Discuss about the Logistics Management for Zara.
The purpose of this study is to discuss about the supply chain and logistics management of one of the leading brand Zara. The supply chain and logistics management helps in the management of supply chain in an effective manner of all the activities. The aim and objective of this management is to maximize the value of the customers as well as to have sustainable development in the company (Miles, and Snow, 2007). It will help the company to attain competitive advantage over the competitors.
The supply chain management is an effective effort putted by the companies whose aim is to run and develop prominent supply chain. There are lots of activities that come under the parameters of supply and logistics management and they range from products, logistics, sourcing of the products, etc. it also includes information system, delivery of the goods, production process, coordination of all the activities, etc. The concept of logistic management is a very old concept. Though, there are many modifications takes place that give a real meaning to the management of supply chain and logistics (Carter, and Rogers, 2008). The logistics management of both the companies is divided according to their own strategies and policies.
The logistics management and strategies help the company to become successful organization as they help in effective and efficient management of the supply and chain management of the same. There are various types of strategies that are used in the supply chain management and logistics mansgment. The concept of logistic management is a very old concept. Though, there are many modifications takes place that give a real meaning to the management of supply chain and logistics (Carter, and Rogers, 2008). The logistics management of both the companies is divided according to their own strategies and policies. The company is trying to improve its logistics management. The company tries to maintain the high level of customer’s service by using effective management system of transportation (Richey, Roath, Whipple, and Fawcett, 2010). The company is also trying to lower the cost of the management of the transportation system.
The first thing about the company Zara is the focus to have unique styles which provide a base to the company and a wider market in which they can sell their products to the customers. The range and prices of each Zara top is similar at every store all over the world. This is the unique feature of this brand that helps to retain the customers for a longer period of time (Vargo, and Lusch, 2011). Zara has a strategy to divide it stores in to various sections like male, female, undergarments, lower garments, etc. the affordable prices offered by the company are perceived as the best thing that the other competitors failed to perceive. The stores are opened which help in clearance of strategic at the stores. The Zara do not believe in investing money on the process of advertising.
The company Zara is enjoying a reputation of famous manufacturer of fashion clothes that was launched in 1975. The technology used by this company is very upgraded and new. The point of sale of this company used the stores and gathers the information about the other brands and then makes strategies accordingly (Stock, Boyer, and Harmon, 2010). The point of sale system is one of the effective systems of this company that helps to make it as one of the leading brand in fashion (Magnan, & Lalwani, 2011).
The information protocols of this company are very high. They are completely different for the competitions. the supply chain management and logistics management is the pillar of success as it is related to the overall management of the company starting from the procurement of the ram material, to the production and at last the delivery of the final products the company Zara and its supply chain management is very effective due to which the company is enjoying a place of the most reputed brand in the fashion and clothing industry all over the world. There are other factors also that help Zara in having competitive advantage form its competition like H & M. The company has invested a huge amount in establishing effective protocols. It has spent approach .5 percent of its revenues on the protocols of the company. The protocol is of the competitors like H & M (Ponomarov, and Holcomb, 2009).
The logistics management of both the companies is divided according to their own strategies and policies. H & M has used the most physical distribution of its products. They have more than 3450 stores across the world. The Zara has more than at present 2000 stores across the world. The brand H & M try to provide featured clothes and products to their customers which help them to attract the customers. They use designer’s themes colors and clothes that are very well known designers. In this way, by purchasing these types of clothes to their customers, they provide them different experience of shopping. They try to boost their brand image at the locations where the stores of H & M (Ballou, 2007). they also try to cover the brand image by doing partnerships with the most valuable figures present in the markets and in the fashion world. It helps to offer additional advantages to the customers so that they purchase more and able to look totally different from the basic style and design of other brands.
The company Zara has a total different strategy in the supply chain and logistics management as they company believes in higher number of available items in the stores they try to maintain a good and higher number of collection in their showroom. They try to provide a wide range of products as compared to its customers. in this way, the supply chain and logistics management of Zara is much better than any other brand or H & M. at the time when the other branded stores provide and made valuable the number of products that is 2000 to 4000, Zara is a brand that provides more than 10000 pieces and items to its customers this is how the company is able to maintain a very high value of collection to its customers (Rubio, Chamorro, and Miranda, 2008). The market and customers are very much attracted with the high number of pieces made available at the stores of Zara. This is one of the unique features of Zara that helps it in managing a brand value by effective supply management. It helps to attract a broader number of customers at their stores who have unique taste of fashion (Zhang, Song, and Huang, 2009).
