Zara Supply Chain Case Study

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Zara and Benetton are two of the most notable fashion stores in the world. Remarkable for its products and notable for its exceptional supply chain management. This report will discusses the supply chain management for Zara and also Benetton which will tackle the areas of supply chain and their contribution to how the company provides its products to its customers.

Business Background
Zara is a Spanish clothing and accessories retailer that was founded by Rosalia Mera and Amancio Ortega in 1975. It is the leading retail store of the Inditex group, which is a fashion group who owns multiple brands such as, Massimo Dutti, Uterque, Stradivarius, and Bershka and also pull and Bear. Amancio Ortega unbolted the first Zara store in a crucial street in Galicia, Spain, that he named Zorba. Even though another retail store a couple blocks away was also called Zorba, the letters for the store’s name had already been created and it was then rearranged, thus coming up with “Zara”. 1980 is when Zara had started its international expansion that began in Portugal.
By 1989, they had broken into the US market and the following year they had penetrated into the French market. Zara is a vertically integrated retailer, which controls the supply chain, design, manufacturing and distribution of all its products worldwide. Zara presently has 1,751 stores around the world. They sustain annual revenue of over $9 Billion dollars (2009).
Benetton group was created in 1965 as a company by the Benetton family in Ponzano Veneto, Italy. It was restructured as a limited liability company in 1978. The Company embraced the company name Benetton Group S.p.A. in a corporate reformation effective in December 1985. Previous to June 1986, the C...

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...o guarantee successful supply chain output. Also, because Zara produces a larger number of products compared to Benetton, it needs total control of the output.

j. Recommendations

References Benetton Group, Pearson Education, 2007

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