Article 14 - Key takeaways: Zara being a clothing apparel...

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Key takeaways: • Zara being a clothing apparel store has set a trend of moving the clothing apparel into a innovative product rather then generic product. It’s strategy is to becoming responsive rather then being cost efficient. • The authors have found three main factors that support Zara’s supply chain: 1) Closed loop of communication that is vertically integrated per product family; 2) Maintaining the rapid and constant rhythm of operation (in Toyota terms “Takt time”) 3) Asset investment to keep control over its own design, production, distribution and sales. These principles reinforce each other, with one leading to the other. • Overall, the success factor in Zara’s case is also a matter of supply chain management philosophy and organizational culture – an organic, flat-structured organization does better as a whole. 2. Applicable SC principles: • Choice of supply chain strategy and strategic fit (Chapter 2). Zara has clearly chosen super responsiveness as its supply chain strategy, and it implements that strategy across
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This note was uploaded on 09/10/2010 for the course OMIS 627 taught by Professor Vora during the Spring '10 term at Punjab Engineering College.

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