There are various reasons due to which the company Zara proved itself as a better brand than any other brand. There are lots of competitive advantages that Zara is enjoying in the fashion markets more than its competitors. The first thing Zara focus is to have unique styles which provide hopes of the company and a wider market in which they can sell their products to the customers. The range and prices of each Zara top is similar at every store all over the world. This is the unique feature of this brand that helps to retain the customers for a longer period of time (Vargo, and Lusch, 2011). Zara has a strategy to divide it stores in to various sections like male, female, undergarments, lower garments, etc. the affordable prices offered by the company are perceived as the best thing that the other competitors failed to perceive. The stores are opened which help in clearance of strategic at the stores. The zara do not believe in investing money on the process of advertising. They use different brand strategy to promote their goods and services by providing high quality of the products. The supply chain management and logistics of Zara are totally different for the competitors (Tummala, and Schoenherr, 2011).
They try to employ at the first position in the fashion company and want to create their own label which they have already done. The company has done their own manufacturing and clothing. they do not use website sand online selling in some countries as they believes direct selling is the best way to do shopping for clothes. The designs are very simple so that the customers can look stylist an ell as brandy at the same time (Green Zelbst, Meacham, and Bhadauria, 2012).
These are the ways by which the company is able to have competitive advantage as they have different types of items under one floor. They have perfumes, footwear’s, handbags, belts, undergarments, and many other products. It helps to provide a wide range of products (Wagner, & Bode, 2008).
The company and its competitive advantage are very unique. They can be adopted by other companies too but the only need is the effective and efficient implementation of the policies and strategies in the stores of competitors. The companies used factors of production. They have their own designers, manufacturers, and try to sell their products by their own using their own stores. This is because they want to give a unique experience to their customers (Williams, and Tokar, 2008). The company use vertical stores to sell their products. The main plant of Zara is very he that manufactures all of the clothing that is in la Corunna the retailer of this brand is also found there. The brand tries to gather the information related to the customers. They try to identify the needs of the customers so that the customers feel goo after using the brand. They do not focus on the current trend. Instead of this they focus on the comfort and simplicity which is liked by almost all the people (Zhao, Flynn, and Roth, 2007). The Zara is enjoying a high turnover of the production and sales but the article of clothing is comparitevely low.
Sustainably play a vital role in each and every company whether it is a multinational organization or a small company. Sustainability has its own relevance everywhere. It is a type of broad discipline that provides the company a long term benefit. Sustainability refers to the study of diversity and production that is done with a view that nothing can be harmed. There are basically three pillars on which the sustainability depends that is economic development, social, environmental and sustainable development. In this way, the company Zara and the other companies faced every day challenges related to the sustainability (Selviaridis, and Spring, 2007). The economic factors are related to the employability, profitability, jobs, etc. the other type of sustainability is social development. It is related to the society in which the company is doing its buisness opeartions. It is related to the laws of the government, the culture in which the company is dealing, the program of the location, ethics, festivals, etc. the third kind of sustainability is environmental protection. It is one of the most relevant sustainability that is required in each and every organization. There are various types of goals that are required to be sustainable company. The need is to have a sustainable development (Attaran, and Attaran, 2007).
Conclusion
The aim of this study is to learn about the supply chain and logistics management of one of the leading brands of fashion and clothing that is Zara. It is clearly said that the supply chain management of every company plays a very important role in the success of the company. It is a pillar of success as it is related to the overall management of the company starting from the procurement of the ram material, to the production and at last the delivery of the final products the company Zara and its supply chain management is very effective due to which the company is enjoying a place of the most reputed brand in the fashion and clothing industry all over the world. There are other factors also that help Zara in having competitive advantage form its competition like H & M. The discussion was also on the comparing between both of the famous competitive brands. The study have also discussed about the comepetitive factors that Zara have other than it competitors. They are also relevant for the competitors but they must be applied and implemented in an effective way to have best results. The sustainability plays its own role as it is related to the present and future growth of the company. As the company grown, the factors relayed to the sustainability should also require to be change. They are related to the requirement of the time and the growth and development of the brand taking place.
References
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