1. Supply Chain Management Definition
2. Principles Of Supply Chain Management Pdf
3. Supply Chain Management Book Pdf

Zara’s Rapid Rise as a Cool Supply Chain IconThis case was written based on various published stories about Zara and inspiration from the toolbox of the Council of Logistics Management. New Heights in the Fashion IndustryFounded in 1975, Zara is the world’s largest clothing retail chain and is based in Galicia, Spain. Its parent company, the Inditex group, reached annual sales of 16.7 billion Euros in 2013, twice as much as its annual sales of 8.2 billion Euros in 2006.According to Investing.com, Zara’s inventory turnover ratio is 29.58, as compared to an industry norm of 5.29 in 2013. Its gross profit margin (26.57%) is substantially higher than its major competitors. Thanks to its recent achievement, Zara is on the list of the Forbes world most valuable brands in 2013.

Supply Chain Management Definition

Zara’s remarkable success is attributed to the “fast fashion” philosophy in which the latest, trendy but inexpensive fashions are quickly distributed into its retail stores based on constant dialogues with the customers. Zara focuses on “putting the customer in control” in that it monitors customer reactions carefully by noting what they buy and do not buy. This differs from the traditional method of forecasting fashion trends and then promoting the clothing line through fashion shows, news media, and magazines.Zara constantly records customer feedback given to the staff, and that feedback is relayed to its headquarters daily. Based on such feedback, its team of in-house designers quickly introduces new designs and then its factories manufacture clothes based on those designs (Levin, 2013). Zara’s key customer bases are college-age kids and young females under the age of 30 who look for inexpensive but stylish fashions.

Principles Of Supply Chain Management Pdf

Zara also sells men’s clothing lines, aiming at the stylish and youthful. In Europe, Zara has attracted a cult following from many young people. Young adults have rarely shopped at Zara, but that seems likely to change in the near future.

Supply Chain Management Book Pdf

In 2008, Zara overtook Gap as the biggest apparel retailer in the world. Zara opened an additional 360 stores in just 2012 alone. Zara has grown from 179 stores, mostly in Spain, to more than 6,100 stores with 116,110 employees in 86 countries, including the U.S., Canada, and Russia (Reuters, 2013). With its eyes on U.S.

Free download font thai psp 3000. Customers, Zara can offer these customers an option previously unavailable to them, thus competing head-to-head against established U.S. Brand apparel stores such as Gap, Abercrombie & Fitch, and J. It has a unique, youth-oriented, no-advertisement marketing strategy in which logistics plays an important role. Zara’s supply chain process defies conventional wisdom, as illustrated in Exhibit 1.1.