Abstract

This case discusses the unique supply chain management practices of Spanish garments retailer Zara, which enabled it to gain competitive advantage over other fashion retailers in the world. Zara’s vertically integrated supply chain system enabled the company to place the latest designs in any store across the world within a period of two to three weeks. The company produced garments as per the latest trends in a limited quantity. Zara introduced 12,000 designs every year, with new designs appearing in the stores globally, twice a week. The case explains in detail the design, production and distribution processes of Zara’s supply chain.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze Zara’s way of managing supply chain
• Study the design, production and distribution processes of Zara
• Evaluate how Zara was able to maintain exclusivity of its products through efficient supply chain management.

Keywords

Zara, Supply Chain, Vertical Integration, Designing, Production Planning, Distribution, Retailing, Procurement, Store Outlay