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Analysis of the Issues of Zara

Discuss about the Logistics Management for Productivity and Performance Management.

With the continuous change in the technology, Zara has been able to set its standards for the product improvement and the availability. The focus has been on the increase of the different promotional activities through the system of online marketing which holds a higher market share. The major strategy of Zara is involvement of adapting the different designs and the manufacturing of the items with the product distribution in stores. this will help in monitoring the sales and the customer trends with their preferences. (Ulgen et al., 2015). The operations theme of Zara is directed to the product development, manufacturing and the supply chain process. The company retail giant delivery through a controlled and integrated process. The different store managers try to take the feedback from the customers about the shop and their shopping so that they can improve according to the feedback.

There have been issues related to the marketing strategy of the communication and technology. The issues are related to the qualifying illiberal democracy where Zara has been playing a major role in handling the product quality with innovation. (Christopher, 2016). The company has a well-planned customised marketing campaign which is set as per the current requirements. The new marketing search captures the innovation with improved quality and the value added products for the customers. (Dadzie, 2015). The adoption of the technology lowers the costs for the different products as per the analysis. Being a globalised firm, Inditex development strategy is the major shareholder for the different markets. This is for the largest countries with an appealing customer base. Zara is based on providing the alternative look to the fashion industry business model to maintain the production process of the in-house rather than the lower cost countries. (Meredith, 1993).

The strategy is based on the fact where Zara allows for selling more items at a higher price as this leads to the scarcity of the company. The major issue is the inventory optimisation model which relates to determining the quantity through the retail stores via shipments. (Choe et al., 2015).

Zara entails for the speedy delivery of the products with the vertical integration and the deployment of the Just-in-Time operations for the advanced processes for the success. There has been collaboration of the different products which make the market stable depending upon the strategic use of the organisational resources. (Frohlich et al., 2002).

Reasons for Success

Dell and Zara has been the corporation where one manufacturers the computers and the other apparels. The supply chain management of Dell includes the customer, Dell and the suppliers. The customers are able to place the order with the Dell procurer to handle the supplier and the parts with immediate assembly and supply. Zara has been able to design, source, manufacture the distribution to the outlets. (Errasti et al., 2015).

With Dell, there is integrated supply chain horizontally where Zara has vertical supply chain. There has been isolation from the process of production where the third party works for the finished goods and the delivery. Zara has a complete control on the different phases of the garment production. The company is able to control over the trading’s from the crafting to the manufacturing and the delivery. the total control is based on responding to the changing fashions as per the preferences of the customers. (Christopher, 2016). This is able to control the permits where Zara has an issue of delivering new designs in the short period of time. the horizontal supply chain controls the minimum responsibility and coordinate with the smaller procedures.

The suppliers of Zara have a vertical integrated supply chain management where it exercises control over the supply. The demand is met and the manufacturing is achieved successfully. Dell is able to handle the supply chain where the suppliers deliver the services with the adequate speed and the accuracy. Dell stress on the high speed delivery of the products where the suppliers 95% are directed near to the manufacturing units. (Errasti et al., 2015).

The production philosophy of Dell is to make-to-order strategy. such a strategy has been based on the shorter time san where the orders are made as per the requirement at a reasonable price. There have been competencies for the different partnership firms where the information technology is leverages like Internet and the incorporation of the value chain.

Zara has been working on introducing the different designs and the products. They are believed to launch the limited products in the limited showrooms. The major strategy is to make the product exclusion for selling the stock. (Deshmukh et al., 2016). This will help in the lowering of the quantity which equal to the limited supply and compulsion purchase. Zara does not believe in advertising as they want to maintain their brand image. The targets are the product and the expectations of the products. The products have been limited where the customers need to check on the new arrivals. (Christopher et al., 2004).

