter distri&ution center employs some of the most sophisticated and up/to/date automated systems! L$-is%i)s 4C$.%ra)%$rs+ I In H+1H, the distri&ution center shipped 13+ million pieces! "# percent of these shipments were to stores in :urope! Eashion garments represent around A+ percent of 'ara’s products and the rest are more &asic items!
5+ R,%ai'i.-6:
S%$r,7C0s%$&,r Stores usually place their orders and recei)e shipments twice per wee.! Orders ha)e to &e placed at pre/designated times! (he o)erall e*perience of the customer in the store in considered! Apart form the fashion supply, the interior design of the store, coordination of collections, ma*imum care o)er window displays and customer care are• some of the elements that guarantee this e*perience!
?E ,)%i8,.,ss $ S)h,d0'i.T,)h.iq0,s:
Scheduling refers to the time or date on which acti)ities are to &e underta.en! Such fi*ing determines the manner in which resources will flow in an operating system, the effecti)eness of which has an important impact on production and thus supply chain performance! (he scheduling techni,ues of 'ara is )ery efficient! C,.%ra''y Ma.a-,d I.8,.%$ry I controlled and timely deli)ery of clothing to all stores across the world! R,d0),d D,si-. Cy)', Ti&, I timely response to items that sell well and a&ility to ,uic.ly alter or enter new designs! S%r$.- IT Sys%,& I allows almost immediate communication of sales and in)entory information across enterprise! L$-is%i)s a.d Dis%ri20%i$. I clothes mo)e within hours to their destination, efficient scheduling of shipments!
•
?C$.)'0si$.:
6'ara is an e*ample of how a firm can design and manage its supply chain to gain competiti)e ad)antage! (he retailing success of 'ara can &e partly attri&uted to its e*cellent supply chain management! 'ara ma.es sure that each element of the supply chain networ. adds )alue to the entire operation! 'ara ma.es sure that it streamline its supply chain, remo)ing steps that does not contri&ute to the achie)ement of the company’s goals and de)eloping those elements that add )alue!
THAN9 YOU
(;
doc_348620834.pptx
it includes zara supply chain and logistics
S
A M IN A H C LY P UP
G A N
F O NT E EM
By:
ED %&a M $ h H !"# IQ A SAD _shari
iq Sad
S FF I R SHA i'()$&
? H I S T O RY:
In 1963, Amancio Ortega started a small company in Spain that manufactured women’s pa amas and lingerie products for garment wholesalers! In 19"#, after a $erman customer cancelled a si%a&le order, the firm opened its forts 'ara retail shop! (he original intent was simply to ha)e an outlet for cancelled orders &ut the e*perience taught the firm the importance of a marriage &etween manufacturing and retailing a lesson that guided the e)olution of the company e)er since!
: A R A * T ? ABOU
Since then 'ara chains ha)e grown into retailing giants with almost 1"#1 stores worldwide and an impressi)e sales record, it has presence in 1++ countries around the glo&e! (he success of 'ara is partly to do with the appeal of its men and women and children’s fashions and accessories that display uni,ue style &ut at real world prices! -ut it is also partly as a result of their colla&orati)e, digital networ.s that lin. 'ara with its suppliers and customers!
: A R A * T ? ABOU
It is claimed that 'ara needs ust two wee.s to de)elop a new product and get it to stores, and launches around 1+,+++ new designs each year! 'ara has resisted the industry/wide trend towards transferring fast fashion production to low/cost countries! 0erhaps its most unusual strategy was its policy of %ero ad)ertising1 the company preferred to in)est a percentage of re)enues in opening new stores instead! (his has increased the idea of 'ara as a 2fashion imitator2 company and low cost products! 3ac. of ad)ertisement is also in contrast to direct competitors such as 4ni,lo and 4nited 5olours of -enetton!
