Supply Chain Management Essay Example | Topics and Well Written Essays - 1500 words - 3

fork over Chain Management - Essay moralZara contributes a total of 2/3rdof the total Inditex Group. With a turnover of more than $150 million, the conquest mantra for Zara is to offer the best quality at shortest period span possible and cheapest prices. 2.0 Supply Chain care at Zara With a rapid change in the market conditions, wish every other sector, the mould industry has been under immense pressure to efficiently manage its interpret chains. It has become important for the companies to plus their capacities and better manage its operations in order to save costs and also remain competitive. Supply Chain Management has a very important power to play in the success of Zara fashions. The man of the final product a d its final delivery to the customer involved the art and engine room of Supply Chain Management (SCM) working to streamline the operational functions and styles of doing work. The Zara managers have clearly defined the role of SCM as a blend of a variety of procedures that begin from the preliminary stage of the product bowl the completed utilization of the same creation by the customer. It is a procedure which entails the development, execution, of these plans, and scheming of the product wee with the purpose of providing absolute fulfillment to the customer with regards to the quality of the product, (Abernathy, Dunlop, Hammond, and Weil, 2000/1). Subsequently, by the application of better management capabilities, Zara supply chain fashion has achieved the following Greater operational flexibility Ability to expand geographically centering on core competencies Ease of achieving economies of scale Sourcing Strategies of Zara and its Supply chain configuration As compared to its competitors, the fashion tick off Zara follows quite a different business strategy with regards to the sourcing and its chain structure. Unlike most of its competitors, Zara has not resorted to or given the slightest inclination towards outsourcing. Normal ly, most of the major fashion brands, have outsourced more than 90% of the operations to cheaper economies like India and China. More than 80% of the material is manufactured at the in-house facilities controlled by Zara in Europe. Although the cost of manufacture is 20% higher in Europe than in Asia, Zara s money box possesses a competitive advantage over its competitors with congress to its operations. With the help of its business and strategic partners based in Europe, the company easily has a product throughput time of 3-4 weeks from the initial conception phase to the final distribution to stores. In order to achieve this time manoeuvre of 3-4 weeks, as compared to 3-4 months by its competitors, Zara designs and cuts the cloth at its in-house design centers and colors the fabric in just quad colors to keep the costs low. The process of dying and design printing is kept waiting till the fabric finally enters the manufacturing phase, thereby minimizing the waste and inventori es. This allows Zara to adapt to the latest market trends and customer requirements in minimum time. On the other hand, the competitors of Zara, who outsource their work to Asia, are not able to take advantage of this prospect they are not able to offer flexibility to change orders as per attests trends and fashion requirements. The orders with these competitors are place for the whole season in bulk and are kept as inventories in distribution facilities for much(prenominal) larger periods of time as compared to Zara.