Importance of Supply Chain Management and Success Factors of Zara

Running Head: SUPPLY CHAIN MANAGEMENT
Supply Chain Management
Name of the Student
Name of the University
Author Note

1SUPPLY CHAIN MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Importance of Supply Chain Management..............................................................................2
The principles of supply chain management...........................................................................4
Overview of Zara.....................................................................................................................5
Zara’s success factors..............................................................................................................5
The Great Hershey’s Chocolate Meltdown of ’99...................................................................6
Recommendation.............................................................................................................................7
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9

2SUPPLY CHAIN MANAGEMENT
Introduction
It has been found that the supply chain management is not only a process that serves to
generate a reduction in the costs or budget in order to create business and operational efficiencies
in an organization (Christopher 2016). The modern supply chain management consists of an
alignment with the business process and suitable strategies so that the market and economic
values are realized. A well –structured supply chain management also provides a competitive
advantage to the companies over the industry rivals. In recent times, the digital age has brought
a complete transformation in the world of commerce.
Around twenty-two years ago, the entire process of supply chain was arduous and labor
intensive. It used to consume a huge amount of time along with being mostly disorganized. The
age has changed and the delivery time has reduced from 2 weeks to just 2 hours. The high speed
communication and automated systems have leveraged the supply chain management and
increased its demand in the market (Fahimnia, Sarkis and Davarzani 2015). The present report
will deal with the ideal strategies of supply chain management. It will proceed by analyzing the
success factors of Zara’s brilliant supply chain management. It will further compare the failure or
success of another company with that of Zara. The report will conclude by giving an outline of
the entire report and recommend a better way.
Discussion
Importance of Supply Chain Management
It is well known worldwide that supply chain management is an essential part of most of
the business organizations. A well –maintained supply chain increases the customer satisfaction