Report on Analysis of the Supply Chain of Zara
Added on 2020-05-16
13 Pages3278 Words335 Views
Running head: ANALYSIS OF THE SUPPLY CHAIN OF ZARAANALYSIS OF THE SUPPLY CHAIN OF ZARA Name of the Student Name of the University Author Note
ANALYSIS OF THE SUPPLY CHAIN OF ZARA1 Executive SummaryThe report is based on the analysis of the supply chain quality of an organization and theprocess of selecting the suppliers. The organization that is taken into consideration is Zara,which belongs to the fast fashion industry and the suppliers play a major role in the success.The major aspects of discussion in the report are identification of the benefits and problemsrelated to supplier selection. The appraisal of the suppliers is also important to decide thenature of the products. The effect of the selection of the suppliers on the relationship betweensuppliers and buyers is also discussed in detail. The ways of selecting the suppliers are alsoanalysed in the discussion. The report is concluded with the learning that the supply chain ofan organization plays an important role in their success.
ANALYSIS OF THE SUPPLY CHAIN OF ZARA2Table of ContentsIntroduction....................................................................................................................3Discussion related to Supply Chain Management of Zara.............................................3Relationship between the buyer and supplier.............................................................4Supplier selection criteria...........................................................................................5Barriers and risks........................................................................................................5Problems and benefits related to supplier selection...................................................5Effect of supplier appraisal on purchasing.................................................................6Relationship of supplier appraisal with nature of product.........................................7Factors related to supplier selection...........................................................................7Ways of selecting, managing, monitoring and assessing suppliers...........................8Relationship of the speech with the supply chain management of Zara....................8Conclusion......................................................................................................................9References....................................................................................................................10
ANALYSIS OF THE SUPPLY CHAIN OF ZARA3IntroductionZara is an organization that operates in the fast fashion sector and the origins of thecompany is in Spain. The organization was founded in the year 1975 by Rosalia Mera andAmancio Ortega. Zara is the major brand of Inditex group and is also considered as thelargest retailer in the world. The fashion organization also owns many other brands including,Pull&Bear, Massimo Dutti, Stradivarius, Bershka, Zara Home, Oysho, Uterque. As reportedin the year 2017 Zara is managing around 20 collections of clothing within a particular year.Zara first started its operations in the year 1975 and they further expanded their internationaloperations in the year 1988 (Beske & Seuring, 2014). The first international operations ofZara had started in Portugal and starting from this year they further entered many othermarkets including, United States, France, Mexico, Belgium, Sweden and Greece. Zaraentered the Asian market in the year 2002 and started its operations in Japan, China,Singapore, Malaysia and India. The other countries where Zara has expanded its set-ups are,Russia, Morocco, Estonia, Romania, Hungary, South Africa, South Korea. The online storeof Zara was opened in the year 2010 and the website became active in Portugal, UK, Italy,France and Germany (Brandenburg et al., 2014). The analysis in the report will be based on the supply chain management of Zara andother aspects including the relationship between the buyers and the suppliers and theselection criteria of the suppliers. Discussion related to Supply Chain Management of ZaraThe supply chain management related strategy of Zara is the major element thatincreases the competitive advantage of the organization in the market. The financialperformance of the parent company of Zara, that is, Inditech was impressive in the year 2015and the net worth of the organization was more than 100 billion dollars. The company was
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