Zara case study supply chain management ppt. Supply Chain Management of ZARA

Spend money on anything that helps to increase and enforce the speed and responsiveness of the chain as a whole. They employ about 3, workers in manufacturing operations in Spain at an average cost of 8.

All raw materials case study evaluation sheet through the cube and all finished goods also pass through on their way to stores. The patterns are optimized via computer so that no fabric is wasted. Those that do not pass the test are cast aside. Because their clothing designs change often, it is harder for people to see them clearly on the Internet and thus they are encouraged to come into the stores instead and try on the unique fashions that Zara offers.

Press and Go Once the finished clothing is back at the Arteixo factory, workers handle finishing touches, such as adding buttons and detailing. Research salaries and median income in different cities to find out about labor rates.

Such short term focused order cycles make forecasts very accurate, much more accurate than competitors who may order every two weeks or every month. European stores received deliveries in 24 hours Asian stores received deliveries in 40 hours 25 Zara — Supply chain Improvements Consolidating Transport cost.

Request a Trial or Zara case study supply chain management ppt Us: Commercials had the intelligence to find out if a manager is making mistakes.

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And since supply chains are composed of people, process, and technology, even the latest and greatest technology is not a competitive advantage all by itself. Consider subdividing the two high level products Zara Basics Pack and Zara Fashion Pack into lower level product categories to get more insight and accuracy.

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Explain the supply chain principles and best practices you used to solve the challenges you encountered while expanding business plan in jharkhand supply chain and finding a way to keep it running efficiently for 15 days. Attaching Alarm tags were shifted from Back room to factories. Inbound logistics from suppliers are mostly by truck.

Agents for the company are always scouting out new fashion trends at clubs and social gatherings. Zara has 12 inventory turns per year compared to 3 — 4 per year for competitors.

Read the Online Guide Testimonials Sound good so far? Use screenshots and data from your simulations to illustrate your report. SCM Globe integrated theory and practice and students found the experience engaging and enlightening.

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Alarming Efficiency Next, labels for each country are attached. The less time management spends on tasks such as tagging merchandise, the more time it can spend selling. Close the information loop between the end users and the upstream operations of design, procurement, production, cover letter for project manager entry level distribution quickly and directly Stick to a rhythm across the entire chain.

Items are shipped and arrive at stores already on hangers and with tags and prices on them. Short production runs create scarcity of given designs and that generates a sense of urgency and reason to buy while supplies last. When they see inspiring examples they quickly send design sketches to the garment designers at the Cube.

Rapid timing and synchronicity are paramount.

Supply Chain Management at ZARA

They employ about 3, workers in manufacturing operations in Spain at an average cost of 8. Do not spend more than your allocated time doing research. In typical season, Zara produces different items.

Zara Clothing Company Supply Chain | SCM Globe

Semester after semester, class evaluations cite the popularity and practicality of the simulations. By far, the SCM Globe simulations made the course interesting and insightful. Leverage your capital assets to increase supply chain flexibility. THEN update and expand the Zara supply chain model using your research data. Annually there is 10 percent of inventory unsold compared to industry averages of 17 — 20 percent.

What are some lower level product categories that make up the Fashion Pack, or the Basics Pack?

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Stores place orders twice a week and emerson college honors thesis drives factory scheduling. Estimates vary on the number of Zara stores worldwide. That day operations planning cycle is what we are simulating in this case study.

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Manufacturing is centered in northwestern Spain where company headquarters and the Cube are located. Instead of setting the trends, Zara follows them. A Lean and Agile Supply Chain Stores take deliveries twice per week, and they can get ordered inventory often within two days after placing their orders.

In Spain customers visit Zara stores 17 times per year on average compared to 3 times per year for competitors. But for their main distribution and logistics hub they chose a more centrally located facility.

BEST PRACTICES IN SUPPLY CHAIN MANAGEMENT AT ZARA - ppt video online download

Quick Turnaround More than 2. Zara sells 85 percent of zara case study supply chain management ppt items at full price compared to the industry average of selling only 60 percent of items at full price. Lewis; Jose A. The designers sketch out new styles and determine which fabrics offer the best combination of fashion and price.

INDUSTRY OVERVIEW: COMPETITION

Major capital investments in production and distribution facilities to increase supply chain's responsiveness to new and fluctuating demands. Zara spends its money on opening new stores instead of spending a lot on ad campaigns. There will be other problems after you address this one. As a consequence, Zara does not have lots of excess inventory, nor does it need to do big mark-downs on its clothing items.

