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ISCM 2 about the zara case

International Supply Chain managemen (Hogeschool van Amsterdam)

StudeerSnel wordt niet gesponsord of ondersteund door een hogeschool of universiteit


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International supply chain
management
Case study
Zara

Alexandra Gabova, 500816005


Chaimae Eddabani, 500832063
Eseigbe Ejemenare, 500813462
Youssra Nait Rrami, 500824711
IB2J2
AMSIB
January 2021/year 2
Ms. M. Bagamanova

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International Supply chain management

Case study

Zara
Gabova, A. 500816005, Eddabani, C. 500832063

Eseigbe, E. 500813462, Rrami, Y.N. 500824711

IB2J2

Amsterdam, The Netherlands

January 2021

Amsterdam University of Applied Sciences

Amsterdam School of International Business

Lecturer Ms. M. Bagamanova

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Chapter 1: Introduction 3

Chapter 2: The company’s current ISCM plan 5

Chapter 3: The ISCM plan and ISCM strategy 8

Chapter 4: The ISCM strategy, added value and financial performance 11

Chapter 5: Outsourcing and The ISCM strategy 14

Chapter 6: Entering the new market and the adjusted ISCM plan 16

Chapter 7: Conclusion 19

Reference list 20

Appendix 1: Peer assessment reports 23

Appendix 2: Weekly reflections per group member 33

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Chapter 1: Introduction
1.1 Background

This report is written for the International Supply Chain Management 2 (ISCM) course at
Amsterdam University of Applied Sciences. The purpose of this case study is to analyse how Zara
performs its core activities associated with the supply chain in Argentina. In particular, inventory
management and sales and operations planning. Moreover, how Zara manages to fit in an
international supply chain strategy and how it copes with the ethical challenges.

1.2 Company’s description

Zara, one of the world's largest international fashion companies, is a Spanish apparel retailer based
in Arteixo in Galicia (Spain), and specializes in fast fashion; products include clothing, accessories,
shoes, swimwear, beauty, and perfumes (Ferdows, Machuca, Lewis, 2013). The first Zara store was
opened in 1975 in central La Coruña, Galicia, Spain by Amancio Ortega. In 1985, Amancio Ortega
set up a parent company for Zara before going for the global expansion, and in 1988, the company
started its international expansion through Porto, Portugal. Ortega initially named the store Zorba
after the classic film “Zorba the Greek” but was later changed to Zara. Zara's stores have men’s,
women's, and children's clothing and the company produces over 450 million items per year. The
company’s target is the mass market, rather than the luxury segment (Aftab, Yuanjian, Kabir, Barua,
2018). The emphasis is put on providing its customers with the latest trends with reasonable quality
and affordable price (Aftab et al., 2018).

1.3 Problem analysis

Zara’s supply chain's biggest strategy is being able to react quickly to all fashion trends and supply
customers with the latest fashion outfits as soon as in a few weeks’ time. However, the biggest
problem of Zara’s supply chain is that since Zara owns all the channels of its supply chain, it
becomes difficult to expand to a far location as it is very expensive to distribute such products
(Mhugos, 2020). Zara, on average, releases 500 new designs a week and 20,000 per year. Hence,
wastefulness is an ineradicable feature of any business model predicated on responding to trends that
quickly and due to this massive producing toxic run-off from the manufacture of viscose (Viscose is
a plant-based fibre which means it is sometimes promoted as an ethical choice for consumers). A
supposedly environmentally friendly fibre used to make clothes, is contaminating water supplies and
has been linked to increased risk of cancer. Manufacturing and Supply Chain Operations Make Zara
Unique in Its Industry because Zara buys in large quantities of few types of fabric, this way fabric
manufacturers can make quick deliveries of bulk quantities of fabric directly to Zara. ZARA does
not manufacture the complete products in its facility. Instead, it assembles elements of the product
from suppliers, gives it a finish, and sells these to the end customer. This implies that Zara and
suppliers are managed by the principles of industrial sub-contract and these relationships are affected
by factors characteristic to this kind of organization (LOGISTICS MANAGEMENT OF ZARA – A
CASE STUDY, 2015).

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1.4 Problem statement

The factories of Zara are polluting the environment as well as all vehicles that are used in
transporting goods. The fast-fashion brand produces around 840 million clothing pieces in their
factories every year, which are of bad quality and do not last for a long time. Because of this,
customers need to buy more clothes and hence more clothing needs to be produced, which is harmful
for the environment (Chua, 2019).

This report will discuss these problems and possible solutions will be provided whereby Zara can
produce more sustainable and durable clothing and reduce the pollution costs within their factories
and overall supply chain, while Zara still keeps its production flow.

1.5 Organization of report

The report consists of seven chapters and covers the issues associated with how Zara manages its
supply chain. Chapter 2 will discuss the current ISCM plan including inventory decisions and
demand forecast. In addition, it will cover to what extent S&OP is applied in the company. In
chapter 3 of this report the alignment of ISCM strategy and plan will be discussed. Chapter 4 is
going to be about added value and financial performance. The extent to which the company makes
use of outsourcing will be covered in chapter 5. Chapter 6 will be about how Zara can enter the new
market and all issues considered with it. And the last but not least, chapter 7 will conclude all the
findings of the report.

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Chapter 2: The company’s current ISCM plan
2.1 Inventory decision and demand forecast

Inventory is a crucial part in a business and the decisions about holding inventory are of great
importance. Inventory is the quantity of goods that is available on hand or in stock (Scott et al,
2018). There are multiple advantages to hold inventory. However, the strategy of Zara is to hold as
low an inventory level as possible (Ferdows, Machuca, Lewis, 2013). Hence, the main type of
inventory is cycle stock. That fact makes the company vulnerable and dependent on regular and
stable replenishment of their inventory. The order quantity varies from store to store and it is based
on the demand in the particular place. Each store manager has two deadlines during the week to
place an order for delivery. The stores in Argentina have to place their order by Tuesdays 3 p.m. and
Fridays 6 p.m. The relationship between the main office at La Coruna and the store manager is very
close and this is the important factor which keeps the process stable (Ferdows, Machuca, Lewis,
2013). What makes Zara outstanding is the fact that it can react quickly to new trends and demand
during new seasons. Compared to other companies under Inditex, Zara has the lowest seasonal stock.
While others have 80-100% inventory level ready before actual sales, Zara has only 15-20%
(Ferdows, Machuca, Lewis, 2013). The supply chain is demand driven. Furthermore, Zara does not
approve of dead stock. The items which are not sold in one store are being sent to the main office
and from there to another city, country or continent. Overall rate of the dead stock is 10% annually,
compared to 17-20% from other companies.

