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Fast Fashion Supply Chains: Zara's Success

   

Added on  2020-04-07

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Running head: SUPPLY CHAIN MANAGEMENTSupply Chain Management StrategyName of the Student:Name of the University:Author’s Note:
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2SUPPLY CHAIN MANAGEMENTExecutive SummaryThis report deals with the supply chain management strategy in the context of Zara andUniqlo. However, these two organizations are very popular in the global fashion industries.However, development of new design is the core strategy of the supply chain management ofZara as product manufacturing is the part of supply chain management. On the other hand, lowpricing strategy with a high quality product is the prior area of Uniqlo. Price is one of theimportant drivers of the supply chain. It has been received that cost reduction is necessary foreach organization to achieve profitability. For this reason, Uniqlo planned their product designbefore one year of launching their new products. This supply chain planning enables them topurchase raw materials with low price. Low inventory strategy is a unique supply chain strategyof Zara that reduces the risk of vast inventory with old products. In the context of Zara, theirmaximum production is done in Spain while in the context of Uniqlo their core production areais Japan. Hence, it has been received product differentiation, cost reduction; sourcing and pricingare the vital stages of supply chain management strategy.
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3SUPPLY CHAIN MANAGEMENTTable of ContentsIntroduction......................................................................................................................................4Summary of the two cases...............................................................................................................4Case study of Zara........................................................................................................................4Case study of UNIQLO................................................................................................................6Analysis of the critical success factors in context of Zara...............................................................7Analysis of the critical success factors in context of Uniqlo...........................................................9Analysis of the performance of the two firms...............................................................................10Three decision phases in the supply chain management of Zara...............................................10Three decision phases of supply chain management in context of Uniqlo................................11Push or pull view in the supply chain management......................................................................11Supply chain capabilities, scope of strategic fit and implied demand uncertainty in context ofZara and Uniqlo.............................................................................................................................12Use of various supply chain drivers in context of Uniqlo and Zara..............................................13Conclusion.....................................................................................................................................13References......................................................................................................................................15
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4SUPPLY CHAIN MANAGEMENTIntroductionSupply chain management is associated with three aspects including operational, tacticaland management leaves an overall impact on the business strategy (Dedhia 2017). Productdevelopment, customer’s management, logistic and vendor management are also parts of thesupply chain management. Any company can select the strategic global suppliers by leveraging the entire purchasesof an organization. This current study deals with the supply chain management in the context ofZara and UNIQLO. These two organizations are very popular in the international fashionindustry. However, the blend technology of Zara allows them to be a major outsourcemanufacturer in the low-cost countries. On the other hand, UNIQLO has developed a positiveimpact on the inexpensive clothing market. This study will give a brief overview of the supplychain management strategy of such two organizations and their operation process in the globalmarket.Summary of the two casesCase study of ZaraZara is a well-known fashion industry in the global market. Hence the blend technologyis one of the vital strategies of Zara makes a good record for Zara in the fashion industry. Thisorganization is a major player in the outsourced manufacturing in the low-cost countries. Zarakeeps huge swaths in their in-house production process. Between the year 1996 to 2000, this firmbecomes tripled in size and gained a huge profitability (Zhelyazkov 2011). However, due to thepoor strategic decision of the competitors, Zara is going to be one of the fastest global fashion
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