Supply chain finance, are taken into account, while making value chain decisions in a financial way. The strategic management analysis of zara relative to the case in developing countries. Its business model seeks to provide global consumers with the latest designs, at high quality, affordable prices and most importantly at speed. Inditexzaras superresponsive supply chain reduces bullwhip effect.
Advantages of adb scfp to partner banks postshipment post. During financial year 2018, other relevant areas of the. Gartner announces rankings of the 2019 supply chain top 25. The emergence of a new competitive landscape 15 about the research to understand the needs of buyers and suppliers in supply chain finance, mckinsey conducted research into market participants in 21 countries, interviewing 70 treasurers and cfos of multinational corporations. How companies can apply collaborative finance models in their supply chain to. As an investor in emerging markets, the international finance corporation ifc strongly believes that companies with diverse and inclusive supply chains are more in tune with their consumer base. Digitalization of zara and fast fashion technology and. On the one hand, they consist on analysing the water footprint of products and promoting a more efficient water consumption at own manufacturing centres, stores and throughout the supply chain.
This is everything you need to know about zara supply chain inventory management model and the secret behind the success of zara. Jul 15, 2015 zara, owned by the spanish inditex group, is the most successful of them all. This is where zara, with its highly responsive supply chain, excels. The concept of sustainability and competitive advantage is considered with other business models and compared with successful and unsuccessful company. In todays global competitive environment, individual companies no longer compete as autonomous entities but as supplychain networks. The health of a global supply chain isnt just measured by revenue and profit. Inditex and the sustainable development goals inditex s contribution goal 3. Whirlpool corporation the evolution of a supply chain recently, whirlpools management took a more customercentric approach to analyzing its supply chain and began benchmarking its supply chain against other companies to identify best in class practices. Inditex profits under pablo isla despite highstreet challenges inditex, the company behind household brands zara and bershka, is one of the largest fashion retailers in the world. Zaras strategic capabilities and value chain analysis. Supply chain challenges key challenges in supply chain counterfeit products significant impact on customers and ciscos revenues and brand how blockchain addresses o creates trusted record of product genealogy auditable by end customers o provides realtime updates on transfer of ownership and custody. Zara, inditexs flagship retail format, generated 66% of the companys overall sales in 2012.
Financial analysis and valuation of inditex publish your. Trends in supply chain finance small business administration. A quick glance at inditex, the spanish fast fashion empire. Discounts are offered on all invoices approved, opening up. Discounts are offered on all invoices approved, opening up the entire procurement spend, based on a sliding scale. Executive summary this report aims to study the supply chain management and logistics of fashion retailer, zara, to boost customer value. There should be an optimal combination of demand management and supply chain management to cope with market trends and to earn an advantage over competitors d.
Zara supply chain and valuecreation makrand agrawal b43 palash vermae35 sai praveend23 2. Zara supply chain management mona singh 14868329 aut university. The study is compared with the supply chain management and business strategies of zara. What it is, what its not and how it works the supply chain ecosystem is a complex one especially for multinational companies that work with suppliers all over the world. Inditex profits under pablo isla despite highstreet. Fast fashion asks that certain trends make it from readytowear fashion showcases to customers. Pdf, 20 pages world bank documents world bank group. It owns 1,558,637,990 shares in the company, which represents 50. Textura 4 now oracle 5 urica, a webbased supply chain finance platform, was awarded a commitment of.
