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    Ngô Ngọc Mai Thy
    Zara has a highly efficient supply chain and logistics system that allows it to produce and deliver new products to stores around the world up to twice as fast as its competitors like H&M. Zara designs and produces around 11,000 new products per year, compared to around 2,000 for H&M. Zara uses a just-in-time strategy to deliver goods to European stores within 24 hours and global stores within 40 hours. This rapid replenishment system allows Zara to have new inventory in stores about every 6 days on average, much faster than H&M's 52 days. Zara's superior supply chain has helped increase its total sales by 50% over the past 5 years while H&M

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    Zara has a highly efficient supply chain and logistics system that allows it to produce and deliver new products to stores around the world up to twice as fast as its competitors like H&M. Zara designs and produces around 11,000 new products per year, compared to around 2,000 for H&M. Zara uses a just-in-time strategy to deliver goods to European stores within 24 hours and global stores within 40 hours. This rapid replenishment system allows Zara to have new inventory in stores about every 6 days on average, much faster than H&M's 52 days. Zara's superior supply chain has helped increase its total sales by 50% over the past 5 years while H&M

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    Zara has a highly efficient supply chain and logistics system that allows it to produce and deliver new products to stores around the world up to twice as fast as its competitors like H&M. Zara designs and produces around 11,000 new products per year, compared to around 2,000 for H&M. Zara uses a just-in-time strategy to deliver goods to European stores within 24 hours and global stores within 40 hours. This rapid replenishment system allows Zara to have new inventory in stores about every 6 days on average, much faster than H&M's 52 days. Zara's superior supply chain has helped increase its total sales by 50% over the past 5 years while H&M

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    203 views1 page

    Poster

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    Ngô Ngọc Mai Thy
    Zara has a highly efficient supply chain and logistics system that allows it to produce and deliver new products to stores around the world up to twice as fast as its competitors like H&M. Zara designs and produces around 11,000 new products per year, compared to around 2,000 for H&M. Zara uses a just-in-time strategy to deliver goods to European stores within 24 hours and global stores within 40 hours. This rapid replenishment system allows Zara to have new inventory in stores about every 6 days on average, much faster than H&M's 52 days. Zara's superior supply chain has helped increase its total sales by 50% over the past 5 years while H&M

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    of 1

    INTRODUCTION

    1. What is Zara?

    2. The concept of a Company Value Chain

    BENCHMARK
    ZARA value chain

    COMPARE
    3. What is ZARA value chain?
    1. H&M: Logistic System (System Development)
    A. PRIMARY ACTIVITIES AND COSTS
    In this latest report, H&M has problems with a logistics system which cost 34 million euros and caused a sales
    Supply chain
    drop of 8% in effect markets.
    Operation https://www.cips.org/en-SG/supply-management/news/2018/october/problems-with-logistics-system-rollout-co
    st-hm-34m/
    Distribution
    According to the report, H&M started increasing investment in its supply chain in the first half of 2017 which
    Marketing and Sales
    was dropped in its profits and behind its main rival Zara. They suppose the new logistics systems are an
    Service
    essential part of their work to make their supply chain faster, more flexible and more efficient, however, H&M
    B. SUPPORT ACTIVITIES and COSTS has been accused of failing to act on low wages in its supply chain a workers in Bulgaria (where the new H&M
    General administration store was opened lately) earned less than 10%.

    Procurement 2. Zara: Logistics system (System Development)

    Human Resource Management The just in time strategy is highly effective. Delivery of goods to the store within Europe is done within 24

    Product research and Development hours using both trucks and shipments. While to the other American and Asian outlets are accomplish within 40
    hours. This system increased a 15% cost of revenue in 2018 compared with 2017 (
    https://www.essaytyping.com/zaras-supply-chain-logistics/)

    Zara's supply chain compared to the


    traditional industry’s supply chain

    Technology

    How much zara covered ?

    COMPARE ZARA COST vs RIVALS


    Product Research & Development

    Strong R&D and designers.

    Production: Zara : 11000 products/year >< H&M : 2000 products/year ; Inventory: Zara : 6 days >< H&M : 52 days

    COMPARE

    According to (https://www.cips.org/en-SG/supply-management/news/2018/february/hm-invest-in-technology-after-disappointing-results/) H&M had a disappointing year-end results even they had a quality in operating cost of
    technology (in analytics and intelligence to improve its retail assortment planning, supply chain and sales including cloud computing, RFID, 3D printing..) about 20 million euros, the international and domestic sales both
    decreased by 2% and gross profits was dropped by 5%.
    => Figures show that Zara's total sales have increased 50% in the last five years (until April 2017).
    => Advantage.

    Technology

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