MGT704 - Logistics Management Assignment
Added on 2019-10-30
16 Pages2624 Words249 Views
Logistics and Supply Management- Zara-A Case Study1 | P a g e
Executive SummaryThis article will highlight the success of Zara in respect of its operation management with specialemphasis on its logistic and supply chain management. This company is originated in Spain andspread over globally with its state-of-the-art presentation of fashion garments for men andwomen. In this article the main emphasis will be given on tracking the reason for its success withthe issues it faces for its business. Logistic and supply chain management is considered as one ofthe main components for success of any present business and Zara is not any exception to thisconcept. To enjoy competitive edge of the market is the basic criterion for any business and Zarapractices its own module to find the competitive advantage which is basic for provingsustainability in long term.2 | P a g e
Table of ContentsIntroduction.................................................................................................................................................4Vision and Mission Statement – Zara..........................................................................................................4Vision statement.....................................................................................................................................5Mission statement...................................................................................................................................5SWOT Analysis- Zara.................................................................................................................................5Internal Factors- Zara:.............................................................................................................................5Strengths..............................................................................................................................................6Weaknesses.........................................................................................................................................6External factors- Zara..............................................................................................................................6Opportunities.......................................................................................................................................6Threats.................................................................................................................................................7Competitive Profile – Zara..........................................................................................................................7Logistics and Supply Chain Management- Zara..........................................................................................8Coordination between operations and business strategy- Zara..............................................................8Just in Time Production...........................................................................................................................8Inventory management- Zara..................................................................................................................9Centralized Logistics................................................................................................................................9Distribution network.............................................................................................................................10Fast Fashion- success story of Zara........................................................................................................10Conclusion.................................................................................................................................................10Recommendation.......................................................................................................................................10Appendices:...............................................................................................................................................13Appendix 1.............................................................................................................................................13Appendix 2.............................................................................................................................................13Appendix 3.............................................................................................................................................14References:................................................................................................................................................153 | P a g e
IntroductionZara has started its journey in 1963 through its entrepreneur Ortega with the set up of a factoryfor dress manufacturing named Inditex. Gradually the company has started its journey through asmall store at La Coruna, Spain with the name as Zorba. The name had been changed as Zara bythe entrepreneur and the name is getting worldwide popular through their journey acrossglobally. This brand is known as one of the most popular fashion brand and had expanded theiroperation from Spain to other parts of Europe. Since 1990, they have launched their expansionplan to US and most parts of Europe. The company has existence over 88 global countries with6500 stores to prove its global presence including Asia and other continents.This present research will highlight on different reasons of the success of Zara, which areresponsible to provide them the competitive advantages in the segment of global fashionindustry. It is always indentified as the basic reason for success of business to have competitiveadvantage in the market and for this purpose, certain unique business strategies are to be adoptedby the entrepreneur, which are not easy to imitate. Out of them, supply chain management withlogistics management plays a vital role in order to reach the target audience within the shortestpossible time. Other factor in this business segment is to provide unique designs for the targetaudience. This article will provide logical discussion about these factors and comparisonbetween the competitors and Zara to find the proper reason for enjoying the best possiblecompetitive edge in the global fashion market. Vision and Mission Statement – Zara To understand the reason for success of any business, first we have to understand the corporateobjective of that entity. This can only be found and understood through vision and mission ofany organization. Zara also has vision and mission statement which clearly depict their objectiveof where they want to see them in long term with sustainability.4 | P a g e
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