ZARA SUPPLY CHAIN FINAL ASSIGNMENT

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION 🕯✡🕮🕮✡🕯 COURSE: Supply Chain Management FINAL REPORT – GROUP TOKTOK Supply Chain Management Supply chain situation at Zara INSTRUCTOR: Ph.D Ho Thi Hong Xuyen AUTHORS: Student ID Pham Thuy Hien 19124046 Nguyen The Trung 19124073 Ha Thi Thu Huyen 20124185 Nguyen Thi Anh Tuyet 19124041 Nguyen Hoang Nhat Quyen 19124063 Ho Chi Minh City, May 27th, 2022 HCMC UNIVERSITY OF TECHNOLOGY & EDUCATION FACULTY OF ECONOMICS MAJOR: Industrial Management - YEAR OF ADMISSION: 2022 Group Toktok - Class: SCMA430706E_21_2_01CLC Topic: Supply Chain Management - Supply chain situation at Zara MEMBER ID DEGREE FINISHING Pham Thuy Hien 19124046 100% Nguyen The Trung 19124073 100% Ha Thi Thu Huyen 20124185 100% Nguyen Thi Anh Tuyet 19124041 100% Nguyen Hoang Nhat Quyen 19124063 100% LECTURER COMMENTS ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… HCMC, May 27th, 2022 Lecturer's signature Ho Thi Hong Xuyen TABLE OF CONTENTS CHAPTER 1: OVERVIEW OF THE STUDY 1.1 Reasons for choosing the topic 1.2 Research objectives 1.3 Research methods 1.4 Significance of the study 1.5 Structure of the report CHAPTER 2: LITERATURE REVIEW 2.1 Define key concepts 2.1.1 The concept of supply chain 2.1.2 The concept of Fast Fashion 2.2 Introduction about Zara 2.3 Factors that create success for the Zara brand 2.3.1 Create new ones based on existing ones 2.3.2 Update "speedy" new trends 2.3.3 Success of Zara: variety of designs, but small quantity 2.3.4 Cheap price but good quality 2.3.5 Don't spend money on advertising, but spend money on standing next to big brands 2.4 Success of Zara and the Supply Chain CHAPTER 3: THE REALITY OF ZARA’S SUPPLY CHAIN 3.1 Zara’s Supply chain model 3.1.1 Design and Order Administration 3.1.2 Sourcing and Manufacturing 3.1.3 Supplier 3.1.4 Distribution center 10 3.1.5 Retailing 11 3.1.6 Merchandising 12 3.1.7 Store Operations 12 3.2 Zara’s supply chain strengths and weakness 13 3.3 Solution for a fast fashion model - How can Zara forecast and respond well to customer needs? 16 3.4 Compare the supply chain model between ZARA and other traditional retailers in the industry 17 3.4.1 Activity 17 3.4.2 Ways to reduce costs 18 3.4.3 Strategy 19 3.5 ZARA supply chain before, during, and after COVID - 19 and solutions given to deal with covid-19 19 CHAPTER 4: SOLUTION AND RECOMMEND SUPPLY CHAIN FOR ZARA 21 4.1 Solution 21 4.2 Recomment New Supply chain 21 4.3 Conclusion : 22 APPENDIX – TEAM OF TASK IN THE US GROUP 24 REFERENCE 25 TABLE OF CONTENTS IMAGES Figure 1: Zara's main product line Figure 2: Zara's supply chain Figure 3: Zara Supply Process in full Figure 4: Zara's Supplier 10 Figure 5: Zara's Distribution System 10 Figure 6: Basic logistic flow of Zara 11 Figure 7: Zara’s new supply chain model 22 CHAPTER 1: OVERVIEW OF THE STUDY 1.1 Reasons for choosing the topic The phrase "supply chain" is related with the import and export sector, and it is also known as "logistics" globally For commercial businesses, particularly industrial enterprises, the supply chain is crucial Furthermore, units in the forwarding, freight forwarding, and supply chain activities assist in the timely delivery of goods to target customers and consumers The success of supply chain management operations has a significant impact on the prompt, accurate, and timely supply and distribution of items It can be observed that the supply chain is essential and necessary for any organization, particularly manufacturing businesses, such as Zara, a globally recognized apparel brand Therefore, this topic aims to analyze, evaluate and make comments on "The current situation of Zara's supply chain" 1.2 Research objectives Objective overview: Analyze, evaluate and make comments on "The current state of Zara's supply chain" Specific goals: Understanding Zara's supply chain model, seeing strengths and weaknesses; comparing the difference between Zara and its competitors in the supply chain model Specifically, it belongs to the fashion segment; How does Zara's supply chain model for the periods before, during, and after the pandemic 1.3 Research methods With this topic, the essay is used to collect data to come up with the most optimal solution By using available information from different sources, thereby analyzing, evaluating, building solutions and commenting on problems related to the topic's objectives 1.4 Significance of the study See the importance of the supply chain in the business model of a business Impact of the Covid 19 pandemic on business activities in general and the Zara supply chain model in particular Methods to improve the existing weaknesses in the operation of the Zara supply chain, helping to have better innovations and improvements with the supply chain 1.5 Structure of the report Chapter 1: Overview of the study Chapter 2: Literature review Chapter 3: The reality of Zara's supply chain Chapter 4: Solutions and Recommendations For New supply chain CHAPTER 2: LITERATURE REVIEW 2.1 Define key concepts 2.1.1 The