As for describing demand, the level is high; Zara introduces around 18000 new products annually.
Unlike other companies, the designers and the rest of the team can get the feedback directly from
stores. This is the example of how Zara implements a qualitative method of demand forecasting. It
may be not based on actual numbers, however it is of great value to understand what customers are
expecting to find in the stores. In terms of frequency, as it was mentioned before, Zara has fast
demand. Zara follows trends and adjusts their clothes when it is demanded. The company
produces fast-moving items, as the fashion is unstable and is influenced greatly by various factors.
This instability results in a very short product life cycle of 1 month or less (Aftab et al., 2018).
All products are divided into three segments: women’s, men’s and kids’. It is always the case that
50% of any store is occupied with women’s wear, as it is the most rapid and evolving fashion (Aftab
et al., 2018). All stores have personal digital assistants (PDAs), which stores all the data about orders
and sales; it communicates with the headquarters and back to manage the inventory level and
demand forecast (Aftab et al., 2018). This quantitative data is used in addition to managers’
knowledge about the stores to produce better demand forecasts and avoid oversupply (SCM Globe,
2015).

2.2 Sales and Operations planning (S&OP)

The sales and operations planning is the process of constantly realigning decisions in sales,
marketing, demand and supply planning areas with the aim to synchronize with the strategic
financial plans (Scott et al, 2018). The S&OP process contains six steps: demand planning, supply &
resource planning, financial integration, S&OP meeting and authorization & execution (Scott et al,
2018).

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One of the main objectives of S&OP is to balance demand–supply in an organization and a properly
implemented S&OP process routinely reviews customer demand and supply resources and "re-
plans" quantitatively across an agreed rolling horizon. The re-planning process focuses on changes
from the previously agreed sales and operations plan. While it helps the management team to
understand how the company achieved its current level of performance, its primary focus is on future
actions and anticipated results.

The pre-S&OP process consists of very efficient inventory management models that help the
company to determine the exact quantity of items needed for every store. The particular process is as
follows: the company identifies the average daily demand from the previous two weeks, then sets the
target number of sales and after that they ship the difference of the amount between optimal
inventory level and the current inventory level in the store (Garcia, 2008). Those shipments happen
to be in very small batches twice a week. As a result, it creates a sense of scarcity and very few items
are unsold. This eventually helps Zara to find the right product almost every time and sell most of
the items before the sales period (Ivalua Inc., 2020). Zara is highly dependent on fashion trends in
the industry as it is categorized as fast fashion. Hence, S&OP meetings take place on a regular basis,
where cross-functional teams monitor success and development of the company (Ferdows, Machuca,
Lewis, 2013). Zara’s post-S&OP process consists of ensuring that country managers can directly
report the feedback on preferences from their customers to the Zara headquarters. Through these
means, sales forecasts are pragmatic and product launches are rapid as Zara is equipped with the
information needed to be competitively agile in copying and launching products to align with
emerging trends in the fashion industry (UK Essays, 2020). Taking everything into account, this
process is a combined effort of designers, buyers and the country managers.

After implementation, the S&OP of Zara should be evaluated on a regular basis to ensure success.
There are several reasons why S&OP implementations fail. These can be described around the four
categories: people, process, strategy and performance (Scott et al, 2018). Although Zara has
managed to perfect their process and performance by demonstrating that market flexibility and lean
inventories are more important than cheap labour, an insight that just might reverse its success is
based on controlling all the steps of manufacturing clothes. However, one can see potential pitfalls in
the people and business strategy category. Zara's business strategy allows the company to sell more
items at full price due to the sense of scarcity and exclusiveness the company distinguishes,
minimizing the total cost due to the merchandise being marked down. This can also be bad for Zara,
because it relies heavily on outsourced manufacturing, even though most operations and inventory
decisions and strategies are still held, taken, and based on their headquarters in Spain. Every time an
order is placed, all items are shipped to Spain for final design adjustments and inventory stocking.

Zara is combining all the different planning horizons. From their early days of founding the
company, Zara undertook some inspirational strategic planning. Demand Planning is equally
impressive as they form a relationship with the actual store employees and gather their input to build
the demand plan. Sales & Operations Planning is driven around by decisions quickly replenishing
ranges and not leaving inventory in the same store for too long, resulting in relatively low
inventories in their chain. Zara recognizes what capacity is required first from the consumer demand
and afterwards makes sure they can deliver it. In the short term, Zara’s Daily Operations run an
efficient system with stores typically receiving their orders within 24 hours. The focus for them is
measuring time, not distance, irrespective of the global location of the point of consumer sale (Scott
et al, 2018).

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When it comes to big corporations and giant companies like Zara, the amount of data reaches
millions and billions units of planning decisions. Big Data would allow Zara to structure the great
amount of data it receives into one structured system, which in rational use will benefit planning and
analytics. The forecast accuracy in company sales, order in delivery lead-times, inventory levels and
cash-to-cash cycle times will be the ultimate result of use of Big Data. For instance, one of the
machines in the factory is out of order, the data will be collected and analysed to identify the
correlations. Then, the management will develop when the maintenance is needed to place a
schedule on those out of order. This will be different and more efficient than checking on regular
intervals. In addition to that, Big Data will be important to analyse marketing strategies by using
social media interactions. The statistics are useful to see what is more attractive for customers and
what algorithm is not working.

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Chapter 3: The ISCM plan and ISCM strategy
3.1 Corporate strategy

According to the Burnie Group (n.d.), “corporate strategy is a unique plan or framework that is long-
term in nature, designed with an objective to gain a competitive advantage over other market
participants while delivering both on customer/client and stakeholder promises”.

Zara created their own unique supply chain strategies by implementing an omnichannel experience.
With their vertically integrated strategy the company is able to quickly respond to customer demand
and change the product accordingly, as Zara’s mission statement: “Give customers what they want,
and get it to them faster than anyone else” (John, 2020). The key to business success is to implement
an effective competitive strategy (Scott et al,2018). Therefore, using integrating competitive
strategy, Zara benefits from 1 of 3 generic strategic options which is operational excellence.
Operational excellence can be summarized as quickly delivering high-quality products for a
reasonable price (Scott et al, 2018). Zara quickly responds to the demand by looking at the current
trends and produces a few quantities to be able to explore new designs and see the feedback of the
market. By contributing to the competitive strategy, Zara is able to get a competitive advantage by
offering customers stylish clothes at affordable prices.

