Zara postponement strategy essay

I only developed some points on Spanish suppliers. If we compare this network to competitor ones, it is quite different. In fact, concurrent engineering allows saving money by reducing the number of changes during the development process.

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Inscription on the back in German: This competitive advantage is related to supply chain and due to the vertical integration which enables developing products quickly.

This presents Zara with a real opportunity to set itself apart from other low-cost retailers, by developing a specific ethical strategy that will enable it to retain a relatively low cost, but also allow it to sell itself as an ethical producer Okumus Manufacturing postponement When using manufacturing postponement, firms are able to operate without holding finished good inventory while maintaining a majority of their stocks at pre-customised form.

Zara bets on the sales advisor to do that job: And this is just the beginning. Furthermore, it occurs sometimes that a product is sold well in a country but not in another one, Zara uses reverse logistics by moving stocks from a store to another one in order to place this product in a country where the sales will be higher.

This configuration gives to the company a huge balance of power. Scroll down for a report on that. Therefore, cost reduction needs to be critical and continuous, without potentially putting the company in a position where it may face questioning in relation to the ethics of third party suppliers, particularly when it looks towards outsourcing into the developing regions.

Zara has achieved a position within the market that encourages individuals to look towards the brand as a means of gaining cutting-edge fashion, at a low cost, and the design of these products is therefore critical, if this position is to be maintained. These two elements ensure quick response and efficiency of the company.

The effects of agile attributes on competitive priorities: A complaint of any customer can be solved within 24 hrs by a person who handle complaints if he is not able to solve it within 24 hrs then he try to convince that customer, that it would be solve within few hours or days.

Regarding Asians ones, documents are scarce, probably suppliers work without respecting human rights children work, etc.

Journal of Business Logistics, 19 2 Figures 2 and 3. The French And Indian War: Concurrent enginnering leads to a unified product concept. The company woos the customers to subscribe for Future Credit Card. What is the right supply chain for your product.

From an individual perspective, CRM software may be reviewed and positioned in a way that helps sales people easily enter sales activities or opportunities.

Continuous evolution within this area is a necessary part of retaining the position and also looking towards cutting costs, by altering product designs to take into account the cost of production Finch Companies could become agile by improving the flow of information all along the supply chain, from final consumers to raw material suppliers.


Shipments from the distribution centres to stores are made twice a week, based on customer demand in each individual store. This method avoid uncertainty by creating a desirable and manufacturable product and bring it very quickly to the customers. An International Journal, Vol.

Zara’s supply chain: Case Study Essay Sample

What is the right supply chain for your product. Shorter life-cycles making timing crucial. As clothes are innovative ones, companies have to be agile. 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 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.

Read this essay on Zara Supply Chain Strategy. Come browse our large digital warehouse of free sample essays. 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 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 Case Report Essay

A Zara supply chain strategy was the key term of my research and was an important part of my theoretical focus on supply chain strategy. Postponement strategy can considerably reduce inaccurate forecast risk and do a responsive supply chain strategy.

Zara has accomplished the benefits of agile and flexible supply chains for its innovative. 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 postponement strategy essay
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