Zara's Supply Chain Management: A Comprehensive Analysis Report

This report provides an overview of Zara's supply chain management, examining its key components and strategies. It delves into Zara's unique approach to fast fashion, including its quick turnaround of designs and frequent inventory changes. The report analyzes Zara's supplier relationships, emphasizing the importance of effective supplier relationship management (SRM) and the role of communication and clear responsibilities. It also explores the impact of information systems on supply chain efficiency, including the use of technology for planning, sourcing, and delivery. Furthermore, the report discusses procurement and outsourcing strategies, highlighting the importance of risk management and sustainability in Zara's supply chain operations. The report concludes with recommendations for enhancing customer experience and maintaining a competitive edge through sustainability efforts and continuous improvement.

Supply Chain Management

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Overview of the company............................................................................................................3
CONCLUSION & RECOMMENDATION....................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Supply Chain Management can be termed as the organisational flow of products and their
facilities that will create the term of source of products and ends at the product’s proper manner
of the utilisation. It will also include the movement and packing of raw materials that will
involve in work in progress as the inventory and fully furnished of the goods. It will also termed
as the main section of the targets of supply chain management that is to be supervise and get
relate to the production, distribution and delivery of products and their facilities (Schleper, and
et.al., 2021). The management consider in this report is Zara. Zara will changes its clothing
designs every two weeks on average, while competitors that have change their designs with
every two or three months. It will carry as about to the 11,000 distinct items per year in
thousands of stores as globally compared to competitors that would carry 2,000 to 4,000 items
per year in their stores. It can be done by companies that are very good and grab to hold as over
to an internal inventories, production, distribution, internal creations and sales. It will likewise
incorporate the development and pressing of crude materials that will include in work in progress
as the stock and completely outfitted of the products. It will likewise named as the primary part
of the objectives of inventory network the board that will be administer and get identify with the
creation, circulation and conveyance of items and their offices
TASK
Overview of the company
Clothing items that have the initially prices that are based on market demand, not on cost of the
manufacture. It will deals with the various sort of the sections that will lead to the times for the
role of delivery purpose of unique fashion items that will combined with short creation for
allowing Zara to provide consumers as more elegances and variety and will still create the sense
of determination to buy it as because the items will get frequently sell out as rapidly. And that
specific product or style might not be available again after it sells out (Al-Rakhami, and Al-
Mashari, 2021). Zara sells 72 percent of its products at full price as compared to the industry
with the average set of selling section in only 55 percent of the items at full price as effectively.
Yearly there is 10 percent of inventory that are mark to be unsold that are associated with the set
of the business as averages of 17 – 20 percent.

Supply Chain Relationships –
Supplier relationship management (SRM) is the term of the procedure for determining the
suppliers that are critical to the business and will also realise the section of maintaining set of the
relationships with those key suppliers as effectively. As supply chains will become more
complex that the need to be it clear and quantifiable manner to measure the role of every supplier
who subsidises or diminishes from the success of the business is mark as more essential term in
the business. Zara is the clothing and fashion retailer that utilise its supply chain to have an
expressively change in the basic manner to function in a very outmoded sector of the business.
Provider relationship the executives (SRM) is the term of the strategy for deciding the providers
that are basic to the business and will likewise understand the part of keeping up set of the
associations with those vital providers as adequately. As supply chains will turn out to be more
perplexing that the should be it clear and quantifiable way to quantify the part of each provider
who finances or lessens from the achievement of the business is mark as more fundamental term
in the business. Zara is the garments and design retailer that use its inventory network to have an
expressively change in the essential way to work in an exceptionally old fashioned area of the
business. By determining the issues and problems and the task of challenges and their problems
as they attain to avoid them from any thought of risk in the management as effectively. By
building an effective set of the term it will easy for the business. It will termed as an important
section that require to be guided. By communicating a regular course of work it will be easy for
the business to hold their plan of actions on regular basis. Communication will creates a shared
understanding in the business. A mutual manner of an understanding will help the sections to
avoid the section of the confusion or issues and differences. An Effective communication will
involve the regular and healthy dose of face to face discussion as effectively. Contract Managers
that should ignore hiding behind emails. And remember, communication is a two way street. By
establishing the manner of the roles and responsibilities it will be easy for the business
executives and managers to lead the orientation of planning. As the company follow their
responsibilities to major the basic nature in the business as effectively. As the contract managers
and shareholders are need to have the manner of the confidence that the supplier is bringing what
they are being remunerated to as effectively in the business. With the proper manner of the
actions in the business that defines the major role. The company plays an effective role in the
business for setting the idea as effectively in the business. By determine or identify the manner

