Zara Supply Chain Strategy: Successful Selection & Management - Essay Sample

Explain why the company supply chain strategy is successful, for example, the selection and management of suppliers and the determination of information needs and systems.

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Many aspects of the chain have led to the success of the Zara supply chain strategy. These have seriously supported the Zara chain in controlling the factors that their opponents cannot control by any means. They are capable of making from a mark of their products that they produce and able to store several in their warehouses within a limited period (Chopra et al., 2013). Significantly, they are not only capable of producing their products in time but also able to control when and where their goods are transported. Significant reason being, the Zara personnel can get information at the right time to the right people. The act has enabled them to be ahead in their operations.

Additionally, by being time conscious, they know what their customers desire at their times of need (Ferdows et al., 2013). Zara suppliers do not believe in overstocking to attract the customer’s attention, and they instead keep little commodities on hand to serve their customers. This criterion enables them to bring to stock new updates within a short period. All these operations and involvement to work has benefitted the company at large since they must not sell their produce. Customers are much attracted to their services since the records are ever-changing, which is a different case with many stores.

What advantage does Zara gain against the competition by having a very responsive supply chain?

The Zara suppliers have recorded several advantages since they can modify more often, this is due to the ability to transport to their warehouse not less than twice a week and the fact that they do not keep the larger quantity of goods at hand. They are also able to be at the top, considering the current trend of sales in the market since their stock turnover is high (Ferdows et al., 2013). Due to the ability to identify market opportunities, they can as well decide to divide their products to the other market hence leading the increase in the rate of sales, thus a high percentage of stock turnover. The process can quickly be done since they are capable of transporting their products from and to the stores.

What advantage does the company gain from replenishing its stores multiple times a week compared to a less frequent schedule? How does the frequency of replenishment effect? Improve customer satisfaction?

Merits encountered by replenishing the stores multiple times a week over less frequent schedule is the ease and ability of the Zara suppliers have to be able to stay ahead of their competitors in the market by implementing new trends. According to Thoma et al., (2013), if there is any misleading information in the market structure, the case is reported to ensure an instant action is taken. The act of less frequent turnover of products, which results in overstocking, is what is defined to be a less regular shipping schedule (Chopra et al., 2013). Therefore, this aspect can never give room for frequent turnover. Moving business is determined by the ability to allow inflow and outflow of products.

Customers are triggered to purchase commodities if there is frequent replenishing of products in the stores since this enables them always to see new appearances being added to stock more often. Therefore, the customer is capable of securing the net worth of every stock in the store; this is due to the frequently replenishing of stock (Ferdows et al., 2013). The act of often stock turnover will enable regular customers to know when new products are shipped to the market.

What information on infrastructure does Zara need to operate its production, distribution, and fast fashion retail network effectively?

Zara more often has applied the use of mobile phones and also sometimes fax machines as their modes of communication to their store managers and suppliers for several years. Due to this ability to implementing constant communication relationship has enabled them to work with a tiny misunderstanding and misinterpretation. More recent use of computers has outweighed the other means of communication (Ferdows et al., 2013). Networks are more efficient to be used since the managers, or the storekeepers can use sites like Skype or office video calls, which make it easy to communicate to individuals across the world. Online services have impacted a lot on the ease of obtaining information on the new trends in the market, depending on where they are located (Chopra et al., 2013). The ability to communicate face to face with the designers of specific products by the production managers is exceedingly useful since it allows for room to question, and adjustments are made considering the production manger’s desires.

References

Chopra, S., Meindl, P., & Kalra, D. V. (2013). Supply Chain Management: Strategy, Planning, and Operation (Vol. 232). Boston, MA: Pearson. http://www.iuj.ac.jp/gsim-f/im-info/syllabus/2015S/OPR4150Li.pdf

Ferdows, K., Lewis, M. A., & Machuca, J. A. Harvard Business School.

Thoma, G., Popp, J., Nutter, D., Shonnard, D., Ulrich, R., Matlock, M., ... & Adom, F. (2013). Greenhouse Gas Emissions from Milk Production and Consumption in the United States: A Cradle-To-Grave Life Cycle Assessment Circa 2008. International Dairy Journal, 31, S3-S14. https://www.sciencedirect.com/science/article/pii/S0958694612001975