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ZARA (The Cube (5M Sq Ft distribution centre (450M items a yr (Less than…
ZARA
The Cube
AKA The Brain
Central command
5M Sq Ft distribution centre
450M items a yr
Less than 10% unsold
Industry average 17 - 20%
1770 stores
Delivery to store
#
Within 48 hours
86 Countries
150M items inspected and sorted
Irrespective of where produced
11 Zara owned factories
Automated monorail
#
124 miles of track
Production and distribution costs
Affordable as 85% of full production cost recovered
#
#
Production orders
Schedule
Twice weekly
Clothes arrive in store
Store orders
Typical retailer
80% placed at beginning of season
Zara 50% that far in advance
Change is part of the system
#
Concept of fast fashion
Speed
Responsiveness
Spain
Half of clothes made in Spain
Half in nearby countries
Portugal, Morocco, Turkey
Biggest market
Highly centralised
Para 2 'Supply chain is competitive advantage'
Last line '...certainty and rythm'
2013
#
China becomes second largest market
Behind France
142 Stores
Founded 1975
Amancio Ortega
World's third richest person
High tech equipment
Extra capacity
Allows for sudden production increase or change
No advertisement