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Global Supply Chain Management of ZARA

   

Added on  2020-06-06

9 Pages2691 Words362 Views
Global Supply ChainManagement

Table of ContentsINTRODUCTION...........................................................................................................................1Competitive factors in fashion and apparel industry...................................................................1Impact and constituent parts of a supply chain in global environment.......................................2Ways in which business environment affects business structure of GSCM...............................3Supply chain management strategies for ZARA.........................................................................5Developing performance management system for ZARA..........................................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7

INTRODUCTIONIn the modern world where businesses have become globalised and large organisationshave reached to each corner all around the world, it has become essential that companiesstrengthen their global chain management (Brandenburg and et. al., 2014). Zara is one of thebiggest brands that deals in the business of retailing clothes and other fashion accessories. Sinceit is not possible that a company can open its manufacturing unit in every country empoweringsupply chain becomes more important. This report highlights the competitive factors in thefashion and apparel industry. It also describes about the impact and constituent parts of supplychain in global environment. Also, the report showcases strategies related to supply chainmanagement for ZARA.Competitive factors in fashion and apparel industryThere are several factors that are shaping the apparel and fashion industry. All thesefactors are influencing the business of ZARA and its supply chain management. Some of themajor factors in this regard are as follows:Costs and Prices: This is one of the most important factors that is shaping competition.Every big rivalry firm is producing products that is almost similar to that of ZARA but itis the cost or price that is making a product more attractive. Many fashion brandscompete in layered price tags to appeal to different customer price points. Zara offers apremium pricing tags for most of its products. They also justify their price rangeaccording to the market they are operating in as well as the cost of manufacturing.Technology: This is another important factor that is describing the supply chain. In thisindustry there have been lot of innovation in the use of technology. Zara takes use of allthese advancements (Christopher, 2016). More advanced technology used greater will bethe chances of making quality products which gives competitive advantage in the market.Supply chain: Since any company cannot produce products in local markets hence, theyneed to create a proper chain so that products will be available in every market. Lowerthe cost of maintaining supply chain higher is the chances of making bigger profits.Strong supply chain always helps in entering in the new market.1

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