Business Finance Homework Help. CSU Triple as In Supply Chain Management Relate to Zara Presentation
I’m working on a international trade case study and need an explanation and answer to help me learn.
After reading the paper conduct 2 slides with minimal words and visuals on how the triple A’s relate to zara.
The triple-A supply network cultivates the usage of Agility, flexibility, and Alignment as fundamental factors that have designed development in a portion of the universe’s best stockpile chains. In the case study, Zara is among the best fashion chains globally despite its limited media presence (Aslam et al., 2018). Zara excel in both marketing and supply chain. Therefore it is vital to assess its correlation with the triple-A supply chain.
Agility
Agility is an aspect embodied by large organizations creating a supply chain that is capacitated to react to dynamic changes in the market. According to Zara, their approach in achieving success involves breaking the rules and later rewriting them. The approach has enhanced their dynamism in supply chain management across their stakeholders in Spain and other parts of the world (Dubey et al., 2018). Fluctuation in demand and supply in the market can trigger failure in an organization; thus, Agility enhances quick and cost-effective responses to maintain their dominance in the market. According to the case study, Zara relates strongly to the aspect of Agility since it has a spare capacity principle. Zara maintains 85 % of its plants idle intentionally to optimize response in demand changes across the globe (“Closing Case Zara Excels in Marketing and Supply Chain Management,” 2015). Competitors embrace the opposite technique that fosters maximum utilization of the resources.
Nevertheless, to Zara, the aspect of Agility is enshrined in their business model, and thus setting aside the spare plants secures any boom season that may come along (Feizabadi et al., 2019). Moreover, Zara has been practicing a seasoned stock technique to manage demand and increase the urge to buy among the customers. The approach is centered on the principle of Agility, indicating a solid connection of the organization towards the factor (Dubey et al., 2018). Zara has created a strong connection with Agility in all corners of the supply chain pipeline. Immediately the designers post new trends. They create sketches and request fabrics. According to the case, such Agility reduces the number of items the company must sell at a discount by meeting the customer needs and taste through their Agility in the supply chain.
Adaptability
When strategies and networks change, an organization should not abide by a similar supply chain network. Structural shifts in the supply chain may occur due to political reasons, economic variations, political and social changes. For an organization to align with the aspect, it must portray the ability to identify the structural shifts log before they occur (Dubey et al., 2018). Generally, for any organization to be categorized as adaptable, investment in research on forecast technology must be high. Zara has proven its quality in the aspect based on the assertions in the case study (Feizabadi et al., 2019). Zara reaps from efficient inventory management models that forecast the items required in various stores.
Notably, the traditional approaches of making things more straightforward than they appear to make Zara an outlier in other domains and a perfectionist in its fashion industry (“Closing Case Zara Excels in Marketing and Supply Chain Management,” 2015). The local production of Zara makes it possible to monitor the functionality and commitment of its supply chain towards meeting customer demands. The close monitoring makes it possible to adapt to any local changes in the supply chain compared to outsourcing raw materials and manufacturing services that may subject the company to other geopolitical factors across the globe (Dubey et al., 2018). Thus judging from the triple-A supply chain factors, Zara correlates positively with adaptability accounting for its continued success in the industry.
Alignment
The majority of the leading organizations globally have aligned the supply chain interest with their own. In particular, the organization’s purpose statement and core values must reflect in the supply chain (Eckstein et al., 2018). In the case study, Zara has enlightened its suppliers on the quality aspect and will meet customer demands with uniqueness as the identifying factor. According to the case study, all the stakeholders in the supply chain are offered equal access to information, sales, forecast, and plans (“Closing Case Zara Excels in Marketing and Supply Chain Management,” 2015). The alignment has made it possible to operationalize the 15-day deadline compared to the other two months deadline of other players in the market. The roles and responsibilities are well aligned, and thus there is minimal conflict among the supply chain in Zara. A super responsive identity came along as an outcome of alignment following the triple-A supply chain.
