Supply Chain Practices of Three European Apparel Companies: Zara, H&M and Benetton

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Case Details:

Case Code : OPER067
Case Length : 21 Pages
Period : 1990-2007
Organization : Tesco Plc.
Pub Date : 2008
Teaching Note : Available
Countries : UK

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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I. Zara

Zara, the flagship brand of the Spain-based Inditex Group, operated through 1,058 stores located in 69 countries across the world as of March 2008. Zara pioneered the concept of customized retailing and was able to conceptualize the garment, develop, and deliver it to the stores within two to three weeks...

Zara's design process began with spotting the trends across the world. The details of the trends in vogue were then passed on to the design and production center at Zara's headquarters in Spain. Zara had a dedicated design team in Arteixo, A Coruña, in northern Spain. Ideas for new designs or for modifications to be made in existing designs mainly came from Zara's stores...

Once the team came out with the final design, a prototype was made. It did not take much time as the fabric was already available with Zara. The teams decided on the sizes and the number of garments to be produced (Zara procured unprocessed and undyed fabric and colored the product based on the need...

The distribution of garments was carried out at Zara's 500,000 square meter distribution center in Arteixo. This center was located centrally among 14 manufacturing plants in La Coruña. Zara had its own railway track of 211 km on which the goods moved to the distribution center...

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