Zara Supply Chain Management

ZARA women’s clothing

Introduction

In today's market, the competition becomes stronger not only domestic company but also international company. Consumer demands are changing more often and the company has to react rapidly in order to responds with the new trends and consumer requirement. Thus, many companies are increasingly to apply the power source of competitive advantages which called supply chain management. SCM is “the integration of key business processes from end user through original suppliers that provides products, services, and information that adds value for customers and other stakeholders” (Cooper et al. 1997). Zara is one of the most successful apparel companies which have an efficient supply chain management in its business process. Zara is a Spanish fashion retailer established in 1975 by Inditex own by Amancio Ortega. Zara stores offer products for men, women, and children as well home decor. However, the majority of Zara’s revenue is the women clothing account for 60%” (Lopez& Fan, 2009). Zara’s clothing for women are divided into 3 different categories: Zara women, Zara basic and Zara TRF. Zara woman is higher end line and features the above retail model. This line mainly target the white collar working women aged 25. The style is more haute couture appeal and consists of working style such as formal suits. Zara’s basic line is features more basic items with fabrics of lower quality than Zara woman. The style is very flexible and suit for any Zara customer age 17 such as everyday T-shirt, evening party gowns at very reasonable price. The Zara TRF is basically like a juniors section for the store which focus on the urban appeal for the Zara customer age 13-25 such as trendy denim and graphic t-shirts. This line is very casual clothing. It can be proper for everyone. Each of these clothing lines consists of 5 sub categories including lower garment, upper garment, shoes, cosmetics and complement (Carboni, 2009)....