Zara – Rapid Fire Fulfillment Donald R. Lile
BUS – FP3022_assessment 1_1
Fundamentals of Supply Chain Management
3/2/16

Author Note
Correspondence concerning this paper should be addressed to Donald R. Lile,
Student Capella University, 225 S. 6th St. Minneapolis, MN 55402 dlile@capellauniversity.edu Zara – Rapid Fire Fulfillment Ferdows, Lewis, and Machuca, (2004). Zara, a Spanish clothier has been successful because of the ability to sustain an environment that optimizes the entire supply chain rather than each step. This assessment will identify why the company’s supply chain strategy is successful. This research will also examine how the fast response and information infrastructure aids in this success. And finally, and analysis will be completed on how the company’s unique replenishment strategy satisfies customers. Supply Chain Strategy Ferdows, Lewis, and Machuca, (2004). In an industry where the trend is to outsource, Zara bucks the system. Instead Zara keeps almost half its production in house. Zara designs and manages its rapid-fire supply chain by reinforcing three principles: 1. Close the communication loop 2. Stick to a rhythm across the entire chain 3. Leverage your capital assets to increase supply chain flexibility Zara customers can always find new products on the shelves, but they are in limited supply. Zara designers create approximately 40,000 new designs each year. From these new designs 10,000 are selected for production. Out of these 10,000 selected items, Zara’s rapid-fire supply chain beats the other high fashion houses to the market almost every time, by delivering approximately 300,000 new stock-keeping units (SKU’s) every year. Closing the Communication Loop Ferdows, Lewis, and Machuca, (2004). “This “fast fashion” system depends on a constant