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  • Essay / Fashion Retailer Supply Chain Model: Zara - 1438

    Through the use of literary articles and other academic materials, this article will review strategic supply chain initiatives that provide gives Zara an advantage over its competitors. The report will examine the supply chain model of other fashion retailers to show how Zara has mastered the supply chain model to gain an advantage over others. The report will also examine the following areas: i. Origins and history of the organization. ii. Zara.a Supply Chain Model Review. Design of new products.b. Manufacturing.c. Distribution and logistics.d. Store size and layout. iii. Look at other supply chains in the fashion industry. iv. Compare and contrast findings from Zara and other retailers. The overall objective of the report is to show how Zara, while operating in a highly competitive market, has produced a unique supply chain model. This uniqueness has led to Zara's global success and helped make the organization a global success. Origins and History of the Organization Zara is a sister company of the Inditex group which is owned by the Spanish tycoon Amancio Ortega. Inditex is one of the largest fashion retailers in the world and its foundation dates back to 1963. Zara opened its first store in 1975 near Inditex headquarters in La Coruña, Spain. The store featured similar low-priced products to popular, high-end clothing. In 1979, the Zara brand had 6 stores. These stores were successful and in 1988 the company opened its first store outside of Spain. However, by 1990, Zara had stores around the world, including Porto, Portugal, New York and Paris. According to Inditex's 2012 annual report, Zara opened a total of 120 stores in 2012, reaching 1,925 stores in 86 markets around the world. Zara sales are in the middle of paper......logistics department. They are shipped by time zone to allow Zara to better meet customer demand. Zara uses the services of third-party logistics providers to manage all of its freight and deliveries. It takes two days to ship the goods by truck to their European retail stores. Non-European shipments are sent by air. When deliveries arrive in store, the downstream merchandise process is simplified. The store will receive all orders assembled ready to hang, all store assistance needs to do is hang the rail, remove the plastic protective cover and the items are ready to sell. Store Size and Layout Stores receive product delivery twice a week. These deliveries are based on information received from its stores around the world. This ensures that Zara always offers what the customer wants. These could be exciting designs or redesigned items to meet consumer demand..