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389796 zara supply management chain 1

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Introduction
Zara Clothing is one of the renowned textile organizations in the worldwide. It is part of
the large Inditex Group, one of the largest fashion distributors globally. Zara is competing with
other companies in order to obtain a wide market share, and it does this by ensuring that its
produces fashionable, affordable and quality products. The report examines the company’s
Supplier Relationship Practices (SRP) by analyzing a supplier continuum, the report explores the
kind of strategic alliance that the company is involved in. Besides, it conducts an analysis of
ABC as well as illuminating on the existing weaknesses and strengths in the management of the
relationships.
Supplier Relationship Practices (SRP) of Zara Clothing
Zara, just like any other business organization has strategic alliances with other
companies in order to increase the number of sales as well as the profit margin. The company
strives to maintain a strong relationship between suppliers and contractors, taking them as
members of the company, and the retail and designer groups’ product development personnel
and sourcing specialists (Hemphill and Suk 10).
Supplier relationship continuum analysis
Zara’s supplier continuum relationship demonstrates that the company conducts business
with a variety of companies. This explains why its products have gained wider market share than
those of its competitors. Some the company’s suppliers include Shanghai Honour Industry Co.,

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Ltd. Aohua International Trade Co., Ltd, Sproat International, and Knitted Fashions Buying
House companies (Jain and Covas 12-17). Through the Inditex Group, the company has entered
the market through franchises in different parts of the world.
Type of strategic alliance they make and companies they do business with.
Zara is in a strategic alliance with other companies in an attempt to improve its
performance. In fact, it is part of the Inditex group that is one of the largest distributors of textile
products in the world. Moreover, the company should conduct business with its competitors like
H & M and the Gap companies in order to enhance its performance (Edwards 129-130). The
company’s strategic alliances are based on outsourcing, distribution and supply and procurement
of resources and products.
Conduct an ABC analysis
The company has three types of stock; A, B and C that can be analyzed. Type A products
of the company consist of 20% are manufactured in limited numbers because they are the most
valuable goods (Hemphill and Suk 12). It also has other goods (type B) whose value is of
moderate value, and they form the company’s 50%. Lastly, there is the type C goods that account
for the companies’ 30% production and are least valuable. For competitors there are high
inventory costs since orders are placed throughout the season as well as in advance, and then
retained in allocation facilities till periodic delivery to stores. This the flexibility and proximity
effect, which it offers Zara is basic to their basic concept to react quickly to changes in customer
demand, and has offered them with a competitive advantage as compared to their peers (Edwards
129-134).
Discuss past and existing strengths and weaknesses in managing relationships

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Surname 1 Student’s Name Your Instructor’s name The Course Date Introduction Zara Clothing is one of the renowned textile organizations in the worldwide. It is part of the large Inditex Group, one of the largest fashion distributors globally. Zara is competing with other companies in order to obtain a wide market share, and it does this by ensuring that its produces fashionable, affordable and quality products. The report examines the company’s Supplier Relationship Practices (SRP) by analyzing a supplier continuum, the report explores the kind of strategic alliance that the company is involved in. Besides, it conducts an analysis of ABC as well as illuminating on the existing weaknesses and strengths in the management of the relationships. Supplier Relationship Practices (SRP) of Zara Clothing Zara, just like any other business organization has strategic alliances with other companies in order to increase the number of sales as well as the profit margin. The company strives to maintain a strong relationship between suppliers and contractors, taking them as members of the company, and the retail and designer groups’ product development personnel and sourcing specialists (Hemphill and Suk 10). Supplier relationship continuum analysis Zara’s supplier continuum relationship demonstrates that the company conducts business with a variety of companies. This explains why its products have gained wider market share than those of its competitors. Some the company’s suppli ...
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