The Comparison of Dell and Zara Logistic Management

The storage with the indirect distribution channel includes the retailers, suppliers and the assimilators with the end customers. The B2B model has been for the suppliers to order the products online. The production of Zara has been shipped in the different logistics. For the overseas distributions, the inventories are carried out to a larger area which will direct that more stocks from the offers with the commercial managers who takes the orders and pass on to the logistics. (Christopher, 2016). There have been stores which are graded as per the sales with the order accuracy. This will rank to the marketing production. There has been no piling of the stocks. When the product is not being sold in the stores, then the company stops the production for that particular product.

Myer has been able to make no efforts for the segmentation of the markets with the demographic lines and the psychographic customer lines. Zara has been segmenting the market with a particular lifestyle line. (Walters, 2006). This will brand the fashion industry to offer the money. Myer “My Store” concept has been ambiguous where the target is for the hold of general market. the target group for Zara is mainly between 20-25 years of age. Myer positions has a departmental store with certain extensive products collections which uses the sales strategies of discounts to attract more customers. (Christopher, 2016).  Zara has motivated the launching of the fashion products with the temptation of promotional demonstrations and other adequate services.

The competitive advantage of Zara is that they have a fast production and the distribution strategy which allows in offering the best and the latest fashions. The company is able to produce and distribute the new fashions in the assigned time which helps in changing over the entire merchandise on the display for the time of 3 to 4 weeks. This also increase the customer visit frequency. The pricing model has been the main advantage where the price of the styles is based on its location. With the different markets, there have been different hard financial times where the access is affordable with adequate quality and the fashionable clothing. (Rivera et al., 2016). They have been able to ensure the product development, strategic partnership and the advertising with marketing. The entire setup leads to the sustainability of the product and the profitability of the company. (Mangan et al., 2008).

Considering the Just-in-time policy, the monitoring of the inventory patterns with the involvement of holding costs, production times and the reduced defects. This will lead to the proper manufacturing of the units with the lean thinking across the supply chain management with operations of business. The new products of development and innovation has been able to set a strength with the suppliers. The persistent improvement and collaboration contribute to the learning of the organisation with the different customer oriented approach to establish the associated between the manufacturer and the retailer. (Fernie et al., 2015).

Comparison of Myer with Zara

The learning is based on handling the training and the cooperative ethos strategy of Zara where the brand value is important and the value chain analysis help in depicting the best brand value. H&M is able to set the highest ranked number 89 in the company list of 500. There have been different calculations of the brand value which are used through the technique of the discounted cash flow value. Zara has been able to provide the vertical integration to the company which owns different levels of the supply chain. This has been able to optimise the products locally. The centralised decision making process is based on reducing the overall supply chain management with the information centralised to allow the permeability in the different layers of the supply chain. (Christopher, 2016). The strategy is based on holding the designs, sourcing, manufacturing, distribution process and the retailing for the different factors of success, which includes the short cycle time, small batches per product with the extensive variety of the products for different seasons and heavy information investments. The company has a centralised logistics where it focusses on the order fulfilment to stores. (Fernie et al., 2014). Zara outlet is able to send the orders based on the specific days and the timings. There has been involvement of the design to the procurement, production, distribution and the retail.  The solid distribution network enables the company to deliver its products to the different European stores within the time of 24 hours and to other outlets of American and Asian setup. (Pearlson et al., 2016).

The major priority of Zara has been to work on the parent group Inditex which focus on the customers with the demand centric supply chain management. Zara has been the globalised multi-national company and a biggest apparel retailer. The major formula of success for this is that it has been able to bring a speed of delivery, vertical integration and the Just-in-time deployment with the advancement of the different logistics process. The collaboration leads to the development. Zara shop managers where the products are kept and changed with new designs. (Christopher, 2016).

Considering the formula for success for Dell, it has been the best company to provide the storage at a lower inventory costs with no extra costs to be spent on the warehouses. Hence, the distribution and the success for the Dell is better since Zara has to store their garments and keep on circulating them for selling their products.

