Just in time inditex

Zara supply chain

Joseph Schumpeter, the great Austrian economist, focused economic development on two factors: the entrepreneur and innovation. Innovation does not mean opening another business similar to the existing ones, but refers to disruptive innovations that change the state of the market. Think, for example, of Airbnb and the change it has brought about in the vacation rental market or Inditex and the transformation it has meant in the textile manufacturing and distribution market.

Some economists defend the existence of a fourth industrial revolution, characterized by the fusion of the physical systems of the first and second industrial revolution (think of a car or a traditional washing machine), with the cyber systems of the third industrial revolution (software, internet). Thus, we now find cyber-physical systems, i.e. all the intelligent devices that are so common today (televisions, cars, refrigerators, houses, etc.) that combine the physical with software and the internet.

Zara inventory management

The rise of Amancio Ortega and ZARA has been extraordinary and has given life to an unstoppable multinational. This man had little experience when he started his business, yet he managed to create a chain of stores that today dominates the world’s high streets, becoming the richest man in the world in October 2015.

The Galician chain is perhaps one of the best examples of a business model based on Lean techniques, outside the automotive sector, which has allowed them to be competitive in the market and achieve global success.

JUST IN TIMEThrough just in time, ZARA breaks the traditional rules of the fashion supply chain, its supply chain is characterized by a reduced inventory and the continuous renewal of its collections, focusing its strategy on the consumer to respond to their needs quickly. Twice a week, at precise times, store managers place orders with the factory, and twice a week, on schedule, new garments arrive.

Uniqlo justo a tiempo

No es raro pasar por delante de una tienda Zara y hacer una doble mirada: ¿no acabas de ver eso en la pasarela? Como marca, su rapidez y capacidad de respuesta a las últimas tendencias de la moda son la clave de la ventaja competitiva de Zara. Propiedad del grupo de distribución Inditex, analizamos lo que hace que Zara sea tan rápida que el New York Times la calificó de “alucinantemente supersónica”.

Amancio Ortega fundó Zara en 1975 como un intento de entender mejor los mercados mundiales para su mercancía de moda. Desde aquella primera tienda en España, Zara se ha expandido a más de 2.200 tiendas en 96 países de todo el mundo.

En 2012, Inditex, la empresa matriz de Ortega formada por Zara y otros conceptos de venta al por menor y proveedores, declaró unas ventas totales de 20.700 millones de dólares, de los cuales Zara representó un poderoso 66%, o 13.600 millones de dólares, de ese total.

Zara produce alrededor de 450 millones de artículos al año. ¿Cómo puede ser tan eficiente con el enorme volumen que pasa por su cadena de suministro? Las entregas regulares de pequeños lotes se realizan con precisión de reloj dos veces por semana a todas sus tiendas en todo el mundo.

Zara supply chain case study pdf

Zara’s success story shows the strength of its operations. Its cross-functional operations strategy, coupled with its vertically integrated supply chain, enables controlled mass production, leading to well-managed inventories, lower markdowns, higher profitability, and short- and long-term shareholder value creation.

Retos en Supply Chain is an EAE Business School blog where we publish daily articles related to supply chain, logistics, operations, transportation, export and also other topics such as career or team management. The blog is led by the Direction of the Master in Supply Chain Management of EAE Business School, with the active participation of the experienced faculty of the Master.