ZARA 1 ZARA 0 Logistics and Supply Chain Management

Running head: ZARA 0
Logistics and Supply
Chain Management

ZARA 1
Executive Summary
Zara is world’s largest fast fashion retailing chain which offers its service worldwide. The
company has implemented different logistics strategies to reduce the time in distribution and
increase the efficiency of its supply chain. Due to global expansion, the company faces
various issues such as increased competition, changing demand, compliance with legal
regulations and shorter product cycle. The corporation control different part of its supply
chain operation which assists them in reducing its product’s price and increase overall
efficiency. The firm has centralised various operations and it controls them directly from
head office such as distribution, sourcing, warehousing, production, designing and others.
Effective control over supply chain reduces Zara’s cost of manufacturing and distribution; it
also reduces company’s operations’ cost. The corporation has gained a competitive advantage
due to effective communication system, efficiency in operations, and control over different
processes. Other corporations can also implement the logistics strategy of Zara to reduce their
cost and increase their efficiency which provides them a competitive advantage. Various
recommendations can be implemented by the enterprise to address its issues such as
cooperating with a variety of designers to offer new products. Opening new distribution
centres for reducing refurbishment time and warehousing cost. The firm should increase its
investment in marketing strategy to attract new customers. These strategies can assist the
company in maintaining their competitive advantage and sustain their future development.

ZARA 2
Table of Contents
1.0 Introduction..........................................................................................................................3
2.0 Current Situation/Issues Analysis........................................................................................4
3.0 Fundamental Reasons for Zara’s Success............................................................................4
3.1 Communication System...................................................................................................5
3.2 Control over Operations...................................................................................................5
3.3 Rapid-Fire Supply Chain Management............................................................................5
3.4 Positive Brand Image.......................................................................................................6
4.0 Comparison between Zara and Other Corporation..............................................................6
4.1 Comparison between Zara and another Successful Company.........................................6
Dell’s Supply Chain...........................................................................................................6
Zara’s Supply Chain...........................................................................................................6
4.2 Comparison between Zara and an Unsuccessful Company.............................................7
Target Canada’s Supply Chain...........................................................................................7
5.0 Zara’s Competitive advantage..............................................................................................8
6.0 Suitable for Other corporations............................................................................................8
7.0 Conclusion..........................................................................................................................10
8.0 Recommendations..............................................................................................................10
References................................................................................................................................11

ZARA 3
1.0 Introduction
Zara is a well-known multinational retaining chain which offers fast fashion products to its
customers; it was founded by Amancio Ortega in 1975. The company is considered as one of
the most innovative and devastating retailers in the fashion retailing industry. As per 2017,
the corporation has established more than 2200 stores across 93 nations worldwide (Forbes,
2017). The parent company of the enterprise is Inditex Group. In 2017, Inditex’s profits jump
more than 18 percent as Zara’s global sales increases and the firm reported revenue of 654
million euros in the first quarter of the year (BBC, 2017). Due to its global expansion, Zara
has reported a growth in its sales by 14 percent in the first quarter of 2017. In 2017, Zara
started offering its products through online platforms in various new locations such as
Vietnam, Malaysia, Singapore, and Thailand and it is planning to expand its operations in
India through an online platform. The corporation has achieved tremendous success because
of its effective and efficient supply chain which allows the company to offer new products to
its customers in just 14 days (Bagaria, 2014). This report will focus on analysing the
attributes and issues of Zara’s supply chain operations by examine the case study called
“Zara: A case of Rapid-Fire Fast Fashion Strategy”. The report will evaluate the reason for
success for Zara and compare its operation with a successful and an unsuccessful firm.
Further, the report will examine the reason due to which Zara has gained competitive
advantage and provide recommendations that can be implemented by the firm to maintain its
competitive advantage.