Logistics Management of Zara: A Case Study

Logistics Management

LOGISTICS 1
Executive Summary
This report outlines the logistics management system of Zara Retail Company. The
first section of the report will address the background information of company with an
overview to company strategic objectives in the global market. The report also consists a
broad discussion about the Zara strategies in respect with the logistics management in area of
sustainability. There are various aims behind the success of Zara logistics management such
as synergy between organization operations strategy, just-in-time production, inventory
management, unified and central logistics and robust distribution network.
In last, this report offers several recommendations and conclusion that gives various
suggestion to Zara for further expand its operations in the global markets.

LOGISTICS 2
Table of Contents
Overview....................................................................................................................................3
Zara Background Overview.......................................................................................................3
Vision and Mission Statement...................................................................................................4
Zara Strategic Goals...................................................................................................................4
Zara Logistics Management.......................................................................................................4
Factors behind Zara Logistics Management Success.................................................................5
The synergy between Company Operations Strategy............................................................5
Just in Time Production.........................................................................................................5
Inventory Management..........................................................................................................6
Centralized Logistics..............................................................................................................7
Robust Distribution Network.................................................................................................8
Information Systems..............................................................................................................8
Maintaining Sustainable Competitive Advantage......................................................................8
Conclusion................................................................................................................................10
Recommendations....................................................................................................................10
References................................................................................................................................11

LOGISTICS 3
Overview
For any organization, managing supply chain is a fundamental aspect that leads to an
organizational success in both the industry and global markets. With the help of dynamic
strategies, an organization can gain sustainable competitive advantage. Logistics
management is one of the primary aspect Supply chain management. It deals with planning,
implementing and control efficiency. From the corporation manufacturing point to the
distribution and destination of consumption, Logistics management deals with various
information in order to meet the customer needs in an effective manner (Seuring & Muller,
2008). To compete in the market, most of the organizations approve supply chain mechanism
to handle widespread and inclusive information. This will help the business enterprises to
align their operational and management strategies to the supply chain strategies.
For broadly understand the term supply chain and logistics management, the report
use case study of Zara, a Spanish company. Moreover, this informative report critically
analyses and measures the company logistics management strategies.
Zara Background Overview
A global Spanish fashion retail company, Zara was founded outback in 1975. The
company was vertically integrated into an organization called Inditex. The major operations
of the company are in Europe as Zara and the design of their manufacturing system is far
ahead from the other retailers in the industry. In addition, Zara also is known for adopting
latest trends and delivering high quality products at affordable prices (Roll, 2018). In most of
the countries, Zara tried to create fresh fashion so have to make competitive stand in the
market. Moreover, the target group of the company includes those individuals having high
and medium purchasing power and needs of fashionable fashion. Zara also takes advantage of
advanced technology for the development of new merchandise and make the optimum
utilization of the available resources (Fernie, Sparks & McKinnon, 2010). This helps them in
executing new and creative ideas in an adequate time. H&M, Benetton, Gap are some of the
major competitors of the company, however, the company develops as the best regarding
fashion at reasonable prices.