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Logistics and Supply Chain Management - Case Study Example
This paper will start off by introducing the concept of Supply Chain Management and its importance in the world of business. It will then take a step ahead by discussing, analyzing and explaining in detail the supply chain management of Spain-based retail store, Zara as an example…
I have selected Zara as my organization because of the fact that the secret behind the success of Zara was prominently its efficient Supply Chain Management. According to Harvard Business Review, Zara has hit on a formula for supply chain success that works. By defying conventional wisdom, Zara can design and distribute a garment to market in just fifteen days. (Ferdows et. All, 2005) According to The Economist, Zara is ahead of other big stores because of its supply chain which is more responsive to customer demand. (The Economist, 2006)
It is critical for international companies to efficiently supply their products all over the world in order to be successful. Therefore, it is absolutely essential for them to have well-organized supply chains, from raw materials to work in progress and from work in progress to finished products. For this, they need to have a Supply Chain Management System which would make it all possible.
According to Birgit Dam Jespersen and Tage Skjott-Larsen in their book 'Supply Chain Management: In Theory and Practice', Supply Chain Management is the management of relations and integrated business processes across the supply chain that produces products, services and information that add value for the end customer. (Birgit Dam Jespersen and Tage Skjott-Larsen, 2005)
A supply chain may not be used to only cut costs. ...