Zara Case: Supply Chain 2015

 

 UNIVERSITY OF TEXAS AT SAN ANTONIO

Supply Chain Management MS 4543 Final Project “Analyzing logistics process and suggesting improvement o !A"A#  

C$sar Ch%vez &'()*+   ,dsel M$ndez  &-./5/  Al0ert 1ern%ndez ""234 Proessor Minghe Sun  April /) /)+ )

 

Index

3 4 5 5 + 6

I. Abstract II. Introduction III. Literature Review  !A !ARA RA""s cu currre rent nt #roc #roces ess s  !A !ARA RA""s bu busi sine ness ss stra strate te$% $%  Ti&e a an nd ''((exibi( i(iit%  Inv Inven ento tori ries es an and d# #ro rodu duct ctio ion n  !A !ARA RA""s #r #roc oces ess s ca ca#a #abi bi(i (iti ties es IV. )et*odo(o$%  +r +rob ob(e (e&s &s an and d, ,e eaa-n ness sses es  A&erican #(ant  urrent networV. Resu(ts  I&#(e&entation VI. onc(usions VII. Re'erences

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Abstract

Our tea&

2urr team 2u team em emer erge ged d in a se sear arch ch or or ne ne8 8 logi logist stic ic so solu luti tion ons s an and d po poss ssi0 i0le le opportunities in various companies that are 9no8n 8orld:8ide7 2ur main o0jective o  this research is to sho8 ho8 our 8or9 has 0y itsel a ne8 point o vie8 o the current 8ay o shipping products around the 8orld and innovative 8ays o improve the 9no8n and oten used ones7 -o ind the 0est choice or an enterprise to 8or9 8ith 8e searched or an organization that could provide us a large amount o data or in the 8orst case scenario the aculty to calculate and analyze it 0ecause o its ame and success7 -his -h is is the the re reas ason on 8h 8hy y 8e ch chos ose e the the co comp mpan any y !A !A"A "A a 8o 8orld rld:8 :8id ide e amo amous us organization that is in charge o delivering clothes and ashion accessories across the 8orld not only constantly 0ut changing the product itsel S;(uality logistic management costs and diminish their la0or  8or9 or ameliorate the current one7

II. 

Introduction

 

T*e Fas*ion Industr% toda%

-he cur curren rentt 8ay the 8or 8orld ld see sees s as ashio hion n has cha change nged d alm almos ostt co compl mplete etely ly compared 8ith ho8 it 8as done no more than t8enty years ago7 Fast ashion is a trending 8ay or the clothing industry to present ne8 collections 0rought rom the ashion 8ee9 in spring and autumn 0ut in a ast delivery using cheap >uality te?tiles and >uic9ly design ta9ing almost all o the production processes in developing countries li9e @ietnam China .ndia Me?ico etc7 -he suggestions that 8e 8ill propose are divided in three types Strategic -actical and 2perational7 -his dierentiation is very important to analyze 0eore starting the planning stage and even more 8hen the solutions 8ant to 0e applied7 -he strategic decisions are characterized or implicate investment on plants and cap capac acitie ities s int introd roduci ucing ng ne8 pro produc ducts ts and cre creati ating ng log logist istics ics ne net8o t8or9s r9s77 -h -his is 3

 

decision ma9ing level sho8s a timeline o implementation o three to ten years 0ased on historic data7 -actical decisions are recognized or changes on inventory polici pol icies es imp implem lement entati ation on o pro procu curem rement ent pol polici icies es and ado adopti ption on o tra trans nspor portat tation ion strategies7 -he implementation timeline o this 9ind o decisions are rom three to t8o years ye ars to com comple plete7 te7 -h -he e ope operat ration ional al de decis cision ions s sho sho8 8 imm immedi ediate ate res result ults s an and d are relatively easy to implement 8e 8ant to ma9e at least an operational decision ma9ing suggestion7 -his decisions could 0e Scheduling o resources routing o ra8 mate ma teri rial als s an and d ini inish shed ed pr prod oduc ucts ts so solilici cita tati tion on o 0ids 0ids an and d >u >uot otat atio ions ns77 -he implementation timeline o operational strategies is more or less than one day7 -his tell tells s us the the im impo port rtan ance ce o this this lilitt ttle le ch chan ange ges s in proc proces esse ses s that that im impa pact ct the the competences o a company in a long term planning7

III. 

Literature review

!ARA"s current #rocess

-his 0eing said 8e continue to discuss the position o !A"A in the mar9et on the current timeline7 -he mayor compara0le competitors o !A"A are =enetton 1BM and ap7 -his three as 8ell as !A"A have a vertical scope and include men children and 8omen clothes in their collections7 .n co compa mpari riso son n 8i 8ith th a ap p an and d 1B 1BM M 8h 8hic ich h o8 o8n n mo most st o thei theirr st stor ores es 0u 0utt outsource all production !A"A o8ns much o its production and most o its stores7 =enetton in other hand has invested in production on a relatively high >uantity 0ut it its s stor stores es are are ran ran 0y lilice cens nsee ees7 s7 -h -hey ey co comp mpet ete e in the the sa same me ma mar9 r9et et 0u 0utt ha have ve dierences that ma9e them 9ind o uni>ue or e?ample the “ashion “ ashion level# o !A"A is higher than the other three 0ut its prices are lo8er than =enetton and ap7 1BM 4

 

sho8 sh o8 a re rela lati tive vely ly go good od ash ashio ion n leve levell Ds Dsti tillll lo8e lo8err than than !A !A"A "AEE 0u 0utt it its s pric prices es are are considera0ly lo8er than !A"AuG and o  course !A"A7 -he design and production unit o !A"A is located in Ha CoruIa Spain 8here a large amount o outsourced operations are made in more than a thousand irms7 !A"A is updated 8ith the ashion 8ee9 at a very precise level 8ith a creative team o more than / designers oering li9e this a designer line o clothes or every0ody at any age at an attaina0le price7 2ne “invisi0le# cost is payed thought the te?tile >uality o their clothes 8onuic9ly response to mar9et demands 8ill get proita0le results7 -o have this results they developed a 0usiness model that incorporate the three ollo8ing goals develop a system that re>uire short lead times decrease >uantities produced to decrease inventory ris9 and increase increase the num num0er 0er o ava availa ila0le 0le sty styles les and choic choice7 e7 -h -his is go goals als he helpe lped d to com0ine moderate prices 8ith the a0ility to oer ne8 clothing styles aster than its competitors7 .n terms o inormation and communication protocols !A"A spend less than 75K o total revenue on .- and .- employees account or only 75K o !A"Auently a0out a0out 65K o the merchandise is changed three to our 8ee9s so they need to 0uy it on the spot7 1is invent inv entory ory mo model dels s are 0as 0ased ed mai mainly nly in det determ ermini ining ng the >u >uant antity ity tha thatt sho should uld 0e delivered to every single one o its retail stores so the stoc9 delivered is strictly limited limite d ma9i ma9ing ng sure that each store only receive receive 8hat they need7 Also the >uic >uic9 9 in: reason turnaround allo8s !A"A to ship more oten and in smaller 0atches7 !A"A has a centralized distri0ution system that gives the chain a competitive advantage 0y minimizing the lead:time o their goods7

Fi$ure 2. 3istribution S%ste&

!A"A