Zara

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efficient supply chain and sustain competitive advantage in the market.
Zara’s supply chain cycle time could be 5 to 12 times faster than other companies in the industry. In fashion industry, products in the store may be renewed every month, so it is important to have a quick response in supply chain to react the orders.
Critical Success Factors identified

Spanish clothing retailer Zara has hit on a formula for supply chain success that works by defying conventional wisdom. (Kasra F) Zara becomes a flagship brand nowadays and growing rapidly in past 10 years. Zara achieved its business strategy by successfully organizing and coordinating each segment through whole supply chain, creates high-efficiency logistics system then sustain competitive advantage. The following factors may be seen as the critical success factors for Zara:

• Produce the products which customers expect to see. Gap failed in market is because failed in new products design. Zara uses pull strategy, ...

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in a supply chain

Supply chain decision phases may be categorized as design, planning or operational, depending on the time frame during which the decision made apply. These three decision phrases should be made to increase the supply chain surplus.

1. Supply chain strategy or design: In this phrase, company decides how to structure the supply chain, allocate resources, ensure the supply chain configuration supports its strategic objectives and increases the supply chain surplus.

Zara’s business strategy is the ability to respond very quickly to the demands of target customers which called for identifying trends of the customer in advance. Zara applied vertically integrated ...

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