Before probing Zara’s supply chain management, first we need to understand the concept of supply chain management and the principles involved in the strategic application of supply chain management by Zara. Supply chain integrates all parties involved, directly or indirectly, in fulfilling a customer request (Chopra, Meindl: 19).
These parties include: manufacturers, suppliers, transporters, warehouses, retailers and customers themselves. For instance, Zara owns an effective information system that makes the information exchange facility available across Zara’s supply chain units (Chopra, Meindl: 33). The objective of a supply chain is to create and maximize customer value i.e. how choosy a customer is for the finished product. There are lots of factors involved in the development of an effective value chain for an organization. An integrated supply chain system can enhance the production outcome and create an unsurpassed customer value if all the units of a supply chain system work effectively in creating supply chain surplus/profitability (Chopra, Meindl: 21).
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