concept of supply chain A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from a supplier or producer to a consumer Supply chain management is an integrated function responsible for connecting key business functions and business processes within an organization into a cohesive and robust business model Supply chains span a wide range of different industries and sectors; there are also many differences in the definition of supply chains due to the specifics of each industry and sector 2.1.2 The concept of Fast Fashion Fast fashion is a term used to describe a business model in the apparel industry that replicates current runway trends and high-quality, mass-produced designs at a fraction of the cost Low cost and get them to retail stores quickly when demand is greatest 2.2 Introduction about Zara Zara is a Spanish clothing and accessories brand Headquartered in Arteixo, Galicia Founded in 1975 by Amancio Ortega and Rosalia Mera Zara is the main brand of the Inditex Group - the world's largest fashion retailer The fashion group also includes brands such as Massimo Dutti, Pull and Bear, Bershka, Stradivarius, Oysho, Zara Home, and Uterqüe 2.3 Factors that create success for the Zara brand 2.3.1 Create new ones based on existing ones Many people will say that Zara's products are "fake goods" because Zara's designs always have the appearance of a famous brand But then Zara was still popular and still sold out Because Zara has the ability to absorb, listen to customers, and always create very quickly based on what other brands have done Zara doesn't spend money to hire famous designers, but spends its time collecting feedback from buyers around the world from other brands, then refining and combining them with Zara's own designs Therefore, in Zara's designs, one can see a delicate blend of many fashion brands in the world: there is the dusty look of Gap, the luxury of Prada, or a bit of sophistication with a royal sound Gucci's house… 2.3.2 Update "speedy" new trends Of course, in fashion, trends are the most important thing The team of 300 designers at Zara is always busy, and they create "quickly fast" to come up with new designs in lightning time that makes competitors bow their heads in awe If other brands take months or even years to launch new products, Zara only takes about to weeks to so 2.3.3 Success of Zara: variety of designs, but small quantity Zara never massively produces a design in large quantities, but always knows how to create scarcity with its products Zara only provides a certain amount to the market that buyers "do not buy quickly will run out" This hits the customer's psyche, making the customer's buying decision process faster That's why Zara's stores are always out of stock, and no stock is left in the warehouse for more than weeks In order to compensate for the fact that only a certain number of products with the same design are released to the market, Zara always tries to create a variety of different and novel designs that are suitable for many audiences and for customers to have more choices choose more 2.3.4 Cheap price but good quality The pricing strategy that Zara offers has brought great success to this brand Many customers love Zara because the reputation of the Zara brand is on par with Gucci, Prada, etc., but its price is to times cheaper Good quality, trendy design but the cheaper price, there's no reason why consumers don't choose For Vietnamese people, with just 500,000, it is possible to own an outfit and accessories of the world-famous Zara fashion brand 2.3.5 Don't spend money on advertising, but spend money on standing next to big brands It may be hard to believe, but the truth is that Zara has no advertising budget and doesn't spend a dime on advertising its products Instead, Zara invests in standing next to popular brands - a very smart "brand upgrade" It will be difficult for you to see Zara in magazines or in the media, but it is easy to recognize that Zara's store is located next to stores of famous brands such as Gucci, Prada, etc And by customers, Customers are often price-sensitive, so instead of spending money to own a luxury item from Gucci or Prada, many people will prefer Zara because "the price is cheaper but the quality is good" 2.4 Success of Zara and the Supply Chain Is the philosophy of "fast fashion" the guideline for the supply chain operation that determines the incredible success of this "fast fashion king" from Spain? Zara's supply chain vertically integrated, highly responsive, enabling garment exports 24 hours, 365 days a year, making it possible to ship new products to stores twice a week Once products are designed, they take about 10-15 days to arrive in the store All garments are processed through the main distribution center in Spain, where new products are inspected, sorted, labeled, and distributed In most cases, garments are delivered to stores within 48 hours Zara produces more than 450 million items and releases about 12,000 new designs annually, supply chain efficiency is therefore important to ensure