Unit 6 Supply and Stock
Management in Retail
Business and Fashion CH 1E
Miss A. Lekic
1. About Inditex
2. About ZARA
3. Structure of the supply chain
Corporate Social Responsibility
Policy on the use of animal-skin products LWG
Legislation on Health and Safety
Legislation on Transport
9. Solutions on saving costs
The impact of legislation
10. Methods and systems used in retail stock management
page 11 In-house receiving
Merchandise Distribution Technology
11. Key components used to manage retail storage
page 14 PQRST
Retail storage solutions
12. Security of stock
Importance of security management
1. About Inditex
Head office: A Coruña, GALICIA, Spain
Inditex is a large Spanish corporation and the world's
largest fashion group. It is made up of almost a
hundred companies dealing in activities related to
textile design, production and distribution and owns
brands like Zara, Massimo Dutti, Bershka, Oysho,
Pull and Bear, Stradivarius, Zara Home, and Uterqüe.
The purpose of this Company is:
The manufacture, marketing at any stage, importation, export and wholesale and retail of all kinds of textile raw materials, yarns, cloths, fabrics and finished apparel and home products as well as any other complementary products of the aforementioned, including those of cosmetics and leather goods.
Inditex selects the world’s best manufacturers to produce its collections. Inditex’s production chain is highly diversified, with approximately half of its manufacturing conducted in near-source areas and in Europe, which gives the company unmatched swiftness and flexibility to address changing trends.
Inditex participated during the 2011 financial year in the United Nations Global Compact Supply Chain Sustainability Advisory Group, with the aim of pooling best practices in the sustainable management of the supply chains has made it possible for the group to advance by sharing and applying the best practices in sustainability at the world level in the matter of suppliers.
2. About ZARA
Amancio Ortega began making clothes in a
rented Garage in 1963. Now Zara's parent,
Inditex, a listed Company where Mr. Ortega
still 59% owns, has more than 5,000 stores in 77 countries. It is still growing apace,
especially in China, where it will open 80 more stores this year.
ZARA has one of world’s most successful logistics operations. Distribution has an increasing influence on the strategy for companies and is therefore for some companies like ZARA an important part of the marketing plan. Because ZARA’s policy is to do as little advertising as possible.
The secret of Zara's success is its speed four weeks for a new fashion idea to hit the shops and the feedback that store managers send to head office, to help it fine-tune it’s ideas. Few rivals come close to ZARA. Hennes & Mauritz (H&M) of Sweden is nearest. It is not as fast to market with new styles it takes months rather than weeks. But where it has caught on, especially in Germany, The Netherlands and Austria, its market penetration is higher. It has distribution centers dotted around Europe. Some 65% of its product is made in lower-cost countries in Asia. That means H&M’s cost base is lower than Inditex's, but it is more vulnerable to disruptions....
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