3.2 Drivers of supply chain performance

According to Scott et al. (2018), there are four drivers of supply chain management: inventory,
information, facilities and transport. The better decisions are made about these four indicators, the
better and the more accurate the supply chain is managed. As it was discussed in Chapter 2, Zara
makes the inventory decisions regarding the level of demand. Its low inventory level is shown to be
a profitable tactic and far more successful than of other companies, even within Inditex (Ferdows,
Machuca, Lewis, 2013). Information focuses on system and technology requirements (Scott et al,
2018). Zara utilizes the latest technology at high capacity. Being spread all over 88 countries, the
company is able to maintain personal relationships with all their stores (Ferdows, Machuca, Lewis,
2013). This is possible due to never ending phone and video calls and the use of personal digital
assistants (PDAs) installed in each store for a clear picture of the inventory level. Moreover, Zara
keeps close relationships with all its facilities. There are eleven factories around the complex in
Artexico, 1600 is outsourced around the world and Zara is a preferred customer for nearly all of
them (Ferdows, Machuca, Lewis, 2013). Zara has three fully equipped distribution centres, which
together handled million pieces per day and with the potential of much more (Ferdows, Machuca,
Lewis, 2013). Zara uses only trucks and air as main transportations modes.

The main advantage of holding the inventory is to protect the company against uncertainty.
However, Zara is vulnerable at this point as the level is low. Moreover, Zara is not benefiting from
cost reduction and the production is not stabilized. But reducing inventory gives the company cash
without needing to raise extra capital. Also reduced inventory is improving the impact on the
environment. The overall usage of the four drivers make Zara

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to stand out from other companies, even within Inditex group, and be more successful in the
industry.

3.3 Five inventory strategies

The supply chain of Zara is demand driven. There are five inventory strategies: make and deliver to
stock, make to stock, assemble to order, make to order and purchase and make to order (Scott et al,
2018). Zara uses 2 out of 5 of the inventory strategies for the company. The first strategy is make
and deliver to stock. This occurs when the customer places their order and it penetrates into the
supply chain to the point where stock is held. The stock is removed and sent to the customer to
complete the order. Zara has its own website where customers can order items. After the online order
the items will be sent to their address (Zara, 2020). The second strategy Zara implements is make to
stock. This means that the stock has been moved further upstream. Every single piece of clothing
passes through one of Zara’s four distribution centers across Spain (Hanbury, 2018).

The strengths of the inventory strategies of Zara are that the company found a unique balance
between demand and supply. While on the one hand, customers will always find something new in
its stores, on the other hand, there is no overstocking. The result is that the stocks always remain
fresh and the brand creates a sense of urgency among its customers. A weakness of the inventory
strategies of Zara is that Something one can see on the shelves today, might not remain available
next week. For example, if a girl sees a nice blouse on her friend that is from Zara, and she wants to
buy it as well, there is a big chance that the item is not available anymore (Pratap, 2019). This may
force customers to go to another shop - competitor, and make a purchase there. So, the risk is
associated with losing loyalty from the customers.

3.4 Agile strategy

By analyzing the characteristics of lean and agile strategy of a company and how Zara maintains its
supply chain, it is fair to say that Zara implements agile strategy. The company’s focus is on
customers. Zara responds quickly to the stores’ demand, hence shows greater flexibility than most
other brands. The lead-time of the delivery varies between 24-72 hours dependent on the location of
the stores (Ferdows, Machuca, Lewis, 2013). In addition to that Zara uses expensive means of
transportation - air lines. Among the strengths of agile strategy is Zara’s ability to quickly react to
changes in the external environment. This strategy makes it easier to adapt the process to be able to
stay competitive. However, there are downsides of agile strategy, for example, limited resource
planning, as it may be unclear what to plan for the production process. In addition to that, it may
cause poor measurements of production and this is when Big Data is of great use to track the
success.

3.5 Postponement strategy

The postponement strategy is when a value-added service is performed as close to the customer as
possible. It can be defined as ‘delayed configuration based on the principle of common platforms
where the final assembly or customization does not take place until the final market destination
and/or customer requirement is known’. (Scott et al, 2018)

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Zara has a unique tactic, when it comes to their inventory. Zara minimizes the risk of wastage or
oversupply at their stores by minimizing their inventory at the start of each season and then they
respond quickly to upcoming fashion trends during the season. ‘’Our strategy is clear. Find out what
customers want and design and produce and distribute it quickly’’, were the words of Mr. Jesus
Echevarria, Chief Communications & Corporate Affairs Officer (Ferdows, Machuca, Lewis, 2013).
This is very beneficial to Zara’s inventory, since their money is not tied to producing finished textile
goods for their inventory. The postponement of production is actively used by Zara. First, the fabric
is bought and it has to be cut in pieces as well as dyed, because some materials are bought without
colour. Many garments are kept in a generic unprinted stage. The following actions with the
material are not happening until the order is placed. Separate contractors are employed for sewing
and the final products are then shipped to headquarters from where it goes to stores.

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Chapter 4: The ISCM strategy, added value and
financial performance
4.1

Zara’s mission statement is to “give customers what they want, and get that to them faster than
anyone else” (Tokatli, 2008). The goal is achieved by the excellence of the supply chain of Zara. The
key of Zara's business process is speed; the distance to the stores is not measured in kilometers, but
rather in hours which take the shipment to arrive at the destination. The company tries to minimize
the operational risks by sending the right product at the right time. This results in 80-85% of full
price sales and minimum discounts. This is the factor that determines Zara’s success and
differentiate from other companies, even within Inditex. Such a way of doing business keeps the
company afloat and profitable. When Zara first implemented the centralized decision making the
sales rose by 1% instantly. Gearing of Zara is currently 3.64% (WSJ, 2019). Zara is financed by
long-term debt and common shares (equity). That shows that the company is stable and investors are
willing to sponsor the company. The dividend payment rose nearly twice in 2019.

4.2

Zara’s supply chain management can be defined as demand driven, as described in the previous
paragraphs. They respond quickly to customer demand and change their product accordingly. This
way Zara protects the company against uncertainty, reducing the inventory gives the company cash
without needing to raise extra capital. Because Zara makes use of the specific supply chain
management, they manage to stand out from the other competitors.