smooth and efficient in-store collections renewal ● How often customer insights are collected: Daily trending information is fed into a database at headquarters, then used by designers to create new lines and modify designs now available ● Standardize product information: Zara warehouses have standardized product information with consistent definitions, allowing for speedy and precise design preparation with clear production instructions Zara's output has been far greater, with around 10,000 pieces manufactured every year Zara has been able to appeal to a wider range of clients with diverse tastes because to this distinctive characteristic of the company's approach 3.1.6 Merchandising Their stores serve as a gathering place for their consumers as well as the most effective promotional campaign for the company They've opened in key cities throughout the world, bringing their fashion offering to the high street and representing the brand's authentic signature, always with an original and distinctive touch The characteristics of Zara's corporate philosophy are applied to the store architecture: design, continuous innovation, rapid response, and local adaptation to the needs of consumers and the surroundings Store development is viewed as a continuous and open process that is critical to their business and is the product of professional collaboration across several departments Each store is unique and adapts to diverse cultures and circumstances, but sharing the same set of ideas Their architectural projects occasionally include historic heritage renovations, as well as thorough rehabilitation projects in individual areas 3.1.7 Store Operations The primary purpose of Zara was to connect client demand to manufacturing and manufacturing to distribution Short manufacturing periods, lower inventory risk, and a wide range of clothing have all helped Zara create a distinct value and develop its present business strategy Zara's core principle is to maintain design, production, and distribution systems that allow the company to adapt swiftly to variations in consumer demand, even when forecasting such demand is challenging They have a quick manufacturing and distribution approach that allows them to deliver the most up-to-date styles in under three weeks This improves the frequency of client visits, which boosts revenue and adds value to their offering Zara's one-of-a-kind approach to advertising and marketing is another aspect of their business plan that contributes to their success Zara invests 0.3 percent of their overall 12 revenue on marketing and advertising As a result, Zara retains a marketing cost edge over their competition Zara employs shop style, location, and short product lifespans as marketing tools to attract customers in order to compete effectively with their counterparts Instead of depending on a small number of people, Zara's senior executives intended to tap into the expertise and decision-making abilities of all of the company's employees This trust provided them a better grasp of the general public's sense of fashion, giving them an advantage in designing the proper clothing The fashion industry is tumultuous, with fluctuating demand and customer tastes Zara created three methods to meet client requests The first step is to place an order Ordering encompasses both the renewal of current products and the fulfillment of requests for new ones, and it is the pinnacle of speed and decision-making Stores are given "tough" deadlines to restock current products in order to meet customer requests, failing which La Coruna calculates a "replenishment-only" order 3.2 Zara’s supply chain strengths and weakness What are Zara’s major strengths? ● Pioneer Advantage: Fast-fashion focuses on creating, manufacturing, and marketing clothing as soon as a trend is identified The procedure takes months in traditional fashion; Zara completes it in three weeks Zara has the most advanced supply chain strategy and management methods as a pioneer ● Stores: Zara has outlets in 96 of the 202 markets where it sells ZARA has the top fashion boutiques in the world, double Nike's is 2249 locations, followed by Nike, which has the second highest number of retail locations ● Supply Chain: Twice a week, ZARA will update the collections online in stores ZARA has up to 10 logistics centers, delivering goods in 48 hours to any region in the world Inditex also has an in-house software development team that's working to extend the company's order fulfillment speed ● Design Team: Inditex employs 700 educated designers who turn customers' aspirations into designs The product design team creates 50,000 works per year 13 And it only takes them weeks to bring from the design at the drawing board to the sales shelf ● Switch to Online: Inditex plans to spend $3 billion to spice up its online sales the cash will come in creating a fun online shopping experience and integrating the present physical infrastructure By 2022, the corporation wants to earn / of its income from online sales Mastering the fast