Case study on Zara Taking customer focus to new heights Supply chain
Q 1: How it maintains a strategy in SC to use only 50% of warehouse capacity Customers demand drives stores deliveries, hence no need for full stock storage. Use forecasting , through “Big Data”, to determine customer demand, to drive production and therefore to operate in decoupling point approach in the supply chain. There are process of production is lean, but the supply chain is agile. Close proximity to the stores and faster supply. Quick respond to the changing fasion market and customers demand. Their warehouses are more like distribution centres
Q 2: How it add value to customers in VC Limited stock, offers uniqueness for less money. Desirable fashion turnover is fast and drives customers to make a purchase The stores are strategically situated by another luxury stores.