Instead of brand versus brand or company versus company, it is increasingly suppliersbrand. Doc the strategic management analysis of zara relative. The major core topics of the fashion supply chains are supply chain coordination, the use of information systems, risk management, and the sustainability of the supply chain management choi, 2012. Veefin is an agile, flexible and integrated software solution which enables banks to create and offer sophisticated supply chain financing services to a range of corporate clients. Inditex plan 20112015 there are the objectives on the firm relating to the water and natural resources management. Supply chain finance scf is defined as the use of financial instruments, practices and technologies to optimize the management of the working capital and liquidity tied up in supply chain processes for collaborating business partners. Financial analysis and valuation of inditex a business valuation report and theoretical study ceyhun necati pehlivan masters thesis business economics investment and finance publish your bachelors or masters thesis, dissertation, term paper or essay. Advantages of adb scfp to partner banks postshipment. Supply chain finance report of the supply chain finance. Ensure healthy lives and promote wellbeing for all at all ages. Throughout the financial year, different stakeholders and organisations. Mar 23, 2016 the five major flows in supply chain on march 23, 2016 may 22, 2018 by bsaikrishna in operations, supply chain management supply chain is the management of flows.
Nov 14, 20 the cube is central command for a fashion empire built on an unconventional idea. Zaras unique business model is driven by its supply chain capabilities. The cube is central command for a fashion empire built on an unconventional idea. This includes not only the different companies taking part in the. Experts to boost trade union rights in inditex supply chain. Whirlpool corporation the evolution of a supply chain. Below are some common questions that companies ask about supply chain finance and its benefits. Annual accounts, management report and audit report of inditex group only spanish version espanol, pdf, 4. It is a popular fashion designing and manufacturing company, which has been declared as the most efficient market responding enterprise. Icc academy supply chain finance summit 2016 3 the 4th supply chain finance summit was held in singapore on march 910, 2016. Its ceo, pablo isla, is a key reason the company has flourished in difficult market conditions.
The supply chain of inditex consists of 1725 suppliers and 6295 factories, located in over 50 countries. They have the freedom to develop the styles and garments that create the right appeal and all our brands are united by the inditex way of doing business. Supply chain finance scf is a relatively new topic in logistics coyle, 2003. Purpose to analyze zaras success due to its supply chain how it correlates with valuecreation for the company.
On june 8, 2011 june 8, 2011 by bsaikrishna in finance, supply chain management. Sudden supply changes may cause wastage of resources, as done by sainsbury. Zaras supply chain management model secret behind zara. There are multiple opportunities for banks to become involved in the valuesupply chains. Supply chain challenges key challenges in supply chain counterfeit products significant impact on customers and ciscos revenues and brand how blockchain addresses o creates trusted record of product genealogy auditable by end customers o provides realtime updates on. It is the flagship business unit of a holding company called inditex corporation with headquarters in arteixo, galicia, a city in northwestern spain near where mr. The company is represented on the board of directors of inditex by ms. In order to close this gap, a conceptual framework and a mathematical model of supply chain finance is proposed. The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs. Baaijens, voor een commissie aangewezen door het college voor promoties, in het openbaar te verdedigen op woensdag 27 mei 2015 om 16. Adb has launched the program by offering guarantees to pfis on postshipment postacceptance transactions. The supply chain coordination assumes the maximization of the supply chain performance.
So if, for example, mens cardigans go out of fashion, uniqlo might simply convert them into jumpers or scarves, meaning that bottlenecks in the distribution section of its supply chain are drastically reduced. The eight inditex brands each have a unique personality and exclusive design teams who know their customers inside out. Chapter 9 global supplychain management github pages. Inditex is an example of a company that is highly effective at driving alignment between its operating model and its business model. We regularly share the complete list of our supply chain at all levels and processes with industriall, including purchasing volumes and sustainability compliance levels. Its largest brand, zara contributed to over 65% of the group revenue.
A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Jan 04, 2020 manufacturing and supply chain operations make zara unique in its industry. Analysts announced the results at the gartner supply chain executive conference, which is being held this week at the jw marriott desert ridge resort and spa in phoenix, ariz. However, zaras business model has positioned the retailer to avoid such a fate. More information on pages 294 and 295 of this annual report. Chairman and ceo of inditex, one of the worlds largest retail fashion companies, holding brands such as zara. Instead, the value of zaras brand comes from its supply chain and its ability to add value to every stage of the supply chain porter, 1985. Better links between supply chain and finance the value of supply chain initiatives should be measured in terms of impact on cash flow and market value, and on key internal financial performance metrics such as economic. Volume 8, number 22 october 2015 mckinsey on payments. Optimization of the supply chain visit of the inditex sustainability team to a turkish factory in april, 2016.