fashion industry is the reason why Zara is so successful today But "fast fashion" is also considered a knife because the environment and plagiarism are the deep concerns of today's society Our team will continue to cover this issue in the next section - "ZARA's weaknesses" The next strength that Zara can establish a versatile Supply Chain lies within the following unique approaches to provide chain success: ● Procurement method: Zara's Purchasing team is based on the number of raw materials needed to form the garment, but they don't work on the amount of finished clothing A good example of how sustainability is improved while reducing costs because this avoids waste because they will be able to reuse the material but also should not resell it if a part of the garment is not of the expected quality ● Extensive collaboration: Supplier ties are crucial, as suppliers are adjacent to Zara's factories and collaborate closely, allowing Zara to place orders on a daily basis ● Production Feedback: The shop manager provides consumer input to market specialists on a daily basis, who subsequently pass the information on to the design and manufacturing teams This rapid feedback loop enables a quick and flexible market reaction ● Local production: Zara has a unique strategy in comparison to its competitors They opted to produce their products in Galicia for things with more unstable designs rather of outsourcing the full manufacturing to Asia or Eastern Europe While lowercost production may be found in other locations, the benefits of a faster time to market, cheaper transportation costs, and less susceptibility to shifting tariffs and politics outweigh the disadvantages one of the variables When compared to more 14 wide, global supply networks, this minimizes total supply risk by focusing on a smaller pool of hazards This also contributes to a reduction in overall carbon footprint by reducing transportation ● Backup capacity: Zara intentionally idles up to 85% of its manufacturing in order to respond more quickly to fluctuations in global demand Another intriguing technique differs significantly from rivals' attempts to maximize utilization ● Demand forecasting: Zara has very effective inventory management algorithms in place that allow them to determine exactly how many things are required for each shop Twice a week, they send out extremely little portions As a consequence, there's a sense of scarcity, and very few goods go unsold If the test fails, there's plenty of time (due to their extremely responsive Supply Chain) to try out new models Zara is able to discover the proper goods practically every time as a result of this What are some of Zara’s weaknesses? What sets Zara apart from other fashion houses is Zara's commitment to revising its collection every two weeks It is because of that dedication that has helped Zara get to the top of the business However, the advantage goes hand in hand with the cost And here is the additional information: ● Fast-Fashion: Surprisingly, the movement to push ZARA to the top is also the source of its most serious flaw What is becoming more and more popular these days is the juxtaposition of sustainability with fast fashion and that's ZARA's problem as well ● Physical Store Dependence: The epidemic has hastened Zara's ambitions to cut back the amount of physical stores Zara was ready to get over an outsized reduction in sales thanks to COVID-19-related issues due to online sales Even with the rise in online sales, sales are still only 89 percent of what they were in 2019 Zara has 99 locations in the United States and Asia-Pacific Zara's 2249 outlets account for only 4.4 percent of the total However, the United States is the world's largest 15 clothing market In addition, Asia-Pacific accounts for 38% of the global clothing market Zara has a little presence in both regions Inditex works with 1520 suppliers in 7108 factories, all of which follow ethical labor practices Although Inditex deserves respect for developing a strict code of conduct, there is a significant gap in its enforcement This gap is highlighted by a story in Buzzfeed about the abuse of employees in Myanmar ● AI-Enabled Prediction: And now, Inditex is collaborating with AI and Big Data companies to develop an AI-powered system that predicts customer behavior The present system, on the other hand, is still being tested Zara will have unequaled power in forecasting and meeting client wants once such a system goes live 3.3 Solution for a fast fashion model - How can Zara forecast and respond well to customer needs? There are no product discounts that combine to maintain product production in small quantities as Zara's inherent plan, promoting customer psychology that even if buying slowly, the price is still not cheap, then if you are late, you will not be able to buy that favorite product In the case of inventory, if there are lockdown issues similar to the Covid pandemic, instead of destroying goods without reducing prices and being criticized for luxury, affecting the brand's name, they