Zara is one of the largest international fashion companies. It belongs to Inditex, one of the world’s largest distribution groups.want to what’s know zara success strategy ?must read to know zara success strategy.
The customer is at the heart of our unique business model, which includes design, production, distribution and sales through our extensive retail network.For more information, please visit the Inditex Group website: www.inditex.com
you can’t imagine Zara produces around 450 million items a year.its all because they are using digital strategy
Question?
The question apply here is how zara took control over its supply chain management ? how zara took synergy over business and operations strategy?
Answer:
Timely production
Zara delivers fashionable and trendy garments catered for different segments through a controlled and integrated process
Zara keeps a significant amount of its production in warehouse and launches adequate amount of garments to outlets without cause any scarcity in production both in outlet and warehouses with different taste of clothes at very minimal time
Zara produce garments in six months in advance to only 15 to 25 percent of a season’s line. And it only locks in 50 to 60 percent of its line by the start of the season, meaning that up to 50 percent of its clothes are designed and manufactured in the middle of the season.
Zara Store managers communicate customer feedback on what shoppers are looking for. That data is instantly funneled back to Zara’s designers who begin sketching on the spot.and at very frequent time the layout with design is ready to match the requirements of store manager.
This strategy allows Zara to sell more items at full price because of the sense of scarcity and exclusiveness.
Inventory management
Zara another key factor is its inventory management model that place in every retail shop ,just to ensure the timely management of clothes and determine the scarcity of any quantity that should delivered to every single retail shops. thus is this way zara just ensures that each store receives what exactly they need at the time and in result zara reduce the extra bulk of stock from there store .
thus all zara production facilities are located to nearby by zara outlets for easily shipments of batches .
Centralized logistics
Another key element or success factor for zara is centralized logistics.this all declensions are take in very centralized manner in company.
zara productions are worked in very timely manner and every demands of stocks are manufactured in a specific time slots. Each Zara outlet sends in two orders per week on specific days and timing. Trucks leave at specific times and shipments arrive in stores at specific times. Garments are already labeled and priced upon destination.
As a result of this clearly defined , every staff involved (from design to procurement, production, distribution, and retail) knows the exact time line and time slot to produce ,manufacture and delivered the garments.thus this is centralized logistics
Solid distribution network
Zara have very strong distribution network and it provides its garments in all over the world with in a specific time slot.Zara’s strong distribution network enables the company to deliver goods to its European stores within 24 hours, and to its American and Asian outlets in less than 40 hours.
This brand’s success story shows the strength of its operations. Its cross-functional operations strategy, coupled with its vertically integrated supply chain, enables mass production under push control, leading to managed inventory.
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