Inditexs computerized inventory system, stateoftheart production and warehousing, and a short supply chain cut leadtime to 1015 days between design and distribution, compared to the 56 month industry average. Zara is a wellrenowned name in the field of clothes and accessories, all across the world. We have included the functions of zara at each and every segment, the approach of this company towards the supply chain operations and more. The emergence of a new competitive landscape 15 about the research to understand the needs of buyers and suppliers in supplychain finance, mckinsey conducted research into market participants in 21 countries, interviewing 70 treasurers and cfos of multinational corporations. Inditex owns 20 factories for internal manufacture, applying justintime production ability to buy inputs from both europe and asia. Secondly, jit has provided uniqlos supply chain with an agility that sets it apart from most of its competitors. Link between scm and finance management brandalyzer. This is a significant point of difference to most other apparel retailers which usually commit in advance of each. Jun 08, 2011 better links between supply chain and finance the value of supply chain initiatives should be measured in terms of impact on cash flow and market value, and on key internal financial performance metrics such as economic profit eva, return on capital, return on equity, working capital, etc. We work with suppliers across 44 different countries to source most of our products 54% of the factories we work with are close to our headquarters in arteixo a coruna, spain, mainly in spain, portugal, turkey and morocco.
It gathered 170 participants from 14 countries around the world to explore a range of. Inditex understands that it must help its suppliers to improve their production conditions and support them in this process throughout their commercial relationship, with the goal of ensuring sustainability in the supply chain. Zara, owned by the spanish inditex group, is the most successful of them all. Understanding supply chain finance scf in order to understand how supply chain finance can help both buyers and suppliers, it is important to understand its underlying principles. The commitment to ensure safe and healthy work environments to promote the health and wellbeing of workers is key to inditex s supply chain management. The country that contributed the most to the fash fashion empire sales. Our sourcing of products and raw materials follows the most stringent social, environmental, and health and safety standards. Sustainable management of the supply chain inditex. In a basic understanding, supply chain finance scfis an approach to help businesses convert account receivable, stock on hand, monetary resources into cash and to improve funds accessibility by. Tmi ing guide to financial supply chain optimisation 29 ing guide to financial supply chain optimisation creating opportunities for competitive advantage section four.
Supply chain finance is scf ready to be applied in smes. We provide banks with end to end sales support in signing up new corporate and sme clients. Effective and efficient techniques of zaras supply chain model. Flora perez marcote is the legal representative of pontegadea inversiones s. Jul 11, 2014 11 july, 2014 the global framework agreement gfa with inditex, the worlds largest fashion retailer, is designed to promote decent work across the groups vast supply chain, covering over a million workers in more than 6,000 supplier factories worldwide. Communication to industriall global union of the inditex supply chain. Supply chain finance is an uncommitted credit facility typically with near investment grade corporations that rely on approved invoices to fund receivables. Zara is the flagship company of inditex, the global spanish fashion retailer inditex, 2009. Pdf supply chain management of zara mona singh academia. Supply chain finance introduction gregory cronie, head sales, payments and cash management, ing i n the last edition of tmi, we explored the elements, which comprise the. With over 25 billion in sales in 2017, the spanish fast fashion empire, inditex, which comprises eight sister brands, has been able to grow over the years thanks to a strategy of expansion of its flagship stores in exclusive location around the globe. Mr isla brings extensive retail experience, with expertise in ecommerce, innovative business and supply chain models, and environmental, social, and governance esg leadership. The new supply chain finance program scfp of the asian development bank adb works with corporates and partner financial institutions pfis to enhance sme access to working capital.
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