Zara is responsible for two-third of Inditex’ total retail sales. From the years 2017-2019 Zara’s net
income had a growth of 27.3% (Investing.com, 2020). Zara manages to keep opening new stores
because their ‘strategy for entering new international markets and the rhythm of their expansion was
flexible and depended on local conditions’. This way Zara also made sure that during 2009-2011’s
financial crisis they kept expanding world-wide.

As for the balance sheets, Zara’s total assets have got a small decrease of 1.07% from the years
2017-2019. The assets exist mainly out of cash and property. The decrease in assets also has an
impact on Zara’s liabilities. As for Zara’s total liabilities have had a decrease of 7.4%. The increase
in liabilities is mainly from trades and other payables (Investing.com, 2020).

In conclusion, Zara’s supply chain management has a positive impact on their income statement
over a period of three years (2017-2019). Since then it has continued to grow.

4.3

The ROCE model means Return on Capital Employed, which shows profitability of the company.
Higher percentage figure is more attractive to investors as they would receive higher dividends.
ROCE of Zara in 2019 was 3.58%. From the formula, which is used to

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calculate ROCE, it is obvious that if the company wants to increase the ratio then it should increase
sales and reduce costs. Another option is to reduce liabilities, i.e. pay off debts and loans as well
as redefining payment terms and financing will improve the ROCE ratio. The main point of
improvement is handling inventory. With the use of Big Data it is possible to control and organize
proper inventory management which will further improve the ratio.

4.4

The company Zara could add value and improve its financial performance further by applying the
six supply chain performance levers. The performance levers are demand, supply, lead times,
information, physical quality and throughput efficiency. A supply chain manager doubles its value
when they understand both their company's financials and all the levers that affect it (Scott et al,
2018).

The supply chain starts with demand. A technique to increase demand is by having great marketing
strategies. Zara has been into little marketing and promotion of its brand. Advice for the company is
for the brand to invest more in marketing to get more sales and increase its customer base. The
company is already known world-wide, but better and more structured for further expansion
marketing will help to get higher demand. Moreover, as was mentioned in the report before, the
absence of goods in the store may cause customers to leave, hence proper control of demand is
necessary to maintain positive relationships with customers.

The second lever is supply. Zara outsourcers many of the activities to other companies. The risk
associated with those companies not being able to perform is extremely high. The disruption can
cause the overall flow of the company to stop operating, which can cause monetary loss as there will
be no shipments delivered. It is highly important to monitor all the activities of third parties to be
able to deliver what is promised to customers.

The third lever is lead-times. There is a proper connection in the supply chain in place, their flow of
raw materials and ideas is fast and has great flexibility, so their lead-times are sufficient. This is the
strong point of Zara to be able to deliver to any country in the world in under 3 days.

The fourth lever is information. The company uses IT technologies. Zara has created a system that
simplifies the communication flow and data. It has created the flow in such a way that sharing
information is easy and innovative. The headquarters are in constant communication with store
managers. The relationship between Zara and contractors and other companies are exceptional and
based on trust, for most companies Zara is the only customer.

The fifth lever is physical quality. The quality of the products of Zara is not great. It would be better
for the company if they invest more in purchasing materials of better quality for their products
(Quora, 2018). The last lever is throughput efficiency. Zara focusses much on customer service
and experience. Zara has attained global fame due to its pricing and customer service, having an
attractive design for its products. This has eventually led to more sales and thereby increases its
revenue.

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4.5

Sustainable supply chain management involves integrating environmentally friendly practices into
the whole cycle starting from product design to retaining relationships with suppliers. Zara has made
up a plan to be more sustainable and has their goals set (2019). First, they want their clothing
collections to be created out of 100% sustainable and environmentally friendly material, as well as
having no waste and reusing their energy. But how will they achieve this? They want to start with
giving their clothing a longer duration, also because they believe that fashion trends will stay longer
or come back quicker for a different season. If the quality of their clothing becomes better, this also
means people will buy less clothing that they have worn out but this could also financially help
because the people will believe in Zara’s longevity clothing and buy more items from them (Holgate,
M. 2019). As for financial benefits, banks are offering cheaper loans and programs which support
sustainable businesses (ING, 2020). It is also possible to create long-term partnerships with suppliers
and work together towards the same goals.

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Chapter 5: Outsourcing and The ISCM strategy
5.1

Outsourcing can be defined as the process of moving aspects of your own company to another
supplier (Scott et al, 2018). Many successful companies make use of outsourcing because not only it
gives the company more room to focus on the core aspects of the business but it also helps the
company in cost-saving. Zara is a global company and knows that it is more difficult to operate in a
global environment than just serve local markets. Globalisation and associated global needs is a key
driver for the current growth in outsourcing. The increasing complexity of supply chain management
is closely linked to the globalisation of business. Another main driver for the increasing number of
logistics processes being outsourced is emerging markets (Scott et al, 2018).

Reasons for Zara for making use of outsourcing are to increase their operating flexibility, reduce
fixed assets and to increase efficiency (Scott et al, 2018). Instead of completely outsourcing its
production overseas, Inditex (the owner of Zara) does not outsource manufacturing completely, only
35% of the supply chain is outsourced (Zhang, 2018). Zara combined manufacturing in Europe and
other proximity markets with suppliers from the Far East (Gestal, 2019). This allows them to take a
lot of control over the design, warehousing, distribution and logistics functions rather than relying on
outside partners. Zara retains more control over their supply chain than most retailers because it is
vertically integrated, meaning they have ownership of their supply chain. Vertically integrated supply
chains are contrasted to horizontal integrations that seek to partner with 3rd parties for various
components of the business.This strategy allows Zara to cut costs because they are not outsourcing to
multiple suppliers, much time is saved in the distribution process and many conflicts from different
channels are avoided (Team, 2016). The unique supply chain allows ZARA to control the entire
process in a more timely manner, greatly reducing shipping time and enabling quick response to
fashion and weather changes (Zhang, 2018).

Outsourcing concerns are that there can originate conflicts between different channels (Team, 2016).
Another concern can be that 3rd Party Logistics (3PL’s) have great knowledge about their own
business and how everything is operated, but it needs time for them to get to know the customer's
business. An additional risk is that once a long-term contract is signed and a commitment is made by
both parties, the 3PL’s customer mindset may diminish as its focus now moves to other clients (Scott
et al, 2018). Zara kept the outsourcing concerns in mind. That is also why they choose to mainly
take control over their process.

