Zara, Dell, And Myer Excel In Logistics And Supply Chain Management. #essay

Introduction to Zara

The report focuses on the business activities and operations of Zara. Zara is Spanish accessories and clothing Retailer Company which was founded in 1975 by Rosalia Mera and Amancio Ortega. It is one of the biggest apparel retailers in the world and it is the main brand of the Inditex group. The products of Zara are available at more than 2169 stores across the world. It explains that how the company is increasing its profit and revenue in today’s competitive market. Further, the paper shows a comparison between Zara, Dell and Myer logistics and supply chain management. The supply chain management plays an integral in order to determine the success and growth of the firm. It describes that how Zara takes competitive advantages in the market. Supply chain and logistics management are used by Zara to beat the competitors in the international market. In addition, it also explains the trading activities and operations of Dell and Myer.

Zara is a Spanish clothing and accessories retailer company. Further, Dell is one of the biggest technology companies in the world. It manufactures and sells various electronics products in the global market (Christopher, 2016). Dell and Zara both are the well known and reputed companies. The effective supply chain system and strategies are used by both the companies. The supply chain of Zara and Dell has been discussed below.

The supply chain system of Zara differs from other companies in the world. The company changes its clothes in every two weeks to attract more customers in the market. Further, demand forecasting and RFID technology are used by the organization. In addition, agility is an important factor of Zara supply chain system. Along with this, the business model is developed by the firm to increase the number of customers in the international market. The core market of the company is women 24-35 years old (O'Marah, 2016).

Dell uses effective and dynamic supply chain strategies in order to increase the sale and revenue of the organization. The main players of Dell include suppliers, customers, and corporation. The company is responsible to maintain ethical standards in the organization. Further, the firm uses supply chain strategies such as direct sales model, supplier integration and build to order strategies. The organization is well known and famous for the unique and dynamic supply chain management (Mangan and Lalwani, 2016).

The supply chain of Dell and Zara is quite different. Dell follows a horizontal supply chain where Zara adopts vertical chain system. It is seen that Zara is more self-sufficient and it maintains control over all the enterprises which encompasses the different stages of the production for each garment and clothes (Ross, 2015). Further, the company uses effective and unique production and distribution strategies in order to increase the revenue and profit of the company. The company maintains total control over the entire process (Blanchard, 2010). By using supply chain, Zara is able to produce new clothes in various designs in a short span of time. On the other hand, Dell uses horizontally integrated supply chain management in the organization. Dell manufacturers and sell various computer products in the market. Further, Dell manages and operates various trading activities and operation by using supply chain management (Russell, and Taylor-Iii, 2008). The company hires suppliers from the third part to supply the products in the global market. On the other hand, Zara is able to know the needs, preferences, and desires of the customers by using effective and dynamic supply chain. Further, the company can also maintain coordination with a large number of customers in the international market. Both the companies use effective and appropriate supply chain management to conduct the business activities and operation successfully (Fernie and Sparks, 2014).

Comparison of Zara, Dell, and Myer logistics and supply chain management

The vertical supply chain is adopted by Zara therefore; the company has control over its suppliers in the international market. It also helps to meet the demand of the customers in the world. On the other hand, Dell sales its products to a large number of customers in the market. It also provides various services to the customers in order to attract more customers across the world. However, there are certain risks involved in the services such as uncertainty, insecurity, shortage of raw material and goods and delay in delivery of the products. In today’s era, the firm is able to provide good quality of products and services by using supply chain system (Chu, 2016).

Zara has a large number of stores and warehouses which help the company to sell its garments and clothes effectively and efficiently. In this way, the company invests a huge amount in the stores and warehouses to supply clothes to the people in the international market.

On the other hand, Dell never invests a large amount in the stores and warehouses. The company reduces the cost of inventory by reducing the other costs such as supplier, storage, retail storage, direct delivery, and warehouse. Dell has fixed maximum 7-8 hours of inventory because inventory policies have not been adopted by the company.

