Question

Zara's supply chain strategy

A) results in supply more closely matching customer demand.
B) results in longer lead times for store order fulfillment, primarily due to shipping time.
C) of purely online sales reduces the costs that they would incur with a brick and mortar store system.
D) of high volume but low cost apparel requires production well in advance of the actual selling season for each garment type.

Answer 1

Zara's supply chain strategy includes matching customer demand, longer lead times for store order fulfillment, online sales, and production in advance of the selling season.

Step-by-step explanation:

Zara's supply chain strategy involves several key components:

1. Results in supply more closely matching customer demand: Zara uses a fast-fashion model that allows them to quickly respond to changes in customer preferences and produce items that are in high demand.
2. Results in longer lead times for store order fulfillment: Zara's strategy involves shipping items from centralized distribution centers, which can result in longer lead times for stores to receive their orders.
3. The purely online sales model reduces costs: Zara has a strong online presence, which eliminates the costs associated with maintaining brick and mortar stores.
4. High volume but low-cost apparel requires production well in advance: Zara produces its apparel well in advance of the selling season to ensure they have enough stock to meet customer demand.