In Zara excellent master thesis ranked as the 46th most valuable brand in the world by Forbes see bibliography below. They can make many smaller bets on short term trends that are easier to call correctly. The Cube issquare meters 5 million square feetand highly automated with underground monorail links to 11 factories within a 16 km 10 mile radius of the Cube.

Zara used to rely on store managers to do this once the product reached the edit my research paper. Zara can afford this increased shipping cost because it does not need to do much discounting of clothes and it also does not spend much money on advertising. How Zara gets fresh styles to stores insanely fast—within weeks. The factories also use the monorail system to return finished products to the Zara case study supply chain management ppt for shipment to stores.

SCM Globe simulations are critical to integrating the various content elements of my "Managing Business Operations" class and is very popular as a learning tool for the students.

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Produce a new style in 2 — 4 weeks 39 Garments are trucked from the distribution center to stores within a day. Zara transports its merchandise to the U. Algorithm for allocating Inventory at logistics centers to stores. So items come off delivery trucks and go directly onto the sales floor.

Presentation on theme: "Supply Chain Management Case Study"— Presentation transcript:

You will see the continuous adjustments that need to be made to keep the supply working and to keep operating expenses and inventory levels under control. The SCM Globe app combines a mathematically grounded approach to rationalizing supply chains with an cover letter for project manager entry level, modern interface to yield unprecedented logistics insight.

Polka Dots It Is! I edit my research paper try and explain how a supply chain works, but to have the students actually see it happening on the computer was very educational. Well, don't just take our word for it.

Although more than 60, items move in and out of the center each hour, only a handful of workers are needed to monitor the process. When you load the Zara supply chain model from the library and run the simulation you will see a problem occurs on day 5.

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Kasra Ferdows; Michael A. And sometimes supply chain model files json files become damaged and they no longer work, so you want backup copies of your supply chain to restore from when that happens. They do only 50 — 60 percent of their manufacturing in advance versus the 80 — 90 percent done by competitors. A web search on Zara supply chain operations yields many results; this case is based on information found in the articles listed below: Start here to make the most of our app.

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Delivery time in Europe is even faster. So Zara does not need to place big bets on yearly fashion trends. The tool provides a "real world" simulated environment in which various case scenarios allow students to apply the theories and concepts which they have learned in the classroom.

It uses trucks to deliver to stores in Europe and uses air freight to ship clothes to other markets. Use that same approach as you expand into other countries outside of Europe.

They have become a recruitment tool for the course. Full operating cost per km is used for the monorail vehicles that move products between the Cube DC and the Zara garment factories because Zara owns those vehicles and pays for full round-trip costs.

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Because Zara is a privately owned company, it is not required to disclose information routinely released by public companies. See what instructors and other industry professionals who are successfully using SCM Globe have to say about our product.

The tool really enhances the learning experience. Zara factories in Spain use flexible manufacturing systems for quick change over operations. Add new vehicles and create delivery routes for them to deliver products to the new stores.

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  • And that particular item or style may not be available again after it sells out.
  • SCM Globe | Supply Chain Management Design & Simulation Online

They reach this market by locating their stores in town centers and places with high concentrations of women in this age range. Spanish retailer Inditex, owner of cheap-chic clothing chain Zara, pioneered the concept of fast fashion. You will need to adjust store delivery frequencies and amounts, and adjust manufacturing rates and supplier deliveries also.

The screenshot below shows the result of one simulation using the supply chain model outlined above.

ZARA's Agile Supply Chain

The sample template is set up for the Cincinnati Seasonings company, but look at how the reports read the simulation data and you will see how to change the spreadsheet as cover letter for medical representative without experience to accommodate this case study.

Clothing items are priced based on market demand, not on cost of manufacture. The short lead times for delivery of unique fashion items combined with short production runs enable Zara to offer customers more styles and choices, and yet still create a essay englisch schreiben aufbau of urgency to buy because items often sell out quickly.

The screenshot below shows a closeup satellite view of this facility. Transfer data and anecdotal information from shops to designers and production Track materials and products real time every step of the way, including in stores.

The fabric is then bagged and distributed to local sewing cooperatives, which return the finished garments to the factory within a week. That facility is located in Zaragoza in a large logistics hub developed by the Spanish government. Presentation on theme: And that particular item or style may not be available again after it sells out.

It relies on a combination of fashion reconnaissance -- spotting trends everywhere from the street to movies to couture fashion shows -- and information from its customers to keep its merchandise fresh.