Through a responsive supply chain, it only takes ZARA 15 days to manufacture from scratch, which is unprecedented in the fashion industry. Since designers usually spend several months in designing clothing of the next quarter, ZARA’s sales profit could be higher among rivals. Contrary to competitors in apparel industry who are scrambling to adopt outsourcing strategy, Zara keeps almost half of its production to himself. And rather than maximize production capacity like peers, ZARA deliberately keeps some extra capacity;
To unravel the secrets of ZARA’s supply chain management, there are three principles we should pay attention to.