Integrated and
Non Integrated
Supply Chain
Within 2 weeks of a garment hitting the catwalk, Zara is able to produce high street versions ready, in store, for the consumer to purchase.
By keeping majority of processes in house, the brand benefits from a lower cost as they're is no vendor of components gaining profit from purchases.
The brands garments will also have a speed increase to the market, making the brand stay ahead of the competition. By being first to the market, the demand for a garment will be high as it's never seen before.
An integrated supply chain means a reduction in risk for markdown and the hold on stock, They use the just in time process to ensure that they aren't holding items of stock for a long period of time. The brand knows how new to the market the trends are therefore every moment a consumer can't purchase it, another brand is developing a similar product, taking the demand of them.
. The other 75-85% will be left until the catwalks begin, so they are able to understand what premium brands are creating and analyse the publics reaction to these garments. They are able to leave the designs so late as they have such confidence within the supply chain that they are able to deliver the demand.
he season collections are always on trend, they do this by only committing to 15-25% of a seasons line, 6 months in advance.
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Zara was established due to the cancellation of a major order of fabrics. Owning large quantity of fabrics, the company, inditex, started a retail business by producing small amount for each design, but support with speedy manufacturing and replenishment model based on customers’ demand.
Zara's supply chain is integrated which means it keeps many of the production and delivery stages, in house.