Zara Supply Chain Case
Zara: Case questions
1. Coordination of a supply chain is always important. However, such efforts are usually initiated by certain parties. For the global apparel industry, would it be more suitable for downstream or upstream parties to be the driver of the coordination? Motivate your answer with the use of two important characteristics of the apparel industry.
2. Clearly Zara has a strong relationship with all parties within the supply chain.
a) Which of the following retailer-supplier relationships mainly characterizes the relationship between the retail stores and the distribution center?
A. Quick response
B. Continuous replenishment
C. Vendor managed inventory
Only one answer is allowed. Motivate you choice.
b) What is the impact of this type of relationship on the supply chain performance for Zara?
3. a) Is Zara using a push-based, pull-based, or push-pull based supply chain system? Motivate your answer.
b) Are other companies in the apparel industry using a push-based, pull-based, or push-pull based supply chain system? Motivate your answer.
4. a) Give five distinct advantages of insourcing over offshoring in the apparel industry.
b) Give two distinct advantages of offshoring over insourcing in the apparel industry.
5. a) Which mode(s) of sourcing is (are) used by Zara? Motivate your answer.
b) For each mode of sourcing that Zara uses (as indicated by your answer to Question 5a), explain why they have chosen this mode, and also indicate when Zara uses it and for which types of items.
c) Do other companies in the apparel industry use the same mode(s) of sourcing in a similar fashion? If not, mention the differences in the mode(s) of sourcing used by the competitors of Zara.
d) Explain how the mode(s) of sourcing used by Zara has (have) an impact on their supply chain performance in comparison to the performance of their competitors.
6. Take a closer look at the geographic location of Zara’s main production facilities and
1. Coordination of a supply chain is always important. However, such efforts are usually initiated by certain parties. For the global apparel industry, would it be more suitable for downstream or upstream parties to be the driver of the coordination? Motivate your answer with the use of two important characteristics of the apparel industry.
2. Clearly Zara has a strong relationship with all parties within the supply chain.
a) Which of the following retailer-supplier relationships mainly characterizes the relationship between the retail stores and the distribution center?
A. Quick response
B. Continuous replenishment
C. Vendor managed inventory
Only one answer is allowed. Motivate you choice.
b) What is the impact of this type of relationship on the supply chain performance for Zara?
3. a) Is Zara using a push-based, pull-based, or push-pull based supply chain system? Motivate your answer.
b) Are other companies in the apparel industry using a push-based, pull-based, or push-pull based supply chain system? Motivate your answer.
4. a) Give five distinct advantages of insourcing over offshoring in the apparel industry.
b) Give two distinct advantages of offshoring over insourcing in the apparel industry.
5. a) Which mode(s) of sourcing is (are) used by Zara? Motivate your answer.
b) For each mode of sourcing that Zara uses (as indicated by your answer to Question 5a), explain why they have chosen this mode, and also indicate when Zara uses it and for which types of items.
c) Do other companies in the apparel industry use the same mode(s) of sourcing in a similar fashion? If not, mention the differences in the mode(s) of sourcing used by the competitors of Zara.
d) Explain how the mode(s) of sourcing used by Zara has (have) an impact on their supply chain performance in comparison to the performance of their competitors.
6. Take a closer look at the geographic location of Zara’s main production facilities and