Zara postponement strategy essay

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Zara postponement strategy essay

Download Essay Get Full Essay Get access to this section to get all the help you need with your essay and educational goals. Case Study Essay Sample Purpose — The purpose of this paper is to understand how to develop a competitive supply chain in order to response to the speed of the customer changes in clothing industry.

Literatures review — The key success factors of the clothing industry are explained. Furthermore, Zara could set up a reverse logistics to develop a sustainable business. Zara postponement strategy essay — Three key points are relevant in this industry: The use of concurrent engineering ease to develop products quickly 2.

Finally, the ownership of the stores is a competitive advantage to understand the needs of customers. Customer demand changes in fashion clothing industry are quick and unpredictable.

Each time a customer come in a store, he wants to discover new products. The strategy sounds good and simple at a marketing point of view but that is a tricky challenge for supply chain managers.

They need to reduce lead time, be innovative and responsive with a high variety of products to manage. How do companies have to organize its supply chain in order to be responsive to changes rapidly while remaining competitive in price?

The aim of this essay is to explain how to develop a competitive supply chain in order to response to the speed of the customer changes in clothing industry. Afterward, I will explain you and analyse how Zara does to overcome competitors thanks to its supply chain and after I develop some future improvement ideas to stay competitive in the following decades.

According to Christopher et al. Every day, the customer wants a new fashion product at an affordable price.

The characteristics of fast fashion are instability of forms and constant changes to create unique products. As it becomes impossible to forecast new trends, companies have to focus on timing and to get responsive to market changes.

Each forecasting error or delay results in loss: The implications of these effects for supply chain management are numerous and important. As in the clothing industry, the competition is based on time-to-market, agility is an adaptation faculty to the unpredictable changes of customer behaviour.

Agility is required in fast changing environment in order to increase profit and outperform the competition. Companies could become agile by improving the flow of information all along the supply chain, from final consumers to raw material suppliers. Concurrent engineering is related to agility and is a concept that refers to the simultaneous participation of all the functional areas of the firm in the product design activity.

It ensures that the final design meets all the needs and that the product can be quickly brought to the marketplace while maximizing quality and minimizing costs Cox et al, Figures 2 and 3.

According to Yusuf et al. As clothes are innovative ones, companies have to be agile. The aim of QR is the reduction of the lead time between the design of a new product and the time it is sold to the final customer.

As the whole supply chain is dependent to the expectations of the customer, the communication through all the stages is very important.

The uses of information technology such as EDI, bar code, electronic point of sales; allow the spread of information. Moreover, partnerships or vertical integration in the supply chain ease the communication and enable companies to be more responsive to customer changes. Retailers and its suppliers need to be more closely connected through shared information than was the case in the past.

Zara postponement strategy essay

Finally, QR ensures a reduction of stocks, avoid forecasting mistakes and a better provision of service. That is a practice required in high competitive, volatile and dynamic marketplace.

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SUPPLY CHAIN STRATEGY FOR ZARA FASHION Which is Zara's main competitive advantage? The blend of technology-enabled strategy that Zara has unleashed seems to break all of the rules in the fashion industry. the postponement. Zara’s product development capabilities are essential to Zara’s business strategy and future success.

Strategic Partnerships and Cost of Production In comparison to competitors, Zara’s business strategy, in regards to strategic partnerships and cost of production, provide for a strategic competitive advantage. Zara’s supply chain: Case Study Essay Sample. companies use postponement in the aid of reduce stock.

Postponement is the fact of delaying customization of a product until the last possible moment (Zinn and Bowersox, ). With this strategy Zara is efficient and obtain products at a low price.

20% of the production is located in Asia. Zara Postponement Strategy Essay The case of Zara – The Postponement strategy I) Introduction In order to compete in the world of rising globalization and shortening of product life cycle nowadays, firms have to deal with the demand for increasing product variety to meet the diverse needs of customers.

The case of Zara – The Postponement strategy I) Introduction In order to compete in the world of rising globalization and shortening of product life cycle nowadays, firms have to deal with the demand for increasing product variety to meet the diverse needs of customers.

The case of Zara – The Postponement strategy I) Introduction In order to compete in the world of rising globalization and shortening of product life cycle nowadays, firms have to deal with the demand for increasing product variety to meet the diverse needs of customers.

Zara's supply chain: Case Study | Essay Example