5.2

According to Scott et al (2018), “the tendering process is a clearly defined process for customer
selection including all key steps from scoping of outsourcing requirements, through to the final
negotiation and contract agreement”. In the tendering process of outsourcing, there are nine steps.
There is no available information about the tendering process. Hence, it can be concluded that Zara
does not use the tendering process in their

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supply chain. But they do implement two final steps from the tendering process, which is to
construct and manage ongoing relationships. It is important for the company to maintain long-term
friendly and trustworthy relationships in order to be able to set big goals.

5.3

Third-party logistics (3PL) entails when businesses outsource transportation or logistics services to
another supplier, referred to as the third-party logistics provider (Scott et al, 2018). Zara makes use
of outsourcing secondary transport to another company, this allows Zara to make use of another
company’s logistic service to provide the stores with the products. This way Zara saves money as
they do not need to provide transport capacity for all occasions which will lead to a reduction of the
fixed assets. It will also increase the company’s operating flexibility, since Zara makes use of
transport through airplanes, ships and trucks. This will allow Zara to easily make use of all three of
them. Even though Zara has handed its entire distribution and transportation process to external
contractors, they still claim to still keep a close look at the process to reduce the greenhouse gas
emissions involved (Inditex, LOGISTICS, 2020). Besides the financial gain that Zara gets through
three party logistics (3PL), they will also gain in managing the relationships with their customers.
Zara offers the fastest shipment possible, they do everything to keep up with their promised
shipment date. This way they manage to keep the customers’ expectations. Thanks to Zara’s
outsourcing distribution and transportation process, they are able to keep their costs low and manage
to realize customers’ expectations which will lead to lasting trustworthy customer-supplier
relationships.

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Chapter 6: Entering the new market and the
adjusted ISCM plan
6.1

There are three options of entering the new market that Zara has implemented in its practices. Joint
venture, own subsidiaries and franchise. For some countries, Zara is entering as a franchise in order
to get to know the market first and then buy it back, however, in case of Argentina and other South
American countries, the company entered the market as a company-owned store (Leidiger, 2017).
Zara entered the Argentenian market in 1998 (Zara, 2020). In 2014 there were 10 stores in total in
the whole country (Ferdows, Machuca, Lewis, 2013). So, Zara used direct export as an entry
strategy.

6.2

When making the consideration to start exporting to Argentina it is of great importance for the sales
and management team of Zara to take a closer look at the financial situation of the past three years.

This analysis is done in order to predict whether the company in question will be able to succeed in
the regarding district instead of going bankrupt. Regarding Zara, the financial situation is relatively
positive. The next paragraph states a short financial analysis, in order to decide whether Zara is able
to export to Argentina.

Next there are sales negotiations, in which it is often agreed upon the currency in which the payment
is to be made. The management team of Zara will now have to choose whether they will receive the
payments in euros or in Argentinian pesos. The moment the choice is concluded, and the payments
will not be received in euro, the company runs a currency risk (AL, 2010). At the moment one euro
is worth approximately 104 Argentine Peso, with the worth of the Euro gradually rising in
comparison to the Argentine Peso, the Argentine Peso is depreciating. At the moment the Argentine
Peso has an inflation of 25.7% and the euro has an inflation of just 1.5% (XE, n.d.). Therefore it
would be wise since Zara then can make use of the fluctuations, this would not only be more
profitable for Zara, but this would also reduce a part of the currency risk. As well as using an active
cash management policy, which would be very beneficial for Zara, as this lowers the cost, due to
having fewer international transactions.

As for the payment method, Zara will benefit the most from documents, since this will lower the risk
of Zara. When there is a payment neglect, the bank will fulfil the payment. (al, 2010)

6.3

All of Zara’s merchandise, from internal and external suppliers, passed through the distribution
center in Arteixo, which operated on a dual-shift basis and featured a mobile tracking system that
docked hanging garments in the appropriate barcoded area on carousels capable of handling 45,000
folded garments per hour. As orders were received

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from hand-held computers in the stores (twice a week during regular periods, and thrice weekly
during the sales season), they were checked in the 703-497 ZARA: Fast Fashion 12 distribution
center and, if a particular item was in short supply, allocation decisions were made on the basis of
historical sales levels and other considerations. Once an order had been approved, the warehouse
issued the lists that were used to organize deliveries. Since Zara is based in Spain the company
should use the customs house broker a contractor (company or person) that helps a client's goods
clear customs in a foreign country and the 3PL (third-party logistics), which would be a contractor
that performs one or more logistics functions for their client in an effort to facilitate effective and
efficient movement in the supply chain. This 3PL contractor can not be the buyer or seller of the
items being moved. Services that could be performed by a 3PL include warehousing, distribution,
packaging, containerization, transportation, product tracking, documentation.

Customs policy considerations that Zara should make when exporting to the allotted is using the
FTZ (free trade zone) method. A geographic area sanctioned by the government where items are not
under the control of customs authorities goods can be imported into a country, brought to a FTZ,
then stored, displayed, and/or manipulated before being re-exported without ever being inspected or
taxed by customs.

6.4
The ethical and environmental dilemmas related to international supply chain management that the
company Zara should consider when exporting to the allotted region are slave labor and
environmental pollution (Vivuya, 2013) (Chua, 2019). These dilemmas can be related to the areas of
the triple bottom line. The triple bottom line concept emphasises the importance of examining the
impact of business decisions on three key arenas: Environment, Economy, Society. The two areas
that are related are environment and society (Christopher, 2020).

The Spanish fashion brand Zara is outsourcing its production in Argentina to clandestine sweatshops
employing immigrants under slave-like conditions. But, as denounced by the NGO “La Alameda”
and the Human Rights Secretariat of the CGT, the country’s largest trade union confederation, the
working hours are inhuman. hidden camera recordings showing that the workers sleep in bunk beds
right next to the machines and are made to work for over 13 hours a day. Electrical cables were also
shown to be hanging precariously, creating the risk of fire. Such conditions are not exceptional in
Argentina or in other textile industries around the world (Vivuya, 2013).

Companies like Zara, Forever 21, H&M, and Boohoo make cheap, disposable clothing, yet the costs
are very high.Apparel and footwear production currently accounts for 8.1 percent of global
greenhouse gas emissions, or as much as the total climate impact of the entire European Union. Zara
alone churns out roughly 840 million garments every year for its 6,000 stores worldwide, often at
sub-poverty wages for its workers. Once-thriving rivers wrecked by wastewater effluent from
factories, have transformed into biologically dead zones replete with cancer-causing chemicals. Tiny
plastic microfibers, shed by synthetic garments during laundry, are inundating our water supply and
food chain (Chua, 2019).