will proceed to cut the Zara label and donate money All charitable donations So far, Zara has always listened and put customers first, absorbing customer fashion trends thoroughly and quickly in order to more accurately forecast customer needs, but still through sales staff customers, store managers, then senior experts So why don't we shorten this distance through some method? Feedback link, Zara app, will directly send customer requests to the head office database At the same time, to encourage customers to download the Zara app or give feedback, there will be a gifting program of accessories according to the rules of lucky customers with Zara's own limited edition gifts 16 3.4 Compare the supply chain model between ZARA and other traditional retailers in the industry 3.4.1 Activity - Global business model, vertically integrated - Use a group of factories in Spain to the initial cost-intensive tasks such as dyeing, cutting fabrics => Take advantage of scale (making a larger quantity will cost less than making a small quantity at each stage) to minimize costs - Use different factories to perform machining operations => Increase economies of scale => Reduce costs - Use a vertical supply chain: + The process from production to product arrival in retail stores in just weeks, quick response to the needs of customer tastes and new fashions, creates a competitive advantage in the short term + Introducing new products continuously, in addition to the two main seasons of winter and summer, Zara can also introduce new products continuously throughout the year, each Zara male has up to 26 seasons It does this because its production process is short, specifically, Zara introduces 11,000 new items a year => which increases the level of customer demand => Differentiate yourself from the competition: + Zara can track its inventory at retail stores quickly through its staff, and it can accurately determine how many of its products are on store shelves without prediction in advance, as it uses vertical supply chain, and the order quantity only needs to be contacted at the beginning of the month to the factories without the need to check monthly - Internal organization: + Retail stores will place orders twice a week, managers will manage stock at the store using a handheld device, it will notify exactly what items are available and how 17 much, when which managers will place orders at factories This makes Zara no inventory => Reduce inventory costs => Reduce costs + The marketing team introduces new products to retail stores, in order to survey customers' tastes for new products => This helps Zara accurately predict customer demand for new products + Using a conveyor system to supply retail stores, orders will be delivered from day to days => New goods are always on the shelves without delay => Quick response to the demand of consumers - Do not sell on the Internet in order to reduce the cost of revenue management because the management of revenue on the Internet is very complicated, and the order of customers on the Internet is small, so it will not be possible to take advantage of the rule of law tissue at processing factories 3.4.2 Ways to reduce costs Zara has clearly understood the needs of customers as well as found out that the law of the garment industry is the constant change of customer needs Therefore, Zara has implemented a strategy to highly respond to customer changes, which is also the difference, a competitive advantage of Zara compared to other brands that use it On average, in the apparel industry, it takes more than months from design to sale Zara did this in about to weeks  This speed allows Zara to introduce new products weekly and change about 75% of its products between and weeks => So Zara products are preferred by customers over competitors As a result, Zara sells most of its products at regular prices, compared to about 50% of the competition's regular sales (the rest is on sale) Until 2002, Zara focused on all point operations in Europe and a few global distribution points in a distribution center in Spain It also has several satellite distribution centers in Latin America Deliveries from good distribution centers to stores 18 are made twice a week This allows stores to better respond to customer needs After growing, Zara built an additional distribution center in Spain While other unusual competitors often take advantage of cheap labor in Asian countries to reduce costs, Zara mainly focuses on production in Spain and Northern Portugal The goal is to quickly bring the product to the customer (because in the fashion industry, the focus time factor is very important) During the off-season, Zara produces more products for sale than its competitors Products manufactured for sale are discounted more than competitors But products produced for sale at a discount are often not of the same quality as those produced to sell at the right price This makes the profits for Zara will be greater than that of competitors 3.4.3 Strategy - Minimize costs through economies of