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  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
  • File format: Text
  • Number of pages: 2

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The concept of supply and supply chain management series

Is a set of methodologies used to integrate suppliers, manufacturers, warehouses, shops, effectively, so being the production and distribution of goods the right quantities, at the correct locations, at the right time, so that the cost of the system to be as low as possible with the province to achieve the service level requirements of the college.

Zara: The technique international fashion giant

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Zara is a company that sets the so-called fashion industry fast fashion Major chain specialty apparel conglomerate in Spain, Inditex, Zara has built information and distribution system that allows it to the runway in the latest fashions stores put in a matter of weeks at a fraction of the charge of the big-name designers.

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In addition to fasting, Zara is prolific. In a typical year, Zara launches around 11,000 new items. Compare that to the 2,000 to 4,000 items introduced by both H & M and Gap. Zara receive new goods stores twice to three times a week, compared with 4.6 times a year for most retail outfitters. More payments and smaller items are translated to the uniqueness of fashion. This in turn leads to fewer downs and higher profits mark.

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Zara controls the vertical marketing system properly. And it concentrated a large part of the participants about the channel geographically headquartered in a remote area in northeastern Spain, rather than spread all over the world. This system of Information Technology have that allow them to achieve the speed and responsiveness to do.

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Design: The starting point is the stage of the cooperative, which includes teams of creative professionals who carry out the design and shop managers who monitor trends and data feed companies process.

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Material: Zara makes 40% of its own fabric. It is not clear from the case where the other 60 percent come from, but because of the information on the remainder of this process, it is likely purchased more on a local basis than on a global basis.

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Cut: Zara produces more than half of his own clothes. This goes all the fabric in the house at its complex in Spain.

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It is sent cloths and designs for one of the many hundreds of local cooperatives: sewing.

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Ironing is done in-house by trained workers for specific task (the lapels and shoulders, etc.): ironing.

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Clothes are wrapped in plastic and transported on tankers to local warehouses owned Zara: final preparation. Automated warehouse type, package, label, and specialty clothing for specific regions and stores.

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Delivery: the stores on the 24-hour distance receive shipments by truck. All other stores on their goods by air expelled.

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There is little information received in the case about the channel conflict. But one can easily speculate to achieve the desired results. Because Zara has plenty of its own supply chain and shows the extreme amount of control over the elements that are not owned, and the conflict is probably minimal. With respect to horizontal conflicts, the only members of the supply chain at the horizontal level have hundreds of local sewing cooperatives. It is hard to imagine the kind of complaints that such cooperatives have launched against each other would affect Zara. However, the horizontal issues may result in the vertical conflict. Zara has a lot of the supply chain. Thus, any dispute will be internal, and can be handled completely different way than if they were independent entities. But the cooperatives are not owned by the company. Because there are a lot of them, however, it should be minimized conflict as it did Zara a lot of options.

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While Zara does not have all phases of vertical marketing system, and it seems to have a strong control over those that do not. Zara system applies this description best fits the contractual or management systems. The text provides an example of an airy Zara in the section on corporate illustrates the benefits they bring Zara through this structure. This control includes almost every aspect of the supply chain, and more of the materials produced, the faster design times to the shelf, low inventory, and more frequent shipments. In short, Zara faster and more flexible, and more efficient than other fashion houses.

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One drawback to bear Zara is probably on the high cost of materials and labor by not identifying sources globally for the cheapest source. This, however, offset by cost savings from the lack of materials that are shipped all over the world. Also offset by a significantly faster response time between each stage. Because competitive advantage Zara is part of "fast" fashion, this is much more important than the minimum that can be saved by Zara worldwide sources.

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Storage: Storage only be done in the local system and brief constituent parts and ready-made elements. This adds value by reducing the associated storage costs and reduce the time to get to the rack.

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Inventory Management: overall system both contributes to Zara's ability to provide a fair system in a timely manner. This leads to lower inventory, reduce costs, and faster speed.

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Transportation: shipping system Zara is definitely fast. This is a great advantage. Shipping by air freight to the individual stores are not the cheapest way to go. But again, Zara advantage is speed.

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