Zara focuses the production policies and strategies in order to overcome the competitors. Further, the company focuses on the new fashionable and designer products to increase the number of female customers in the world. The firm makes effective and dynamic strategies to sale the garments at appropriate prices. The company does not use promotional and advertisement strategies to promote and enhance the garments products because Zara wants to create a good image in the market. The main aim of the firm is to provide attractive and unique products to the customers. It also provides an option to evaluate and check out the new garments. The garments are sold by Zara in different countries in the world. The firm fulfills the needs, requirements, and preferences of the customers. Along with this, it monitors the production strategies and policies to beat the competitors (Pickles, Plank, Staritz and Glasmeier, 2015).

On the other hand, make-to-order strategies are adopted by Dell in order to attain the goals and objectives. Under this strategy, Dell produces computer products on the demand of the customers for short duration of time. The firm produces the products as per the needs, requirements, and desires of the customers at appropriate prices. The company uses social media channels to increase the sale and revenue within the organization. It provides several types of information related to the product quality, features and size on its website. In this way, the firm is able to design customized products in the market.

Zara Supply Chain Management

The products of Zara are stored in the warehouse; they distribute the products in the showrooms and stores twice in a week. Further, the firm maintains a minimum level of inventory and stocks in stores. In addition, it also maintains logistic management in order to analyze and identify the needs and demands of the customers in the global market. The products those are not good in quality, the firm stops the production of such products. Along with this, effective and dynamic distribution strategies are used by the company to distribute the garments in the world (Mihm, 2010).

On the other hand, Dell uses various distribution channels to distribute computer products in global market. The firm also sells its product like PCs and laptop through online. Further, the B2B business model is used by the company to maximize the sale of products. Further, the organization also maintains direct contacts with clients as well as customers in the international market.

Zara changes stocks twice in a week. In this way, the customers buy new garments in every week. It also increases the demand for garments products in the market. In this way, Zara evaluates and identifies choices, preferences, and tastes of the consumers. In addition, the company collects feedback from customers to improve the services and to attract more consumers in the global market. An effective communication channel is built by the firm to maintain a reciprocal relationship with customers. It will also help to eliminate and reduce complaints and grievances of the customers (Dasilva, 2013).

On the other hand, Dell is not maintained a communication channel to deal with customers in the global market. The company is not able to collect feedback from customers due to lack of proper communication and teamwork.

Myer is department store Company which is located in Melbourne Australia. It provides a wide range of retail products to men, women and children’s across the world. The company does not divide market on the basis of demographic and behavior of the people (Dahan and Peltekoglu, 2011). On the other hand, Zara divides its market into different segments on the basis of demographic, lifestyle and behavior of the people. Zara has built a strong and dynamic image in the global market by using segmentation, targeting and positioning strategies within the organization. In today’s era, the company is becoming a global leader. The STP strategies (segmentation, targeting, positioning) are not used by Myer. The firm only focuses on the general market of the consumers. The target market of Zara includes women, young girls and children’s. On the other hand, Myer does not provide satisfactory services to the customers in the market. The company only uses discount strategies to gain the profit and revenue in the world.  Further, Zara uses supply chain and logistics management to build and develop a strong image in the international market. These strategies also help to beat the competitors in the competitive market.

Dell Supply Chain Management

Zara company uses effective and unique business model to create a good image in the market. The firm is gaining several competitive advantages with maintaining sustainability in the environment as well as organization (García-Álvarez, 2015). The firm uses innovative technologies to gain competitive advantages of the organization. Invention and product innovation is famous in the international market. Supply chain and logistics management are the power of Zara (West, Ford and Ibrahim, 2015). Along with this, the company uses customer-oriented strategies and approaches to differentiate its products from the competitors (Cowe, 2011). There are various reasons through which the firm is able to gain competitive benefits with maintaining sustainability within the organization. The reasons have been discussed below.

Zara completes its products in given time period. Therefore, it is the significant strength of Zara.

Innovation and invention are other competitive advantages for the company in order to beat the competitors in the global market( Deogratias & Harorimana, 2009).

The company uses customer-oriented approach to increase the number of customers. It is the primary competitive advantage of the firm.

Further, Zara brings new fashionable clothes and garments twice in a week. It also provides various competitive benefits to the firm (Keller, Parameswaran and Jacob, 2011).