06O745(S8
9:;<S 53O(=I;$
>O9:;<S 53O(=I;$
5=I376:;<S 53O(=I;$
? 'A6A S4003? 5=AI; 9A;A$:9:;(8
'ara is a )ertically integrated retailer! 4nli.e similar apparel retailers, 'ara controls most of the steps on the supply/chain, designing, manufacturing, and distri&uting its products! 'ara set up its own factory in 3a 5oru@a in 19A+, and upgraded to re)erse mil./run/type production and distri&ution facilities in 199+! (his approach, designed &y (oyota 9otor 5orp!, was called the ust/in/time BCI(D system! It ena&led the company to esta&lish a &usiness model that allows self/ containment throughout the stages of materials, manufacture, product completion and distri&ution to stores worldwide within ust a few days!
? S4003? 5=AI; 5O90O;:;(S8
Eor 'ara stores to &e a&le to offer cutting edge fashion at afforda&le prices re,uires the firm to e*ert a strong influence o)er almost the entire garment supply chain8 ? 7esign, ? 0roduction, ? 7istri&ution and ? 6etailing!
!+ D,si-. a.d Ord,r Ad&i.is%ra%i$.:
(he design and order administration at 'ara is )ery effecti)e and efficient! (he company ensure product ,uality &y designing its own products! 'ara has almost 3++ people wor.ing in its head,uarters in Spain! (hese talented• people include designers and specialists! (ogether they produce designs for appro*imately F+,+++ items per year from which 1+,+++ are selected for production! ? ? 7esigners 9ar.et Specialists
/+ Pr$d0)%i$.:
#+G of the products 'ara sells are manufactured in Spain, H6G in the rest of :urope, and HFG in Asian and African countries and the rest of the world! , 'ara ma.es its most fashiona&le items half of all its merchandise at a do%en company owned factories in Spain and 0ortugal, particularly in $alicia and northern 0ortugal where la&our is somewhat cheaper than in most of >estern :urope! ? ? S011'i,rs
3+ Dis%ri20%i$.:
Dis%ri20%i$. C,.%r, I all products pass through 'ara’s ma or distri&ution center in 3a 5oru@a! (he #/storey, #+,+++ s,uare meter distri&ution center employs some of the most sophisticated and up/to/date automated systems! L$-is%i)s 4C$.%ra)%$rs+ I In H+1H, the distri&ution center shipped 13+ million pieces! "# percent of these shipments were to stores in :urope! Eashion garments represent around A+ percent of 'ara’s products and the rest are more &asic items!
5+ R,%ai'i.-6:
S%$r,7C0s%$&,r Stores usually place their orders and recei)e shipments twice per wee.! Orders ha)e to &e placed at pre/designated times! (he o)erall e*perience of the customer in the store in considered! Apart form the fashion supply, the interior design of the store, coordination of collections, ma*imum care o)er window displays and customer care are• some of the elements that guarantee this e*perience!
?E ,)%i8,.,ss $ S)h,d0'i.T,)h.iq0,s:
Scheduling refers to the time or date on which acti)ities are to &e underta.en! Such fi*ing determines the manner in which resources will flow in an operating system, the effecti)eness of which has an important impact on production and thus supply chain performance! (he scheduling techni,ues of 'ara is )ery efficient! C,.%ra''y Ma.a-,d I.8,.%$ry I controlled and timely deli)ery of clothing to all stores across the world! R,d0),d D,si-. Cy)', Ti&, I timely response to items that sell well and a&ility to ,uic.ly alter or enter new designs! S%r$.- IT Sys%,& I allows almost immediate communication of sales and in)entory information across enterprise! L$-is%i)s a.d Dis%ri20%i$. I clothes mo)e within hours to their destination, efficient scheduling of shipments!
•
?C$.)'0si$.:
6'ara is an e*ample of how a firm can design and manage its supply chain to gain competiti)e ad)antage! (he retailing success of 'ara can &e partly attri&uted to its e*cellent supply chain management! 'ara ma.es sure that each element of the supply chain networ. adds )alue to the entire operation! 'ara ma.es sure that it streamline its supply chain, remo)ing steps that does not contri&ute to the achie)ement of the company’s goals and de)eloping those elements that add )alue!
THAN9 YOU
(;doc_348620834.pptx