Supply Chain Management of Zara and Marriott

Running Head: OPERATIONS MANAGEMENT
0
Operations
Management
Zara and Marriott
Student’s Details
9/17/2019

OPERATIONS MANAGEMENT 1
Executive Summary
The following report discussed the supply chain of the service industry and product industry. The
following report has chosen Hotel Marriott as the Service Company and Zara fashion as the
Product Company. The first step of the report highlighted the information of both companies and
explained the supply chain of both companies. After this, report compared and contrasted the
supply chain of Marriott and Zara. After the comparison, Report suggested that how both
companies can improve their supply chain management. The report also analyzed the many types
of issues which can impact the effectiveness of supply chain of both service and manufacturing
organizations.

OPERATIONS MANAGEMENT 2
Contents
Introduction.................................................................................................................... 3
Supply Chain Management................................................................................................. 3
Zara Fashion Retailer..................................................................................................... 3
International Marriott..................................................................................................... 4
Contrast and Comparison between the Supply Chain Management of Zara and Marriott..................4
Improvement in Operations management of Zara......................................................................6
Improvement in Operations management of Marriott.................................................................7
Conclusion..................................................................................................................... 8
References List............................................................................................................... 9

OPERATIONS MANAGEMENT 3
Introduction
Supply chain management is an important function of every company whether it is a service
company or product company. The following report will discuss the supply chain management of
Zara and Hotel Marriott. Zara is a Spain based fashion retailer company which provides latest
fashion trendy outfits and accessories. Its parent company is the Inditex group that is the largest
fashion retailer of world (Inditex, 2019a). Marriott International is one of the leading
hospitality companies which provide luxury and classy stay at the best locations of world. It has
hotels at most of the popular places in world (Harris, 2017).
The following report will highlight the supply chain management functions of the Zara and
International Marriott as well as it will discuss how both companies can improve the operations
of the company.
Supply Chain Management
Supply chain management includes the raw materials that manage the flow of goods and services
and turn them into end products. This commercial offer includes the activation of activity on
maximizing customer value and the market for a competitive advantage (Farooque, et al.,
2019). Zara fashion retailer is the company of product industry and International Marriott hotel
is the company of service industry. Both companies have different type of supply chain.
Zara Fashion Retailer
Zara changes the design of its clothes on average every two weeks, while the competition
making the changes in every two or three months. It is providing around 11, 000 items per year
in thousands of stores worldwide, which carries 2000 to 4000 products per year in its stores. The
highly sensitive supply chain of Zara is at the core of its commercial success. Company
executives are always on the lookout for new fashion trends at social gatherings. New items can
be designed to store 4-6 weeks and for existing items can be replaced in two weeks. The main
target market of the company is the age group from 24 to 35 years and customers who want to be
trendy. The stores of Zara mainly located in the urban areas and with the help of this strategy,
Zara reduced its cost of supply and advertisement (Inditex, 2019b).