scale - Specialization of outsourcing activities - Create differentiation by regularly launching new products and responding quickly to the needs of new tastes and fashions, through short shipping times to retailers 3.5 ZARA supply chain before, during, and after COVID - 19 and solutions given to deal with covid-19 Zara is a media company in the "fast fashion" strategy The collections of this brand catch the trend, the quality is not inferior to the branded items but the price is cheaper than the competitors In the Vietnamese market, Zara has made steady steps since its first presence in 2016 According to market survey companies, this affordable foreign brand has quickly proven itself proving its attractiveness to Vietnamese consumers when sales far outstrip fashion chains such as Blue Exchange, Ivy Moda, or Kowal However, during the COVID-19 pandemic, Zara's sales in Vietnam were also affected seriously affected However, the Covid-19 pandemic that began in early 2020 has dealt a heavy blow to many economic sectors, including the fashion retail industry To prevent the pandemic, 19 many countries have imposed a prolonged blockade that forced all shops to close Without exception, 88% of Zara's stores around the world had to temporarily close As a result, in the first quarter of the company's financial year, from February 1, 2020, to April 30, 2020, the group's revenue fell by 44% to 3.3 billion euros The group recorded a net loss of 410 million euros compared with a profit of 734 million euros in the same period of 2019 By June 2020, before the complicated development of the pandemic, Zara had to announce the closure of 1,200 of the total 7,412 stores worldwide, or about 20% The stores that were forced to close were mainly located in Europe and Asia The solution, during the blockade, Zara's online sales service worked quite well, helping the brand to reduce revenue loss somewhat The implementation of digital technology, as well as the online sales service, enhances the most important selling points of the Zara brand Larger stores will act as distribution centers for online sales The brand has ambitions to add to its revenue through online sales by 2022 In its bidding, the owner of fashion brand Zara - Inditex (ITX.MC) beat Swedish rival H&M (HMB.ST) Its efforts to recover from the coronavirus crisis, with sales in the second quarter rising above prepandemic levels "Zara's most important goal between now and 2022 is to accelerate the rollout of its 'integrated store' ", helping to meet the needs of all customers wherever they are, using any device and at any time?" Zara's transformation is also justified according to a recent report announced by Forrester and BloomReach, never before has the e-commerce platform played such an important and influential role as it does now COVID-19 has pushed digital from a supporting function to a major role for many as social distancing regulations entail a drastic change in consumer behavior Although fashion retailers have recovered from the pandemic, the spread of the new variant - Delta, this means that some restrictions have been applied again, while many industries, including the fashion industry faces supply problems due to lack of shipping containers and other bottlenecks 20 CHAPTER 4: SOLUTION AND RECOMMEND SUPPLY CHAIN FOR ZARA 4.1 Solution After recognizing the bottlenecks that Covid can cause for supply chain disruptions, let's continue to consider what are the best measures and actions that can make the supply chain more flexible more active? Short term solution Develop high-risk response and monitoring programs for supply chain disruptions for countries affected by Covid-19, and tier-1 supply exposure go down Program and prioritize supplies to get the full picture quickly and in a timely manner Ensure that all inventory is within reach and outside of affected areas and logistics centers In addition, supply chains should work with human resources and legal departments to assess financials and respond to customer requests Medium-term solution The focus now is on balancing supply and demand as well as building an estimated supply Assess opportunities and risks to diversify the company's supplier ecosystem Long term solution Once the initial effects of the crisis are mitigated, continue to anticipate future circumstances This is the time to reevaluate or develop alternative sources and diversify the value chain Address and centralize strategic and high-risk supplies relative to their original acceptability – such as alternative sources, routes, inventory, and cash reserves – when they are insufficient to minimize any major disruptions 4.2 Recomment New Suplly chain So far, Zara has always listened and put customers first, absorbing customer fashion trends thoroughly and quickly in order to more accurately forecast customer needs, but still through sales staff customers, store managers, and so on than senior experts So why don't we shorten this distance through some method? Feedback link, Zara app, and so on will 21 directly send