Zara's success for fast fashion Essay Example | Topics and Well Written Essays - 1750 words

Zaras success for fast fashion - Essay ExampleThe apparel industry is also marked by pauperization uncertainties. Managing supply chain in todays world is challenging. The complexity is enhanced when the uncertainties are high while the product life cycle is smallish and the entire process involves several partners in the manufacturing, distri exclusivelyion and logistics (Christopher & Lee, 2001). These expose a company to higher risks in the supply chain. Zara has retained direct control everywhere the entire process. It is hence interesting to evaluate Zaras formula for success in the supply chain management which allows the company to design and distribute a garment in the market in just fifteen days.The global textile and apparel industry accounts for ten percent of worlds fabricate exports (Diaz, 2005). Globalised supply chains face intense competition and rapid technological changes. The global commodity chains can be either producer-driven as in the automobile industry or buyer-driven. In the apparel industry it is a buyer-driven commodity chain where the large retailers, branded marketers and branded manufacturers play an important exercise in setting up decentralized production networks mostly in he developing nations (Gereffi, 1999). The buyer-driven commodity chains are locally owned but globally dispersed production system and hence they derive their profits from their design, sales and marketing services. The retailer or the brand owner must catch capability to shape mass consumption via strong brand name. This became the trend in 2000 as the rationale was to cut inventory and reduce risks. Retailers concentrated on reducing the unit cost and the not the lead time. Sourcing from low-wage countries reduces the labor costs but the lead time increases (Diaz, 2005). Zaras competitors have to plan their launches months in cast aside and hence are unable to react to demand changes in the market.The upstream supply chain is dominated and influence d by technology and equipments. The upstream production