Supply Chain Management Practices

Group Members:
DHRUV MAHESHWARI | DIVYA NAGAR | HITESH VARSHNEY |
SIDDHARTH SINGHVI

Introduction
Founded

by Amancio Ortega Gaona in

1963
Went on to become the flagship brand of
IndiTex, its holding company in 1979
Strategic buying and acquisition: bought
over 100 companies worldwide involved in
textile purchasing, textile manufacturing and
logistics
Objective was to integrate its operations
However, designing and production
remained in-house operations.

Fast Fashion Strategy

Pioneers

of customized retailing
From conceptualization to
development and delivery only 2
to 3 weeks
Vertical integration
Other fashion apparel brands take
anywhere between 8 to 12 months
to forecast trends.

Spotting Trends
Front

end salesmen give continual

updates to SMs - relayed to the Head
Office daily
Important data on preferences and
trends identified in the stores itself
Managers specially trained - at
identifying such fashion changes
Design team also moves internationally
to scout for newer and fresher trends.
Signifies robust feedback mechanisms

Designing
Separate

design units men,

women and children designing,
procurement and production handled
sepeartely
Vertical integration
Usage of CAD rapid prototyping
Only seasonal collections were
deliberated upon eight months in
advance.

Production
Automated

cutting facilities
Enhances flexibility, reduces
wastage
Decentralized sewing to 11,000
workers in 350 small workshops
faster completion of collections
Finished goods pre - tagged and
pre - ironed before dispatch saves
display time.

Distribution
Sorting

through optical reading

devices sorts 60,000 items every hour
Folded apparel and hung apparel
handled separately
Routed according to destinations using
automatic routing devices
Merchandise transported using airways
and roadways 98.9% accuracy in
shipments.

Store Layout
Prime

locations where pedestrian flow is

constant
Store interiors - high end European
boutiques
Neutral shades of paint and lighting used to
enhance the merchandise
Specialized window designing teams relay
the window display designs every week to the
stores
Merchandise arranged - to ensure that the
consumers spend more time inside the store.

USP

Trade off between higher

margins and increased
flexibility

SWOT Analysis
STRENGTHS

Vertical Integration
Strategic acquisitions
Effective trend spotting
Faster design development
and approval
Automated cutting less
wastage
Automated and robotic
sorting of merchandise
Image of exclusivity
Lower risks limited
inventory
Very strong IT systems

WEAKNESSES

Higher stitching costs

than rivals
Higher logistical costs
due to usage of
roadways and airways
for shipment
Very less expenditure
on advertisements
high dependence on
word of mouth and
point of sales exhibits

SWOT Analysis
OPPORTUNITIES

THREATS

Expansion into online

marketing pursuing
e-retailing options
The ever expanding
demand for high end
fashion apparel at
affordable prices

Rivals moving operations

to Asian production hubs
Customer switching
could become a problem
due to more economical
and affordable options
Growing popularity of eretailing
Diverse trends and
preferences across all
global markets

The Future of Zara

Collaboration

with online and etailing platforms could be a

possibility
Strengthening their vertical
integration model
Difficulty in applying present model
to promising Asian and African
markets
Over reliance on European markets
especially Spanish the bearish euro

THANK YOU !!!