Inditex is the world's largest retailer of fashion brands with eight well-known product types worldwide. Inditex's brands are selling in over 202 markets around the globe. Online business has been on the rise with Inditex taking advantage of online trading. It has over 96 markets that have more than 7000 stores (Mejias, Garrido, & Pardo, 2015). Inditex began its operations in the year 1963 when it started as a small business owned by a family in a small workshop that was making women cloths. Over several years, the firm continued working closely together as a single company worldwide with much of its concern on fashion products as well as other beauty components (Mejias et al. 2015). By this time, Inditex was designing, manufacturing, and distributing, which was bringing more customers close to them as they produced quality products that were affordable to their customers (Mejias et al. 2015).
Amazon is an American online business platform. It is a multinational technology company which has its headquarters in Seattle, Washington (Amazon, 2015). It has its primary specialization on online trade and other technological related services. Amazon is considered one of the largest online trading platforms, among other platforms such as Facebook, Google, and Apple. Amazon has a network of well-distributed outlets. As a result, it is considered as an impediment of renowned corporations because of its massive application of technology (Amazon, 2015). Amazon is, therefore, the biggest online trading platform and market where most of the people who like online shopping place their orders on electronics, fashion wear, and many more.
Additionally, Amazon is the leading internet platform by revenue globally. It is the second biggest employer firm in America; it is also among the most valued companies in the world. Finally, Amazon is the world's second-largest technology firm by revenues (Amazon, 2015).
The e-commerce platforms in the world have risen over the last years due to innovations in the technology industries. E-commerce platforms apply the use of a software application that allows an online business to manage their websites, place their orders, make sales, do marketing of their products and other operations and make payments for the products they shop. The E-commerce platform, just like other huge business firms in the world, offers a wide range of their prominent features that the people may need for their day to day living to run their business and other activities. Amazon and Inditex are some of the most preferred e-commerce platforms in the world (Amazon, 2015).
Majority of the people have a preference for using online shopping platforms due to their affordability. The people who are busy in their daily activities tend to prefer these platforms to shop for what they need as they do it in the comfort of their homes and offices where the products are shipped for them to collect. Additionally, online platforms allow people to build from scratch, which is far away from the question for the majority of business and is only real for huge companies with vast assets. Online companies such as Amazon and Inditex are the most established platforms in the world, and for their success to come, they must institute several measures.
Online e-commerce platforms have much of their success grounded on technology and innovation. Investing in technological gadgets is among the most critical influencers of how well the online trade platforms come out. Logistics and affordability of these platforms also add up on to the success bag of these platforms. Logistics also form an essential aspect of these platforms. This paper will attempt to look into the similarities between logistic that are set and followed by Inditex and compare them to those of Amazon. Similarly, the research will also look at the differences in the logistics laid down by the two firms.
What are Logistics?
Inditex, which is one of the leading world's fashion e-commerce platforms in the world, has several strategies that ensure its success. One of the most essential is the logistics, which right plans must be instituted. Logistics is a word that is used to describe the procedural approach of producing and ensuring that the products get to the market on time as well as how they are delivered to the clients on time (Christopher, 2016). It is an imminent aspect of supply chain management which most firms, both the online platforms and other companies that deal with the supply of goods and services apply it involves planning, managing products, and services as well as additional necessary information from the place of origin to the destination or to where the customers are. Proper logistical measures, therefore, make the company reliable and win the trust of the customers (Christopher, 2016). Inditex being aware of this, has instituted logistical measures to aid in their success. Additionally, logistics play a crucial role in cost reduction and increase the efficiency of services to customers.
Logistics, therefore, lay down a set of the sophisticated mechanism of transiting goods and services from one place to another as per the required set patterns and using the most appropriate means of transport. It also sets guidelines on the shipping and reception of the products and services on the other side by the desired recipients (Christopher, 2016). Logistics is also critical in the exportation and importation of goods and services. Warehousing, purchases, and supplies, planning for production, inventories as well as customer relations are as well provided for by the logistics. Therefore, logistics make up a critical aspect in any business, which may primarily determine the level of success of the company (Christopher, 2016). Proper logistics often leads a firm into progress, and the contrary happens when a firm lays down inappropriate logistics. Amazon and Inditex have their logistics laid down, which have similarities, and others are distinct, as will be captured in this research.
