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About ZARA
SCM, Responsiveness, Flexibility
Zara’s Three principles
STP Strategic
Conclusion
CONTENTS
About ZARA
1
About ZARA
- keeps half of production -> in-house.
- manufactures, distributes products -> small batches
- design, produce, and deliver -> 15 days
- do not relying on outside partners
- retail stores to a rigid timetable
“You need to have
five fingers touching the factory
and five touching the customer”
1
ZARA’s Rapid performance
ZARA’s competitive advantage
SCM
Flexibility
Responsiveness
ZARA have a short SCM.
So they have a ability to respond in quick changing
market’s Need.
Design
Retailing
Distribution
Sourcing &
Manufacturing
FAST SCM
1
SCM
6 Months
1970
3-4 month
4-6 weeks
7-8 weeks
Sample Garments Made
Design Sketched
Other
5-6 weeks
2000
4-6 weeks
4 Hours
6 Weeks
1
Flexibility
: Always new products but limited supply
Responsiveness
Several~
100000
5~7
5~6
40000
New…(생략)
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the subsequent sales and discounting prevale
- High traffic in the store
(1) Close the Loop
Buy Materials 35%
The finished product from Provider 40~50%
: Always new products but limited supply
Mon Tus Wed Thu Fri Sat
Trucks /
Air Freights
Prepriced and tagged products on hangers
15:00
15:00
15:00
18:00
Rest time
order
(In 24h)?
(In 48h)?
(In 72h)?
Europe
U.S.A
Japan
(2) Stick to a Rhythm
* Merits of
- Production of garments in small batches
- Company policy of delivering two shipment week’s
- Transporting products by air and truck
- Shipping some garments on hangers
98.9% shipments accuracy
Less than 0.5% shringkage
10% inventory of sales
(2) Stick to a Rhythm
volatile market
5 story, 500,000 m2
Shipment 2.5million items
800 staffs + 400 extra staff
& New 100 million, 120,000m2
logistics cente
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