Entire garment supply chain

Design,

Purchasing

Production

Distribution

Retailing

Designers
The supply chain starts with the designers.

Design sketches by hand and then discuss them with colleagues including market specialists, planning and procurement people. The sketches are redrawn using a CAD determine whether the design can be produced and sold at a profit. Make a sample,

Production
Suppliers

50 percent of its products in its own network of 22 Spanish factories but use subcontractors for all sewing operations

The other are procured from 400 outside suppliers, 70 percent of which are in Europe and most of the rest in Asia. For its in-house production, Zara obtain 40 percent of its fabric supply from another Inditex-owed subsidiary, Comditel (Zara account for almost 90 percent of their total sales).

Over half of these fabrics are purchased undyed to allow faster response to mid-season color changes
The rest of the fabrics come from a range of 260 other suppliers

Contd..

Procurement and Production Planners The make or buy decisions are made by the procurement and production planners. The key criteria for making this decision are required levels of speed and expertise, costeffectiveness, and availability of sufficient capacity If the buyers cannot obtain desired prices, delivery terms, and quality from Zara factories, they are free to look outside.

Contd....

Subcontractors
There are some 500 sewing subcontractors in very close proximity to La Corua (in the Galicia region) and most work exclusively for Zara. Zara closely monitor their operations to ensure quality, compliance with labor laws, and above all else adherence to the production schedule.

Finished products are then placed in plastic bags with proper labels and then sent to the distribution center. Completed products procured from outside suppliers are also sent directly to the distribution center. Zara use a sampling methodology to control the incoming quality.

Distribution
Distribution Center all products pass through Zaras major distribution center in La Corua. Orders for each store are packed into separate boxes and racks (for hanging items) and are typically ready for shipment 8 hours after they have been received.

Logistics (Contractors)
Contractors using trucks bearing Zaras name pick up the merchandize at La Corua and deliver it directly to Zaras stores in Europe.
The trucks run to published schedules. Products shipped by air are flown from either airport in La La Corua or the larger airport in Santiago. Typically, stores in Europe receive their orders in 24 hours, the United Sates in 48 hours and Japan in 48 to 72 hours. Compared to similar companies in the industry, shipments at Zara are almost flawless 98.9 percent accurate with less than 0.5% shrinkage.

Retailing
Stores usually place their orders and receive shipments twice per week. The stores are on main commercial areas of cities and care over interior design take on vital importance for the company. The store is Zaras main image vehicle. Apart from its location, its window designs and interior design, customer care is one of the elements that Inditex takes most care of: its relationship with consumers Personnel receive specific training on customer care as one of the main intangible values of the store. Store personnel encourage freedom and comfort of the visitor by taking an active role in the shopping process exclusively when the customer requests this

 Zaras supply network entails a near-vertically integrated company the owns retail, products design, dyeing, and fabric cutting operations. Only sewing operations are outsourced The scheduling techniques of Zara is very efficient. Centrally Managed Inventory controlled and timely delivery of clothing to all stores across the world Reduced Design Cycle Time timely response to items that sell well and ability to quickly alter or enter new designs Strong IT System allows almost immediate communication of sales and inventory information across enterprise Logistics and Distribution clothes move within hours to their destination, efficient scheduling of shipments

Zara is an example of how a firm can design and manage its supply chain to gain competitive advantage.