customer requests to the head office database, improving the speed at which information from customers is received faster Figure 7: Zara’s new supply chain model 4.3 Conclusion : Many companies want their supply chain to have a primary goal of reducing costs As for Zara, the supply chain must operate at maximum speed, thereby increasing revenue to offset labor and transportation costs and at the same time ensure customer satisfaction 22 The success of Zara so far has always depended on the group's business philosophy and unique way of operating the supply chain And the "fast fashion" philosophy has turned Zara from a fashion retailer to a case study of modern business 23 APPENDIX – TEAM OF TASK IN THE US GROUP Contents to be done Students perform CHAPTER 1.1 Reasons for choosing the topic Pham Thuy Hien 1.2 Research objective Pham Thuy Hien 1.3 Research methods Ha Thi Thu Huyen 1.4 Significance of the study Nguyen Thi Anh Tuyet 1.5 Structure of the report Nguyen Thi Anh Tuyet CHAPTER 2.1 Define key concepts Pham Thuy Hien 2.2 Introduction about Zara Nguyen The Trung 2.3 Factors that create success for the Zara brand Nguyen The Trung Ha Thi Thu Huyen 2.4 Success of Zara and the Supply Chain Nguyen Thi Anh Tuyet Nguyen Hoang Nhat Quyen CHAPTER 3.1 Zara’s Supply chain model Nguyen Hoang Nhat Quyen 3.2 Zara’s supply chain strengths and weaknesses 3.3 Solution for a fast fashion model - How can Zara Nguyen Thi Anh Tuyet Nguyen The Trung forecast and respond well to customer needs? 3.4 Compare the supply chain model between ZARA Ha Thi Thu Huyen and other traditional retailers in the industry 3.5 ZARA supply chain before, during, and after Pham Thuy Hien COVID - 19 and solutions given to deal with covid-19 CHAPTER 4.1 Solution Nguyen The Trung 4.2 Recommend New Supply chain Nguyen Hoang Nhat Quyen 4.3 Conclusion Ha Thi Thu Huyen 24 REFERENCE Informe anual Inditex 2014: http://www.inditex.com/es/investors/investors_relations/annual_report HUGAS, J La Moda Rápida de Zara (2014) (ESADE Business School Case) WELLS, J., DANSKIN, G Inditex: 2012 (2014) (Harvard Business School Case) GHEMAWAT, P., NUENO, J.L Zara: fast fashion (2006) (Harvard Business School Case) LOEB, W Zara leads in fast fashion Forbes (03/30/2015) http://www.forbes.com/sites/walterloeb/2015/03/30/zara-leads-in-fastfashion/ H&M website: collaborations (consulted on 12/5/2015) http://about.hm.com/es/About/facts-about-hm/fashion-forall/collections/collaborations.html Fashiongear.fibre2fashion, ZARA, Visual Merchandising, http://fashiongear.fibre2fashion.com/brand-story/zara/visual-merchandising.asp StudyModeResearch, Feb 8th, 2015 Published, Answers to Zara Case, https://www.studymode.com/essays/Answers-To-Zara-Case-67640239.html AMRITH SUDHAKARAN (OCT 27, 2020),PESTLE ANALYSIS, Zara SWOT Analysis 2020: Ultimate Guide 10 Vishal Patel (May 6, 2020), ivalua, Zara – a Masterclass in Supplier Relationships and Supply Chain Management, https://www.ivalua.com/blog/supply-chainmanagement-zara/ 11 Sarah Hippold (November 18, 2020), Gartner, Coronavirus: How to Secure Your Supply Chain, https://www.gartner.com/smarterwithgartner/coronavirus-how-tosecure-your-supply-chain 12 Fraiman, Nicolas, Medini Singh, Linda Arrington, and C Paris “Case: Zara.” Designing and Managing the Supply Chain Ed David Simchi-Levi, Philip Kaminsky, and Edith Simchi-Levi New York, NY: McGraw-Hill, 2002 267-279 Print 25 13 Ghemawat, Pankaj, and Jose Luis Nueno ZARA: Fast Fashion 2003 https://store.hbr.org/product/zara-fast-fashion/703497?sku=703497-PDF-ENG 14 Hansen, Suzen How Zara Grew Into the World’s Largest Fashion Retailer 2012 https://www.nytimes.com/2012/11/11/magazine/how-zara-grew-into-the-worlds-largestfashion-retailer.html?pagewanted=all&_r=1 15 Lutz, Ashley This Clothing Company Whose CEO is Richer than Warren Buffett is Blowing the Competition out of the Water 2015 https://www.businessinsider.com/zarasretail-strategy-is-winning-2015-6?r=DE&IR=T 16 Wikipedia, Zara, https://vi.wikipedia.org/wiki/Zara_(nh%C3%A0_b%C3%A1n_l%E1%BA%BB) 17 Reuters News Service (September 15, 2021), Cyprus Mail, Zara owner Inditex outshines H&M as sales top pre-pandemic levels, https://cyprusmail.com/2021/09/15/zara-owner-inditex-outshines-hm-as-sales-top-pre-pandemiclevels/ 18 Wikipedia, Fast fashion, https://en.wikipedia.org/wiki/Fast_fashion 19 Foxleylanedentalcare, Zara target market analysis, https://foxleylanedentalcare.co.uk/nmmemi/zara-target-market-analysis 26 ... CHAIN Figure 1: Zara' s main product line 3.1 Zara? ??s Supply chain model As shown below, The supply chain management of ZARA is divided into categories: Figure 2: Zara' s supply chain 3.1.1 Design... state of Zara' s supply chain" Specific goals: Understanding Zara' s supply chain model, seeing strengths and weaknesses; comparing the difference between Zara and its competitors in the supply chain. .. reality of Zara' s supply chain Chapter 4: Solutions and Recommendations For New supply chain CHAPTER 2: LITERATURE REVIEW 2.1 Define key concepts 2.1.1 The concept of supply chain A supply chain is