FAQ About Zara
What is Zara's supply chain strategy?
Zara's supply chain strategy is a key factor in the company's success, as it allows the company to quickly respond to changing fashion trends and bring new products to market faster than its competitors. Here are some key features of Zara's supply chain strategy:
Vertical integration: Zara controls every aspect of its supply chain, from design and production to distribution and retail. This allows the company to be highly responsive to changes in demand and to quickly bring new products to market.
Fast fashion: Zara is known for its "fast fashion" model, in which new collections are introduced every few weeks. The company uses data analytics to track customer preferences and quickly respond to changes in demand.
Just-in-time production: Zara produces its products in small batches and relies on just-in-time production to minimize inventory and reduce waste. This allows the company to quickly respond to changes in demand and avoid overproduction.
Local sourcing: Zara sources its materials and production locally whenever possible, which allows the company to quickly respond to changes in demand and reduce lead times.
Technology: Zara uses advanced technology to track inventory, manage production, and optimize its supply chain operations. For example, the company uses RFID tags to track inventory in real-time, which helps to minimize stockouts and reduce waste.