Inditex is the world's largest Spanish based fashion firm. The company's principle stores and outlets are Zara which is also well known for several other groups of homes belonging to Zara (Mejias et al. 2015). It deals with the manufacturing of products related to fashion and beauty. Zara was initially an outlet of the rejected orders of women's nightdresses and pants. As a result, robust foundations were formed, which aided in the realization of the association and cooperation between the manufacturers and the retail traders of the products (Mejias et al. 2015). The customer demand and satisfaction create the primary proprieties of the parent group Inditex and its Zara stores. The firms have the interest of their customers at heart hence customer-centric management and supply logistics. It is imperative to note that Zara is a worldwide organization comprising of multi-national companies (Mejias et al. 2015). Still, it is a subsidiary company of Inditex, which is renowned and the largest apparel retailer in the world. The Inditex Corporation has ownership of over 100 textile companies and over a thousand retail outlets across the globe. Zara is, however, a flagship brand of the larger Inditex that has the ability to captivate massive customers for maximum sales of their products in retail and wholesale basis hence making is prominent (Mejias et al. 2015).
The internal and external forces of Zara give its competitive advantage over its opponents. This determination has been made using the five forces model analysis, which uncovered stiff competition that Inditex faces from its contenders such as Benetton, H&M as well as Gap (Mejias et al. 2015). The logistics that Inditex has in place give it an outstanding characteristic compared to the competitors. In the year 2008, Inditex laid down several strategies that paved its way through to reach the top-notch of the success in the business to become the largest fashion retailer in the world (Mejias et al. 2015). Thanks to are well-planned logistics as were it not for its proper strategies, the position it holds would not have been realistic.
The industrial standards of various businesses globally are dynamic. They change from day to day due to technology, logistical sophistication, as well as other forces that determine the economies and the market temperatures. Currently, due to market and economic dynamics and market instabilities affecting the demand of products makes it have a limited lifespan. As a result, it becomes difficult for any company that ascends into glory to rest and maintain the same beauty for long. The logistics of Inditex provides excellent delivery speeds, which make it convenient to place orders with the company (Mejias et al. 2015). Its vertical integration, as well as its massive technological deployment, gives it a better platform to continue shining. Additionally, collaboration with the main activities and the organizational use of strategic logistics and resources contributes to Inditex's competencies as well as its competitive advantage as compared to its competitors.
Supply Chain Management and Warehousing
Inditex applies strategies that are viable in the business, which include the production of the high-quality product as well as steady and reliable supply (Crofton, & Dopico, 2012). Timely delivery of the ordered products by their customers also facilitates the company endorsement hence massive success. The company's value for their customer is outstanding, and this gives them the benefit of loyalty from the customers. By being able to come up with strategic and viable logistics, Inditex has been able to win the trust as well as the confidence of most people in the world hence increasing the number of the customers who order for their goods. The influence of the supply chain that Inditex and Zara use gives them a decisive competitive advantage (Crofton, & Dopico, 2012). The manufacturing time and supply chain involved until the last recipient of the product is favorable. The company has suitable warehouses that aid in the storage of their products after manufacturing, which ensures that the company never runs out of stock. For instance, if the company does not have adequate storage facilities for its inventory, it would get to a point where its customers place an order only to be told that it is out of stock or forcing them to wait for its manufacture (Crofton, & Dopico, 2012). This would be time-consuming and would form a reason for the customers to withdraw their trust in the company hence affecting the customer population. Adequate facilities for storage ensure that the company has enough stock in store, which is ready for dispensation upon orders from the clients, which allows fast delivery and convenience (Crofton, & Dopico, 2012).
Adequate Distribution Outlets
Adequate outlet stores in many parts of the world are an important logistical strategy that allows their access by many people from different parts of the company. Accessibility is an advantage to them as the clients find it convenient to place orders in the nearby outlets where an order may be placed and delivered on the same day to the clients (Crofton, & Dopico, 2012). Considering the busy schedules of the people currently, convenience is imperative, and any customer-centric business has to be put in place. Placing an order only to wait for days feels so inconvenient, and this would amount to the loss of confidence from the existing customers and potential customers, which is a massive problem for business as that way, customers are lost hence the business acceptance, and loyalty from the customers will decrease. A decrease in the number of cust...
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