6.5

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The demand of the customers in Argentina differs from the demand of the customers in all of the
other countries. Firstly, the production team of Zara has to do research in Argentina to find out
what the customers want to wear and what they want to see other wear. They have to find out how
they can form a customer relationship with the Argentinian customers. They have to find a way to
attract the customers’ attention and to stand out compared to the other already existing stores in the
country. They have to form an unique concept that will make sure that they will attract customers
and form customer relationships. Moreover, Argentina is located on the separate continent from
Europe across the ocean, and there are no major distribution centers nearby. Zara should pay
attention to the distance and associated risks with that.

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Chapter 7: Conclusion
7.1

Using external research, this paper provides information about the company Zara and the way it
handles its supply chain. The current issue is associated with environmental damage, the company
is created by such a responsive supply chain. The problem here is hence twofold: this business
model is proven to be successful and profitable while stakeholders are satisfied; on the other hand,
rapid change in trends and constant product delivery is polluting the environment. The company’s
sustainability point of view leaves much to be desired. It is high time Zara looked at every single
step of the supply chain. Beginning with material choices they make to delivery companies they
choose. They want their clothing collections to be created out of 100% sustainable and
environmentally friendly material, as well as having no waste and reusing their energy. But how will
they achieve this? They want to start with giving their clothing a longer duration, also because they
believe that fashion trends will stay longer or come back quicker for a different season. If the
quality of their clothing becomes better, this also means people will need to buy less clothing that
they have worn out. Zara is known for its fast responses to the demand, but the company could
revise this model as sometimes it is just inefficient. Demand varies greatly and difficult to predict,
however, from the environmental perspective half-empty trucks are not appealing. So, Zara could
revise its system and maybe extend the time to three weeks delivery to the stores. Zara could also
partner with companies which also practise sustainability and set goals to achieve them together.

7.2

Zara could start with a brand new campagne, which will bring the customers attention to the
environment. With a ‘green theme’, Zara could design a new clothing line that is based on today’s
environment and made with recycled clothes. The whole campagne should be about giving clothes a
second life. Customers can bring back their old worn Zara clothes to the store, in exchange for a
discount that can only be used in the store. In the long term the benefits of the action will improve,
since all the clothes in the stores will eventually be made of recycled clothes. Zara indirectly
stimulates their customers to wear recycled clothes. Even though the costs of their production will
decrease, which will lead to an increase of their profit. The prices in the store should remain the
same, Zara should use that money to invest in a green distribution. With all of this planned Zara will
manage to run the company with ‘green hands’ within a decade.

7.3

Even though the company, Zara, in Argentina is already doing a great job in the clothing industry,
their methods can be improved. Suggestions for further recommended research for the company
Zara in Argentina is to analyse their weaknesses and threats of their SWOT analysis (Competitors
Content Team, 2020). This way Zara can get everything out of itself and achieve maximum results.

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Reference list
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Case of Spanish Fast Fashion Retailer Inditex-Zara. International Journal of Business and
Management, 13(5), 212. doi:10.5539/ijbm.v13n5p212c

Berfield, S., & Baigorri, M. (2013). Zara’s fast-Fashion Edge. Retrieved Dec 09, 2020, from
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Competitors Content Team. (2020, July 25). SWOT Analysis of Zara. Retrieved on Dec 17

2020 from https://competitors.co/swot-analysis-of-zara/

Christopher, M. (2020). Logistics and Supply Chain Management (4th Edition)(Financial

Times Series) by Martin Christopher(2011-01-06). utrecht , Nederland: FT Press.

Chua, J. M. (2019, September 12). Fast fashion companies like Zara, Boohoo, and H&M are
bad for the environment and economy. Retrieved November 16, 2020, from
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and cannibalization. Retrieved on January 5th 2021 from

https://dspace.mit.edu/bitstream/handle/1721.1/90163/890199174-MIT.pdf?sequence=2&is

Allowed=y

Gestal, I. P. (2019, July 12). Inditex sourcing: where does Zara owner make its clothes?

Retrieved December 2020, from

https://www.themds.com/companies/inditex-sourcing-where-does-zara-owner-make-its-clot hes.html

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Hanbury, M. (2018, October 28). We went inside one of the sprawling factories where Zara makes

its clothes. Here’s how the world’s biggest fashion retailer gets it done. Retrieved November 24,

2020, from

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ING, (n.d.). Sustainable Supply Chain Finance. Retrieved on 5th January 2021 from

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Ivalua Inc. (2020, May 6). Zara’s Supply Chain Management Model. Retrieved November 18,
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John. (2020, June 11). Zara Mission Statement 2020: Zara Mission & Vision Analysis.
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Leidiger, N. (2017). Internationalization Strategy of Fashion Retailer ZARA [Ebook].

Mhugos. (2020, November 09). Zara Clothing Company Supply Chain. Retrieved November 16,
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https://notesmatic.com/2018/12/zara-swot-analysis/#a2

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Team, C. (2016, November 11). 4 key facts about Zara’s supply chain success. Retrieved

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Vivuya, B., Kucharska, M., Sanz, J. A., Phakathi, M., Pisker, L., & Raynal, M. (2013, May 15).
Zara uses slave labour in Argentina. Retrieved November 16, 2020, from
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WSJ (2020). Zara Investment. Retrieved on January 5th 2021 from


https://www.wsj.com/market-data/quotes/JO/ZARA/financials
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ZARA’s supply chain. Retrieved December 2020, from https://medium.com/@yiranz6/how-does-

zara-dominate-the-fashion-industry-again-analysis

-on-zaras-supply-chain-86a5e3be54d3

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Appendix 1: Peer assessment reports

Youssra Nait Rrami

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Alexandra Gabova

week 2

week 3

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week 4

week 5

week 6

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week 7

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Eseigbe Ejemenare, 500813462

week 2

week 3

week 4

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week 5

week 6

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week 7

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chaimae eddabani

week 1+2

week 3

week 4

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week 5

week 6

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week 7

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Appendix 2: Weekly reflections per group member

Alexandra Gabova, 500816005

What I wrote myself: 1.1, 1.5; 2.1; 3.2, 3.4; 4.1; 4.2; 4.3; 6.1; 6.5; 7.1
What I improved: 1.2; 1.4; 2.2; 3.1; 3.3; 3.5; 4.4; 4.5; 5.1; 5.2;

Week 2. Ch. 1,2


In the first week, I managed to organize the working process in our group. It appears to be difficult
to explain what to do to others when they did not read the chapter in the book. So, I had to initiate
all the activities in the group. I was also struggling a bit myself, because it was not so clear how
to include Argentinian perspective in the report, so far there was only general information. Now, it is
clearer and I have an idea how to write. I still have doubts about the purpose of the report and
problem analysis and statement. Maybe as we write chapter after chapter it will be making more
sense, but for now I do not see how ethics is our main problem.

