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Zara Updated

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simonjohn spangler
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22 views14 pages

Zara Updated

Uploaded by

simonjohn spangler
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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BACKGROUND

INFORMATION
WHAT ADVANTAGES DOES ZARA GAIN
AGAINST THE COMPETITION BY HAVING
A VERY RESPONSIVE SUPPLY CHAIN?
Difference Between ZARA and other retailers

Other Retailers Vs ZARA

• Compete in existing market space. • Short Production Runs.


• Adopt different strategies based on their • Minimizes forecast errors.
target markets. • Create and capture new demand.
• Exploit existing demand. • Safeguarding robust profit margins.
• Align the whole system of a firm’s • Can offer its clientele a broader array of
activities with its strategic choice of fresh, highly sought-after products.
differentiation or low cost.
WHY HAS INDITEX MAINTAINED MANUFACTURING CAPACITY IN EUROPE
EVEN THOUGH MANUFACTURING IN ASIA IS MUCH CHEAPER?
(Hollensen, 2018)

INDITEX

RISK SCALABILITY
MANAGEMENT SUSTAINABILITY

DUAL FLEXIBILITY AND COST


MANUFACTURING EFFICIENCY OPTIMIZATION
STRATEGY
WHY DOES ZARA SOURCE PRODUCTS WITH
UNCERTAIN DEMAND FROM LOCAL
MANUFACTURERS AND PRODUCTS WITH
PREDICTABLE DEMAND AND FROM ASIA
MANUFACTURERS?
(Ferdows, Lewis, & Machuca, 2004)

ASIA LOCAL

MANUFACTURING IN BULK SWIFTLY PRODUCE SMALLER


IS MORE COST-EFFECTIVE QUANTITIES IN RESPONSE TO
FOR THESE ITEMS, GIVEN MARKET SHIFTS, REDUCING THE
THEIR LONGER SHELF LIFE RISK OF OVERSTOCKING ON
LESS POPULAR ITEMS
WHAT ADVANTAGE DOES ZARA GAIN FROM
REPLENISHING ITS STORE MULTIPLE TIMES A
WEEK COMPARED TO LESS FREQUENT
SCHEDULE? HOW DOES THE FREQUENCY OF
REPLENISHMENT AFFECT THE DESIGN OF THE
DISTRIBUTOR SYSTEM?
ENABLING BETTER RESPOND TO REAL-TIME
CONTINUOUS FLOW OF NEW
ALIGNMENT OF SUPPLY AND SALES DATA AND CUSTOMER
MERCHANDISE
DEMAND FEEDBACK

(Hollensen, 2018) (Christopher, 2016)


DO YOU THINK ZARA’S RESPONSIVE
REPLENISHMENT INFRASTRUCTURE IS
BETTER SUITED FOR ONLINE SALES OR
RETAIL SALES?
(Ferdows et al., 2004).

ONLINE SALES RETAIL SALES


Online Catalog 01 Real-Time Data Analysis

Online Orders 02 Excitement

Latest Trend 03 Impulsive Buying

Opportunities for growth 04 Sense of Urgency and Excitement

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