The supply chain and logistics management of Zara are unique and dynamic than other companies such as Zara and Dell. The strategies and policies of Zara differ from other companies. Further, innovation and customized technology are used by Zara to beat the competitors in the international market. On the other hand, Dell deals with various computer products in the world and it supplies these products to the customers. Myer is not provided satisfactory services to people. Thus, it influences the success and growth of the firm. Zara provides clothes and garments by evaluating and identifying preferences, needs and requirements of the consumers in the market. Along with this, growth strategies are used by Zara to increase the sale and profit within the organization. Further, collaboration and teamwork are also maintained by the firm to resolve the queries and key issues of the consumers. The company also uses learning organization concept to increase and enhance the demand for garments and clothes. The firm also maintains sustainable human resource management within the organization. All these strategies help to differentiate its products from the competitors in the world. The management of Dell and Myer are quite differ from Zara. Now it can be said that these strategies are appropriate for other companies in order to gain success and growth within the organization (Gorrepati, 2016).

Comparison of Zara and Dell Supply Chain Management

Conclusion and Recommendation 

Supply chain and logistics management of Zara have been discussed in the report. Zara is the biggest brand of clothing, accessories, and shoes in the world. Along with this, the contrast between Zara, Dell, and Myer are shown in the report. Now it is concluded that supply chain and logistics management plays a vital role in each and every company to conduct business activities successfully. The supply chain management of Zara is unique and dynamic. It provides attractive and unique products to the customers in the global market. In today’s era, Zara is making a strong image in the minds of customers. Further, management of Zara is also effective and unique. It also explains the business activities and operations of Myer and Dell.

Although Zara is becoming successful in garment industry by using effective supply chain management however some recommendations have been given to the company to increase revenue and profit. It is recommended that Zara must use online sites to increase the number of customers in the international market. Further, the company should make effective and dynamic marketing strategies to increase the sale and revenue. Further, it must focus on the plans and policies of competitors in the market. It should focus on the advertisement and promotional strategies to attract more customers in the market.

References 

Blanchard, D., 2010. Supply chain management best practices. John Wiley & SonsChristopher, M., 2016. Logistics & supply chain management. Pearson UK.

Chu, P., 2016. Excellence in European Apparel Supply Chains: Zara (Doctoral dissertation).

Cowe., 2011.Sources of Competitive Advantage, (3rd), Essex, Pearson Education Ltd

Dahan, G.S. and Peltekoglu, F.B., 2011. The effects of Zara to the SMEs of an emerging market. Journal of Global Fashion Marketing, 2(1), pp.1-10.

Dasilva, J.P., 2013. Companies on Facebook and Twitter. Current situation and communication strategies.

Deogratias, & Harorimana., 2009. Cultural Implications of Knowledge Sharing, Management and Transfer: Identifying Competitive Advantage: Identifying Competitive Advantage, IGI Global, Pg 144

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

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.

Gorrepati, K., 2016. Zara's Agile Supply Chain Is The Source Of Its Competitive Advantage, accessed on 8th December 2016 from https://www.digitalistmag.com/digital-supply-networks/2016/03/30/zaras-agile-supply-chain-is-source-of-competitive-advantage-04083335

Keller, K.L., Parameswaran, M.G. and Jacob, I., 2011. Strategic brand management: Building, measuring, and managing brand equity. Pearson Education India.

Mangan, J. and Lalwani, C., 2016. Global logistics and supply chain management. John Wiley & Sons.

Mihm, B., 2010. Fast fashion in a flat world: Global sourcing strategies. The International Business & Economics Research Journal, 9(6), p.55.

O'Marah, K., 2016. Zara Uses Supply Chain To Win Again, accessed on 8th December 2016 from https://www.forbes.com/sites/kevinomarah/2016/03/09/zara-uses-supply-chain-to-win-again/#3032002b63ae

Pickles, J., Plank, L., Staritz, C. and Glasmeier, A., 2015. Trade policy and regionalisms in global clothing production networks.

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Russell, R.S. and Taylor-Iii, B.W., 2008. Operations management along the supply chain. John Wiley & Sons.

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