As for the feedback I received, I already improved some formalities as page numbers and the
structure description. Apart from that, there was no feedback regarding my parts, so I assume it was
good. However, I need to pay attention to the parts of the others in order to improve them and prove
read, as I can see that some theories are applied incorrectly.

Week 3. Ch. 3
This week's theory was interesting for me and easily applicable to the Zara case. I wrote about
drivers of supply chain and agile strategy. Both parts were almost correct, I just had to analyze in
more detail regarding strengths and weaknesses. Moreover, the feedback session was also very
informative and after it was clearer for me in what direction I should go. I did not apply the feedback
directly but rather left it for later. Other parts of the chapter all required changes as some contained
serious mistakes. For me it is not difficult to improve one’s work, however, I feel that it is unfair that
people do not apply feedback and I have to do all the work for them. For that matter, I keep track
of work I have done in order to reflect that in peer assessment.

Week 4. Ch. 4
This week's material and report writing was the most difficult for me so far. I could hardly find any
decent sources to take the data from. This is also the first week when we as a group did not finish the
draft of the chapter before the deadline and some parts were still missing. There was no help from
others when I was struggling to write the chapter as I did not find sources. I find this behavior rather
unprofessional. I always tried to explain where to find and how to write their parts if there were
any questions. Anyway, it did not stop me from writing my parts eventually, but due to lack of
knowledge and resources I could not finish part of the hurdle rate.

Week 5. Ch. 5
I think from that moment on, I was lacking motivation to write the report, however, I knew the
material and the information about Zara. The overall spirit of our group was down a little

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bit as well, in my opinion. The moment that I did not know what to write was demotivating for
me, hence that week I did not write my part, but I did try to do some research. My mistake this week
was that I did not let people know that I could not write my part this time and ask for more time and
maybe help. This is the point for my improvement. It is better to say something, even not good news,
rather than let others think bad about me. As for me, it is possible to experience such downturns in
motivation level, as long as I finish my part on time there is no significant problem. What I need to
do is to identify such moments for myself and find ways to get back on track as soon as possible
with little consequences to my team members.

Week 6. Ch. 6
This week we happened to have no feedback due to some technical problems with Brightspace and
the student being inattentive. This was very unfortunate, because I was hoping to get advice on how
to improve my part. There was also limited information on the internet about entering the market in
Argentina. Hence, from general information available I tried to elaborate and assume how Zara
entered the market back in the days. Also, the last part was left till everyone is finished in order to
work on it together, but this week the communication between group members was terrible, in my
opinion, and I was no better than others. It was my mistake not to let others know what I was up to,
but also students did not finish their part before the set deadline, so I saw no need to meet. The next
time during the same situation I would behave more communicative and will not give any reason to
doubt my behavior and expertise.

Week 7. Ch. 7
The last week is always busy and stressful for me, this time is no exception. It took me almost a
week to organize myself after the holidays to finish my parts and apply the feedback and improve
the parts of other students. I must say that every time it was a pleasure to complete a chapter and see
that the report is shaping into something worthy. However, I find it unfair and even annoying to
finish at the last moment; this is what I experience when working in the group. I used to be like most
of the students when waiting till the last moment before the deadline to finish work, however now I
try to submit my work way before the deadline. When it is a group work, it is always late in the
evening and this keeps bothering me. This time especially taught me to be patient and explain very
carefully and in simple words, so that everyone would understand.

With the completion of this course, I was able to benefit from gaining more knowledge in the
field of supply chain management. Even though I am not going to specialize in this particular sphere,
it was extremely important to get familiar to it.

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Chaimae Eddabani 500832063

week 1 Chapter 1+2:

Alexandra, Ejemenare and I chose a country, and we worked on the first two chapters. All the work
was divided well and the communication was good. In the first chapter of the report we talked about
the background of the report, the company description of Zara, about the problem statement, the
problem analyses and the organization of the report. I personally learned about Zara. I think more
than half of my closet is from Zara, so it is/was interesting for me to read about the company and
about the clothing. I also was a little shocked, because, like we wrote in the report, they cause a lot
of damage to the environment, which I don’t support. But at the same time, I bought a lot of clothes
there, so indirectly I supported them as a company, so also their actions. That made me think about
my actions a lot, and made me realize that it is wise to do some research before I buy (in this
example) clothing. In the second chapter we wrote about the Inventory decision and demand forecast
and the Sales and Operations planning. In this chapter I found out that their supply chain plan is
really strong.

week 2 Chapter 3:

This week we received a new group member, because we were only with three people. I was really
happy with this, because otherwise we had to do much more for this report than we actually expected
to. Youssra Nait Rrami joined our team. This week we worked on chapter three. We divided all the
tasks equally a week before the deadline so everyone would have enough time to finish their part. In
this chapter we discussed the Corporate strategy, the Drivers of supply chain performance, the Five
inventory strategies, the Agile strategy and the Postponement strategy. I already knew that Zara was
a fast fashion retailer, however I learned that Zara’s supply chain and their strategies are much
different than other fast fashion brands. With their vertically integrated strategy the company is able
to quickly respond to customer demand and change the product accordingly. This gives them a huge
competitive advantage. The communication between us (the team members) also went really well
and everyone finished their part on time, which was also nice.

week 3 Chapter 4:

This week we worked on chapter four of the report. We divided the tasks properly. In this chapter we
needed to discuss the financial performance of Zara Argentina. Me and my group members noticed
that it was quite hard to find information about that. We knew that because we had the country
Argentina, it would be possible that some data would be hard to find, but we didn’t expect this. We
did our best and tried hard to complete this chapter with a satisfied feeling. Unfortunately, the only
one who accomplished to finish her part was Alexandra. Something that I found unpleasant this
week was the communication in the group, because nobody I was the only one who told the group
that I wasn’t able to finish my part, even though only Alexandra finished her part. Apart from that,
of course, I still like my group. What I could do better in the future is to stick more to the weakly
planning’s I make, because if I did that this week, I would be able to finish my part.

