Case Study Of The Zara Fast Fashion Supply Chain

Introduction:

In this case study, I will be talking about the Zara Fast Fashion distribution system, it supply chain and it is vertical and horizontal integration. Briefly, we talk about Zara; Zara started its textiles business back in 1963 until date, over 53 years in this business. The first outlet of Zara has opened in 1975 in the centre of La Coruña, Spain. As of today, they have 2162 Zara fashion outlets around the globe.

Zara Supply chain

Supply chain defined as "a network of organizations which have to deal with upstream and downstream linkages between each other. The linkages reflect different processes and activities that produce value in the form of products and services delivered to the end customer". (Christopher,

However, Zara had overcome them energetically. Having topnotch technology is a super value to Zara, it has allowed them to fasten the production process. For thus whom looking to unique and only selective people having the same style Zara fast fashion will be there choice as Zara weekly having new collections. In addition, it has allowed them to reach the customer faster than any other brands. Most of the time others will benchmark you as there role model. Using this topnotch system had created easy and smooth handling on a product. This approach had increased the sales of Zara immensely. This leaded to be the most successful brad in the industry.

Horizontal and Vertical Integration:

A) Definition of Horizontal and Vertical Integration:

Horizontal Integration is "An organization may integrate horizontally be merging with other organization at the same level in the marketing channel". (Pride & Ferrell.2016, p. 427)

Vertical Integration is "in which a single channel member coordinates or manages all activities to maximize efficacies, resulting in an effective and low cost distribution system that does not duplicate services". (Pride & Ferrell.2016, p. 427)

Zara Competitive

To compete with its competitors and be unique in the market. As this had helped them to design, produce and store within two weeks. This process had allowed them to produce 11,000 new collection a year. At a time, jointly H&M and Gap producing 2,000 to 4,000 a year, and not only that this Integration had made extreme challenge to Zara competitors, by producing two to three new cloths a week. In other hand, Zara competitors are taking long time to produce their cloths and mostly they are load their outlets in big quantity seasonally could take them every four to six months. This integration is allowing the outlets manger to see what is new in production from design to the final pice.in order request what suit his market or the test of the customers. Moreover, this integration had allowed the customer to convey their interest directly from the outlets to the designers, and have the cloth ready from seven to ten days.

Zara had to integrate horizontally to open more factories, and heading towards chipper labour to reduce the cost of production, over 5,300 factories in over 50 countries. This integration had its challenged Zara in China as it needs from three to six months to reach to the outlets, from the time of order to storing and finally delivering to the