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ZARA’S SUPPLY CHAIN 

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ZARA’S SUPPLY CHAIN MANAGEMENT

PRACTICES

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FOUNDED BY : AMANICO ORTEGA GAONA 

BORN IN : LEON, SPAIN IN 1936 A SALE FORMAT OF INDITEX GROUP - ONE OF THE WORLD’S LARGEST FASHION DISTRIBUTOR. 

AMANICO ORTEGA PABLO ISLA

CHAIRMAN FIRST DEPUTY CHAIRMAN & CEO

ORIGIN OF ZARA

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INTRODUCTION•

Ortega Worked As An Assistant In Apparel Shop And Set UpIts Own Fashion Retail Business.

• 1963: Started Manufacturing Housecoats With Name AsConfecciones Goa .

• 1975: Estd A Small Outlet In His Factory And Called OutletAs Zara.

•

1979: Estd A Company With Name As Industria De DisenoTextil ,Sa, Whose Flagship Brand Was Zara

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SUPPLY CHAIN MANAGMENT

• Supply chain management (SCM) is the management of a

network of interconnected businesses involved in the

ultimate provision of product and service packages required

by end customers .

• Supply Chain Management spans all movement and storage

of raw materials, work-in-process inventory, and finished

goods from point of origin to point of consumption. 

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SALIANT FEATURE

• Customize Retailing

• Vertical Integration of Production System

•

Exclusive Production• Involvement of Manager, Staff and Owner

• Reduce time due to Team Work

• Policy for Franchisees.

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INFORMATION FLOW FROM

CUSTOMER TO COMPANY

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DESIGNING

• Adapting new design

• Shelf life of design

•

High Fashion concept• Always Introduce fresh design

• Designer travel world wide

• Computer Aided Design

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Production

• Demand based production

• Flexibility

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DISTRIBUTION

• Central site for distribution

• High accuracy in Shipment

•

Efficient Supply Chain• Own Railway Infrastructure

• Straight away display of product

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STORE OUTLAY

• Uniform store outlay

• Store Outlay at Prime location

•

Store window designer• Display of clothes

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ADVANTAGE

• React quickly to market demand

• Fast Supply worldwide

• Anticipation of product

• Product quality and design• Highly Flexible Production System

• Automated Distribution System

• Low Risk for limited product

• Supply chain for maximize revenue

• Pull Strategy

• Maintain Low Inventory

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DISADVANTAGE

• Higher Cost

-Distribution

-Labor• High competition

• Lack of economies of scale

b h l

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