Presented By: Dua Fatima

01  About ZARA
02 What is operation Management
03 Vertically Integrated Supply Chain

content
04
05
Factors of Supply Chain Management Success
Conclusion
06 Recommendation
07 References
 INTRODUCTION
• Zara is the flagship brand of the
Spanish fashion retail giant, Inditex
•  Founded in 1975 
• The group operates approximately
1500stores 
• Inditex employs over 1,000 people in
their central product department,
owns 13 textile manufacturing
subsidiaries in Spain, owns 11 logistic
subsidiaries, 8 distribution centers,
and 6,0009 retail stores
 CEO & FOUNDER

Amancio Ortega
It all began when Ortega established a
dress-making factory, Inditex, in the year
1963. Ten years later, he started off a
small store that was named as Zorba in
La Coruna, Spain with a budget of a
meagre 30 Euros. He then changed the
name as Zara with no particular intention.
And that’s how the world’s favorite
fashion brand of today was born.
 What is operation Management

Operations management is in regard to all operations within

the organization responsible for creating goods and services that
organizations pass to their customers

• The goal of operations management is to maximize efficiency

while producing goods and services that effectively fulfill
customer needs.
• Operations decisions include decisions that are strategic in
nature, meaning that they have long-term consequences and
often involve a great deal of expense and resource commitments.
 ZARA’s Vertically Integrated Supply Chain

Design and Production- Procurement Information

Just in Time Production
Systems
ZARA has the ability ZARA has not Operations in
to maintain and participated in the fi rm
push the boundaries majority outsourcing, are technology
of fashion trends, in comparison to its enabled
and yet still adhere peers, and, therefore, making Information
to all demands 63% of their own
systems one of the
within an integrated products are self-
drivers of the quick
system of a manufactured.
response
controlled design communication
program. strategy at Zara.
 ZARA’s Vertically Integrated Supply Chain

Inventory Centralized Logistics Low marketing /

Management and Distribution advertising cost
Zara’s parent Zara has invested a Fashion retailers
company, Inditex, great deal in to its spend on average
had the lowest automated warehouses 3.5% of revenue on
which remain close in
inventory, as a distance to their
advertising their
percentage of production centers products, while
annual sales, which are responsible Zara's parent
compared with its for packing, storing, company Inditex
nearest global and assembling spends just 0-0.3%.
competitors, such individual orders for
as Gap, Benetton, their retail network.
and H&M.
Key Success Objectives for Zara’s
Performance

• Speed and quick

responsiveness to
Market
• Fashion and Variety
• Dependability
• Flexibility
 R E C O M M E N D AT I O N

DISTRIBUTION CENTER DIFFERENTIATION BETWEEN

AND RETAILERS ECOMMERCE LOCAL STORES
 
 Conclusion

‘‘
Through unique operation management
techniques that company is able to be
successful fi nancially and has maintained
status as one of the richest companies in
the fashion industry based on sales. The
company has pioneered the process of
fast fashion and through its vertical
integration is able to deliver products to
customers at a rapid pace. 
 REFERENCES

1. Baigorri, M. (2009) `Zara looks to Asia for Growth`, Business Week

Online, 27 August, p.10
2. Bonnin, A. R. (2002) `The Fashion Industry in Galicia: Understanding
the “Zara” Phenomenon`,
European Planning Studies, 10:4, p. 519-5273. Capell, K. (2008) `Zara
thrieves by breaking all the rules`, Business Week, 20 October, p. 66
4. DATAMONITOR (2008) ‘Inditex S.A.: Company Profile’, Datamonitor,
27 October 2008
 
5. DATAMONITOR (2007) ‘Womenswear in Europe: Industry Profile’,
Datamonitor, July 2007