week 4 Chapter 5:

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This week we worked on chapter five of the report. We divided the tasks properly. Unfortunately,
the communication in the group, again, was poor. I was the only one who finished her part, but
nobody communicated with the group that they would not make it. Apart from that, I learned a lot
during this week. I had to write about outsourcing. I thought the way they handled it is great. In the
future, I want to open multiple successful businesses on my own, so reading and writing about a
successful company like Zara also helps me a lot to figure out what I want to do in the future and
how I will handle things. I think the most important part that I will take in account in the future for
myself is that outsourcing also brings a lot of risks with it. risks that can happen easily.

week 5 Chapter 6:

This week we worked on chapter six of the Zara Argentina Case. Again, we divided the tasks
properly. One thing that I really like about our group is that everything in this report is divided
equally. Nobody is/wants to free ride and we help each other if someone needs it. We can rely on
each other and that is something that I don’t always have in a group for a school assignment. One
thing that still needs improvement is the communication in the group. This week everyone did finish
their part on time, so that was nice. This week I wrote about the environmental and ethical problems
that the company Zara has. I liked that I could write about this, because even though my part of this
report will not make a real difference in the Zara supply chain, it felt good that I figured out
information about problems that they have and things that they could improve.

week 6 Chapter 7:

This period we worked on chapter seven of the report. This is the last chapter of the whole report.
We had much more time to finish this part because we also had two weeks of Christmas break. For
the last time we divided all the tasks properly. We also discussed what we wanted to do with the
final presentation. Also, for the presentation we divided everything and made sure that everyone had
a fitted part. If I look back at the report, I think the time went by really fast. Something that I could
improve in the future is to not only focus on my own parts that I have to make, but also read and
learn about the other parts, because we also have an exam about chapters that we had to include in
the report. If I did that, learning for the exam would take less time and would be much easier.
Furthermore, I enjoyed writing this report and I’m excited to give the presentation.

Youssra Nait Rrami 500824711

Week 1
In week 1 we had an introduction week, unfortunately due to circumstances I was not put in the class
yet. But I do know that the teacher gave information about the subject that we had to learn and work
with.

Week 2
I was not in the class at the time of the tutorial, also due to the circumstances. But I know for a fact
that we were divided in groups and countries.

Week 3

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This was the first time that I had been in the class, I was put in group 2 Argentina. The other
group members had already finished chapter one and two. They friendlyly explained what we had to
do to me. For week 4´s deadline we had divided each part of chapter three. I had to work on chapter
3.5. It was about the postponement strategy. It was very hard at first, but after a while I understood
what I had to do.

Week 4
This week we had to work on chapter 4, which entailed the ISCM strategy, added value and financial
performance of the company. I had to work on 4.2, which was about how the company's supply
chain method impacted its income statement, balance sheet and cash flow over the last three years.
Firstly, I made use of the wrong data, I thought we were limited to the case. Instead of using data of
the years 2019, 2018 and 2017. I made use of the data that was described in the case. Thanks to a
group member I could easily change my part.

Week 5
This week we had to work on chapter 5. This chapter was about outsourcing and the ISCM strategy.
I had to work on 5.3, which was about the 3PL management and to what extent has Zara improved
service through better three party logistics. I found it difficult in the beginning to start, but as soon as
I wrote a part the word just automatically came in my head.

Week 6
This week we had to work on chapter 6, chapter 6 is about entering the new market and explaining
the adjusted ISCM plan. This included our allotted country, Argentina. I had to work on 6.2, which
was about the financial policy consideration that Zara has to keep in mind when entering a new
market. Also I helped with 6.5, this was about the adjustments that have to be made to enter the new
market. Like for example the Argentine customers’ demands.

Week 7
This week we had to work on the final chapter. Chapter 7 was an overall conclusion of all of the
other paragraphs and chapters. My part was 7.2. This was by far the most fun part that I had to
make in this whole report. It was about implementing a solution to make Zara more sustainable.

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EJEMENARE

Week 1

The amount of things I have learned in this class is immense and to briefly summarize what I learned
in class, I would have to claim that I learned how to learn. I have a better understanding on how
various ways of intaking information can lead to various versions of understanding.

In the first week me, Chaimae and Alexandra chose the country Argentina to base our report on. Our
first choice was South Africa but unfortunately it was taken already. At first I had no ideal on what
the report should be about but my group members were there to explain it to me. I struggled with my
part 1.3 because I couldn't figure out what issue we could relate to Zara. However, sustainability was
later chosen and mostly with the environmental issue. So far so good the teacher had no problem
with my chapter.

Week 2

I have learned several things throughout this course – things that will help me in the future, as I
make my way through university, and that will help me grow as a person, as well. First, I learned
how to write MLA style papers with citations and references, and this has helped me learn how to
cite quotations properly and how to use quotations in the text of my writing. I used to make mistakes
on these papers, and professors would always correct my citations, but now, I have mastered MLA
style, and I know I can master other citation styles as well. This will help me in just about every
class I have in school, as many classes use this common form of citation, so I have learned a skill
that will be valuable for many years. In week 2 it was now about implementing the theories we have
learned about now the hardest thing for me was the corporate strategy and the five inventories
strategies because my mind could not grasp it properly, but thanks to the already recorded classes I
went back to watch what was taught already.

Week 3 and 4

In this chapter the financial performance of Zara was to be discussed. my team members found it
quite hard to find information about this particular chapter. This is because we had the country
Argentina, it would be possible that some data would be hard to find, but we didn’t expect this. We
did our best and tried hard to complete this chapter. Thankfully it was accomplished.

Week 5 and 6

chapter 6 is about entering the new market and explaining the adjusted ISCM plan. This included our
allotted country, Argentina. Second, I have learned a lot about this country that I did not know about
or understand before and has given me knowledge on how to write documents that are consistent,
easily navigable, and the importance of emphasizing information. Such as with the Instructions
assignment and revising that, I was able to see where I could make things easier to navigate and
design it in a way that was readable and accessible,

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WEEK 7

This week I really couldn’t focus. I had a lot of personal issues and it took me a week to organize
myself and finish my parts and apply the feedback. I could finally breathe seeing that the chapter
was complete and see that the report is grade worthy. With the completion of this course, I was
able to benefit from gaining more knowledge in the field of supply chain management. Even though
I am not going to specialize in this particular sphere, it was extremely important to get familiar to it.

39

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