of the risk and issues in the business it will be easy for the company to maintain their task of
objective and plan of actions (Bag, Gupta, and Wood, 2020). As the issues will be the reason
for the failure of company’s operations and functions in the business as effectively.
Supply Information systems –
Information systems (IS) have an impact on the supply chain management (SCM) with
the key procedure like planning, sourcing and delivering the sections of the levels that have the
range from strategic operations to managerial plan of actions (Zhang, Yu, and Zhang, 2020).
As the Information systems (IS) and supply chain management (SCM) have a key factor of
relationships that have been resulted in varied and collapsed sources as effectively. It will offer
the manner of the organised analysis at the connection of supply chain and information systems
(SCIS) that will aim to deliver an organisation for present field of areas. Buying technology
comparable to that utilised by Zara is very well easy. But for the technology that are to be used
as effectively, participants must acquire as about to their sections and the operating role of the
functions and procedures that are used by Zara. The managers and executives plays an important
role for giving advice to their subordinates or employees with the motive to help them in their
operations and functions in the business. By evaluate and determine the manner of the risk and
issues in the business it will be easy for the managers and executives to overcome that risk in the
definite period of time.It involves the manner of the business by which the estimation of the
financial and economic set of an impact of each event as effectively in the management
(Chakphet, and et.al., 2020). By developing the set of the mitigation contingency plans it will
be easy for the business for starting with the most probable sector and highest impact of the
section of the risk scenarios with the help of other business ideas.Suppliers have an impact on the
company’s goodwill to be the part of the market. In context to the Zara to ensure the quality of
the supplier of the goods and the products. It can be aware of the manner that how they treat their
workers, source materials and interrelate with set of the other associates. By conducting the
manner of the financial terms as due to the diligence to make sure the long term supplier
feasibility in the business as effectively. As it is desirable to the manner of the source from the
low cost term of the locations as around to worldwide. As the product and the goods that can not
be get delivered in the proper manner of the time that the supply chain that are being as more
vulnerable in an efficient manner. By establishing the reliable and the secondary contractors in
the various sections to decrease the issues and problems.

Procurement / outsourcing –
Procurement outsourcing has define as the role of the sections that will consider the
manner of the supplier collection, agreement cooperation or required supervision that are
becoming more common as effectively. Workers say that outsourcing these actions will provide
the consumers with the basic manner of advantages as effectively. By maintaining the issues and
problems in the business for increasing the productivity and profitability as efficiently. By
spreading the awareness in the management as related to the risk it will be easier for them to
overcome in the business.By getting aware of the issues and risks that the suppliers that might
face the orientation of the sections that will include the term of the regulations for more
agreement (Damtie, Ibrahim, and Yikna, 2020). It can affect the country risk, economic and
political conditions or anything that might have an impact on their manner of the skills and
ability to get serve the basic orientation of the condition in the business. Insurance is an essential
in many section of the term that will be termed as of the life. It should be easy for business as an
essential in the supply chain. By understanding the manner that move the manner of the liability
that is not cover in the business. It involves the warehoused goods and product of their services
that are as against to the loss or damage that occur anywhere in the world, no matter the carrier
or mode of transportation will relates to company or not as to it. The Zara Company that has
need to work upon its supply chain management so that it will help them in enhancing the
manner of the customer experience. Integrating sustainability in the company supply chain
management so that the risk of the company will failure to decrease that will also lead as towards
company profitability (Amalia, Darma, and Maria, 2020). By the manner of the company that
can support the company and its market position in the competitive term of an environment. The
Company that need to work upon where they are deficient and what are the weakness of their
supply chain management as effectively. Sometimes an ineffective supply chain that will fill
their turn as around to the failure of the company with the following set of the operations of the
business plan of actions. As by enhancing the term of the sustainability efforts of supply chain
they can easily manage competitive edge in high competition environment. By addressing the
various sort of the problems in the company that must concentrates on key plan of actions in
formulating the manner of the decision making that helps the Company in building the strong
and effective manner of the supply chain. As after that continuous audit that must be take place

