Logistics Management Strategy for Successful Business

Running head: LOGISTICS MANAGEMENT STRATEGY FOR SUCCESSFUL
BUSINESS
Logistics Management Strategy for Successful Business
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1LOGISTICS MANAGEMENT STRATEGY FOR SUCCESSFUL BUSINESS
Executive summery
This assignment is about analysing the logistic management and supply chain
strategies behind successful business process of fashion retailer Zara. This report has
identified issues within the organisation and analysed strategies behind its successful
operation by comparing it with a successful and an unsuccessful example from fashion
industry. Besides, the concept of sustainability has been introduced with example of Zara’s
policy of achieving competitive advantage in such a competitive business environment.

2LOGISTICS MANAGEMENT STRATEGY FOR SUCCESSFUL BUSINESS
Table of Contents
Introduction....................................................................................................................3
Logistic management strategies: Fundamental reasons for success..............................3
Produced designs are limited and one of a kind.........................................................4
‘Fast fashion’ strategy................................................................................................4
Balance between supply and demand........................................................................5
Comparison with another successful and unsuccessful organisation.............................7
Maintenance of competitive advantage..........................................................................8
Providing advanced customer experience..................................................................8
Zara provides quality products as promised...............................................................9
Improved internal and external communication: engaging stakeholders...................9
Improved marketing strategies...................................................................................9
Issues identified within system of company................................................................10
Recommendation and conclusion................................................................................11
References....................................................................................................................12

3LOGISTICS MANAGEMENT STRATEGY FOR SUCCESSFUL BUSINESS
Introduction
Zara is known for its fastest growing business model in fashion apparel industry. The
company has achieved its success based on its logistics management strategy and world-class
supply chain community. Consequently, it is able to restrict the chances of ‘product
obsolescence’, one of the major issues faced by premium apparel brands. Most of the apparel
businesses face the difficulty of managing products in stocks which are not on demand and
on the other hand, they have to deal with the increased inventory cost simultaneously. There
is a strategic approach behind their successful logistics management. This report is going to
identify issues within the organisation and identify strategies behind its successful operation
by comparing it with a successful and an unsuccessful example from fashion industry.
Besides, the concept of sustainability will be introduced with example of Zara’s policy of
achieving competitive advantage in recent times.
Logistic management strategies: Fundamental reasons for success
It has been observed and approved by business experts as well that Zara’s logistics
management and supply chain management strategies are the key component behind the
company’s success. However, as per the study of Choi, Chiu and Chan (2016), the entire
supply chain and logistics management have not developed in a day without struggling with
risk. Fashion industry is highly uncertain. It is not easy to predict the market trend and nature
of customer preferences is dynamic too. Traditionally, designers and stores are the one who
push a design or style to market. On the contrary, contemporary styles are mostly influenced
from movies and television series characters’ costumers. Celebrity wardrobe has been
influencing public demand dominantly since a long time. Therefore, strategy of pushing the
market to buy something they have designed is difficult. That is why Zara has always been