Competitive Advantage

Myer has been the company which has no better segment in the market with the demographic lines and the psychographic lines. This is based on the use of the products with the segmentation for the demographic lines and the lifestyle lines. (Christopher, 2016). The company focus on handling the different stores with no satisfactory service.

Hence, there are no similarities in the company till the time they are not able to provide a better output to the customer. If the company is able to set its brand image, then they need to work on the strategic logistic management. This focus on the supply chain management which should include the upstream and the downstream customers. The relationship is mainly to deliver and handle the best service at a lower cost. (Pearlson et al., 2016). This also works on separating the different entities between the supply chain management and the logistics. The logistics meet the different demands of the customer by supply the low costs needs. This will maintain the physical goods and the information along with providing a better end customer value. The PESTEL analysis and the Five Force model is able to determine the internal and the external environment. There has been detailed analysis to reach the top of the success with the change in the globalised economic condition.


With the conclusion, the supply chain works for the hold of the Zara’s management which is able to provide the internal value chain setup. This directs for the customer centric services with the leading speed and the customised technology, logistics, vertical integration and the economic scale development. (Choi et al., 2015). There have been key inputs which will hold the collaboration and inventive capacity with knowledge management and the educative development. The mindset of Zara has been customer centric services which help in adding the value to the customer services with the gain of competitive advantage. 


Christopher, M., 2016. Logistics & supply chain management. Pearson Higher Ed.

Ülgen, V.S. and Forslund, H., 2015. Logistics performance management in textiles supply chains: best-practice and barriers. International Journal of Productivity and Performance Management, 64(1), pp.52-75.

Dadzie, K.Q., 2015. Dynamic Transformations and Marketing Channels in African Markets. Journal of Marketing Channels, 22(2), pp.81-82.

Choi, T.M. and Cheng, T.E., 2015. Sustainable Fashion Supply Chain Management. Springer: New York, NY, USA.

Errasti, A., Rudberg, M. and Corti, D., 2015. Managing international operations: configuration of production network for SMEs. Production Planning & Control, 26(9), pp.691-692.

García-Álvarez, M.T., 2015. Analysis of the effects of ICTs in knowledge management and innovation: The case of Zara Group. Computers in Human Behavior, 51, pp.994-1002.

Deshmukh, A.K. and Mohan, A., 2016. Demand Chain Management: The Marketing and Supply Chain Interface Redefined. IUP Journal of Supply Chain Management, 13(1), p.20.

Rivera, L., Gligor, D. and Sheffi, Y., 2016. The benefits of logistics clustering.International Journal of Physical Distribution & Logistics Management, 46(3), pp.242-268.

Fernie, J. and Grant, D.B., 2015. Fashion Logistics. Kogan Page.

Pearlson, K.E., Saunders, C.S. and Galletta, D.F., 2016. Managing and Using Information Systems, Binder Ready Version: A Strategic Approach. John Wiley & Sons.

Christopher, M., 2005. Logistics and supply chain management: creating value-added networks. Pearson education.

Christopher, M. and Peck, H., 1997. Managing logistics in fashion markets.The international journal of Logistics Management, 8(2), pp.63-74.

Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan Page Publishers.

Mangan, J., Lalwani, C. and Butcher, T., 2008. Global logistics and supply chain management. John Wiley & Sons.

Walters, D., 2006. Effectiveness and efficiency: the role of demand chain management. The International Journal of Logistics Management, 17(1), pp.75-94.

Christopher, M., Lowson, R. and Peck, H., 2004. Creating agile supply chains in the fashion industry. International Journal of Retail & Distribution Management, 32(8), pp.367-376.

Frohlich, M.T. and Westbrook, R., 2002. Demand chain management in manufacturing and services: web-based integration, drivers and performance.Journal of Operations Management, 20(6), pp.729-745.

Meredith, J., 1993. Theory building through conceptual methods.International Journal of Operations & Production Management, 13(5), pp.3-11.

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