so that they can that easily mention that weak as per to the areas and its strength in the supply
chain as effectively.
Sustainability
A sustainable supply chain will also help the business of management to enhance the
role of efficiency while saving the manner of the money at the same time. By using sustainable
tools and methods. It will maximise the role of the effectiveness of creating the basic section of
the significant cost savings in the management. Zara is termed as an important set of the example
of sustainability at work (Choi, and Chen, 2021). By determining the manner of the role of
sustainability targets and goals to create the basic set of the plan for how to attain the manner of
the targets as effectively. By maintaining the sections that involve in the supply chain as because
it plays an important role in the business of management and its environment that can have social
and financial impact. If the company want to continue its sustainability in the supply chain
management then there is the perfect solution to get communicate with the cultural and core term
of the values in its own supplier and customers (Kumar,, 2020). Company can work upon
fulfilling effective communication with well organised code of conduct so that sustainability
terms of an efforts of the company management gets improvised. By this minimum term of the
utilisation that will take place in respect to director of the supplier team so that the practical term
of the solution that will be delivered and lots of opportunity for the company betterment in the
management as effectively. By maintaining the proper flow of the communication that will help
as towards to the innovative solution that eventually that help in structure of the strong supply
chain. The Company that will need to recognise to suitable term of the standard for their pre
determine that are particular as per to the target supplier. Standard of self-assessment that will
lead as towards too for deep understanding to resolve the issues that happen in the supply chain
management (Munir, and et.al., 2020). By this issue that will minimise from the ends of the
supplier to an outcome of the loss of valuable sort of the various terms of an issues that will be
brought by dealer to manage the term of the sustainability of the supply chain. For growth of the
supply chain that with sustainability loss of the behavioural change that has been determined by
the company. Planning and training will facilitate the best term of the follows of the team that
will lead as towards to the positive operation and execution of the distribution as with the help of
an effective exercise dealer as effectively. By an efficient training of the productive issue that
will be transport from the ends of supply chain management team. It will help in enhancing the

relation of supply team with company. It will satisfy all the obligation of the supply chain team
that is an important for an adequate flow of the management that will deliver a desired sort of the
product to the customers as effectively.
CONCLUSION & RECOMMENDATION
As per to the above mentioned report it has been concluded that, Zara is working with
keeping up with every view point and noting the manner of the situation. Zara is having a long
list of strengths and some of the weaknesses by which the management is successfully handling
and also overcoming. From the above study it can also be seen that Zara is utilising their
operations and functions for more set of the opportunities and will also increasing the manner of
the benefits from it. The issues and problem can be easily solve by determine them and will
applying proper actions to get decrease the manner of the risk. When an efficient term of supplier
team will enhance their performance by an efficient set of the training then audit plan that can
easily evaluate the flow of continuous improvement of each staff. Self-assessment programme
will communicate and create a program that can decide the issues of the face in the supply
management team as effectively. The Company that should involve the manner of transparency
in its effective team so that it will boost the morale of employee to improve the performance.

REFERENCES
Books and Journals
Schleper, M.C., and et.al., 2021. Pandemic-induced knowledge gaps in operations and supply
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of Things Supply Chain Management. Sensors. 21(5). p.1759.
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bibliometric analysis. Journal of Enterprise Information Management.
Choi, T.M. and Chen, Y., 2021. Circular supply chain management with large scale group
decision making in the big data era: The macro-micro model. Technological Forecasting
and Social Change, 169, p.120791.
Said, R., and et.al., 2020. Development of supply chain management sustainability index
(SCMsi). International Journal of Supply Chain Management. 9(1). pp.902-907.
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Chakphet, T., and et.al., 2020. The Role of Big Data Analytics in the Relationship among the
Collaboration Types, Supply Chain Management and Market Performance of Thai
Manufacturing Firms. International Journal of Supply Chain Management, 9, pp.28-36.
Damtie, T.A., Ibrahim, A.J. and Yikna, B.B., 2020. Supply chain management performance of
HIV/AIDS commodities and factors affecting it at health facilities of SNNPRS of
Ethiopia; from the perspective of achieving 90-90-90 strategies. Integrated pharmacy
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outbreak: Optimizing its role for Indonesia. Current Research Journal of Social Sciences
and Humanities. 3(2). pp.196-202.
Kumar, R., 2020. Sustainable Supply Chain Management in the Era of Digitialization: Issues and
Challenges. Handbook of Research on Social and Organizational Dynamics in the
Digital Era, pp.446-460.
Munir, M., Jajja, M.S.S., Chatha, K.A. and Farooq, S., 2020. Supply chain risk management and
operational performance: The enabling role of supply chain integration. International
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review of triggers, challenges and conceptual framework. In IOP Conference Series:
Materials Science and Engineering (Vol. 827, No. 1, p. 012054). IOP Publishing.
Bui, T., 2020. Supply chain finance, financial development and profitability of real estate firms
in Vietnam. Uncertain Supply Chain Management. 8(1). pp.37-42.
Bag, S., and et.al., 2020. Big data analytics as an operational excellence approach to enhance
sustainable supply chain performance. Resources, Conservation and Recycling, 153,
p.104559.