Management of Supply Chain and Logistics - A Case Study of Zara

Running head: MANAGEMENT OF SUPPLY CHAIN AND LOGISTICS
Managemen
t of Supply
Chain and
December 14
2018

MANAGEMENT OF SUPPLY CHAIN AND LOGISTICS
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Table of Contents
Introduction................................................................................................................................2
Overview of Zara...................................................................................................................2
Logistics Management Comparison between Zara and Dell.................................................3
Zara’s Supply Chain...........................................................................................................3
Supply Chain of Dell..........................................................................................................3
Difference between Zara and Dell.........................................................................................3
Suppliers.............................................................................................................................4
Philosophy of Production...................................................................................................4
Storage................................................................................................................................5
Distribution........................................................................................................................5
Communication..................................................................................................................6
Zara and Myer Comparison...................................................................................................6
Comparison between Zara and Wal-Mart..............................................................................7
Competitive Advantage of Zara.............................................................................................7
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
Logistics management is the part of the supply chain management; it develops implements as
well as manage the storage and flow of services and goods to fulfill the requirement of the
customers (Christopher, 2016). Logistics management is a fundamental aspect of the success
of the operations of any business and has a direct influence on its bottommost line. As the
volume of freight increases and transportation becomes more difficult, the prerequisite for the
management of the logistics increases (Sople, 2012). The aim of this report is to analyze the
case study of Zara in order to understand the reason behind its success in comparison to its
competitors present in the market. Moreover, the report will highlight the concepts through
which Zara can maintain its competitive advantage in the market.
Overview of Zara
Zara is a famous reputed fashion manufacturing and designing company. It has been
announced as the well organized and market retorting enterprise in the fashion industry of
United Kingdom. Mr.Amancio Ortega, the organizer, and creator of Inditex is respected for
his planned decisions along with his winning strategies for market competition that have been
adopted by his rivals (Inditex, 2018). Zara is one of the Inditex brand, established in 1975, is
the famous and renowned fashion icon. The company is only making high profits but the
consumers in armlet appreciate it. The most of the seized market by the parent company i.e.
Inditex is for Zara. According to the estimations, Zara earns 80% share of the company’s
profit (Zara, 2018). Zara is Spanish based business and effectively established itself as a
leading business. The company is considered as the fashion icon, which is offering services in
the industry since decades and still, its consumers are very much satisfied that in the future it
is going to be better.

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Logistics Management Comparison of two famous companies
The strongest businesses of two different industries i.e. fashion and manufacturing are Zara
and Dell. Zara is known for manufacturing clothes and Dell is known for manufacturing
computers. Both the companies have operative strategies and effective supply chains.
Supply Chain
Supply chain management of Zara is dissimilar from other businesses. There are diverse
portions in its supply chain such as manufacturing, distributing, crafty, and sourcing to
channels (Trade Gecko, 2018).
Supply Chain of Dell
In Dell's supply chain, three key players are suppliers, business, and customers. In its supply
chain, the customers place the order and company provide its parts to different suppliers.
After this, the suppliers of the company directly deliver the order to their consumers (Dell,
2018).
Difference between Zara and Dell
The supply chain of both the companies i.e. Zara and Dell is completely diverse. The supply
chain of Dell is horizontally integrated whereas, the supply chain of Zara is vertically
integrated (Logistics Bureau, 2017). Dell is involved in the computer's production as well as
employs third party suppliers in order to deliver goods to end user. Considering Zara, it is
involved in the manufacturing of garments and cloths in diverse areas. The main success
causes of the company are designing, the capability to deliver products on time, trade, and
manufacturing. With the strong control on every part of the organization, Zara is capable to
recognize the customer's preferences in the diversified environment. The control over the
successful supply chain procedure, Zara is capable to create quality products in the short time
duration. The advantage of Zara's supply chain is that it could be managed effortlessly as