The design and management of supply chain plays a pivotal role in the flow of product, information and funds which is in line with the success of a supply chain. Zara’s supply chain has played an effective role right from the inception till the retailer’s shelf. Responsibility sharing takes place at each unit of supply chain.
Unlike its competitors Zara does not focus on cost reduction, it otherwise follows an outsourcing strategy for clothing in seasonal variations (Strategic Direction 2005). Supply chain decision making plays a very important role in Zara’s strategic design for which it is so successful in Europe where Zara’s local production facility is in place.
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