scholarly journals Super Responsive Supply Chain: The Case of Spanish Fast Fashion Retailer Inditex-Zara

2018 ◽  
Vol 13 (5) ◽  
pp. 212 ◽  
Author(s):  
Md Afzalul Aftab ◽  
Qin Yuanjian ◽  
Nadia Kabir ◽  
Zapan Barua
Keyword(s):  
Supply Chain ◽  
Product Design ◽  
Distribution Channel ◽  
Life Cycles ◽  
Successful Implementation ◽  
Production Operation ◽  
Market Demand ◽  
Fast Fashion ◽  
Chain Flexibility ◽  
Responsive Supply Chain

The successful implementation of an integrated supply chain strategy enhances total control over the operations and thus enhances speed and flexibility. The objective of this study is two-fold: first to identify the constituents that mold the fast fashion retailing business model, and second to discuss how global leader of fast fashion retailing Inditex-Zara’s product offering is strongly supported by integration of various supply chain operations. The findings suggest that vertical integration through ownership of various operational stages including product design and development, production operation, logistics and distribution channel; appropriate sourcing strategy to meet product needs; application of process/product modularity practices in product design, material procurement and manufacturing to ensure manufacturing flexibility; flexible logistics capability; and all of these seamlessly integrated and coordinated by a centralized IT infrastructure can significantly raise overall supply chain flexibility and responsiveness. Inditex-Zara’s super-responsive supply chain reduces ‘bullwhip effect’, order-to-delivery lead time to stores, ensures lean inventory and high level of responsiveness to adapt and deliver products to stores with latest fashion trends and customer feedbacks at a rapid speed. Thus Inditex-Zara is able to successfully counter the negative effects of short product life cycles, high product variety, demand uncertainty and thus able to closely match product supply to the stores with market demand. This contributes to lower inventory backlogs; avoid mark-down losses and/or inventory stock out.

scholarly journals Postponement Application in the Fast Fashion Supply Chain: A Review

2017 ◽  
Vol 12 (7) ◽  
pp. 115 ◽  
Author(s):  
MdAfzalul Aftab ◽  
Qin Yuanjian ◽  
Nadia Kabir
Keyword(s):  
Supply Chain ◽  
Value Chain ◽  
Building Blocks ◽  
Inventory Level ◽  
Successful Implementation ◽  
Process Standardization ◽  
Fast Fashion ◽  
Supply Chain Strategy ◽  
Manufacturing Operations ◽  
Inventory Holding

The successful implementation of push-pull supply chain management strategy has an important role in improving the competitiveness of an organization. The objective of a push-pull strategy is to minimize the holding of inventory level in finished form and rather produce finished goods from semi-finished inventory only upon receiving final order. One of the vital building blocks of push-pull supply chain strategy is postponement. The main objective of this review paper is to discuss the concept of postponement and its sub-categories such as product postponement and process postponement and their benefits. Then it is investigated how two prominent fast fashion retailers who are also categorized as original brand manufacturers in the apparel value chain apply the two variants of process postponement e.g. process standardization and process re-sequencing in their manufacturing operations to activate push pull supply chain strategy. The push-pull supply chain strategy in turn helps to reduce their order-to-delivery lead time to stores, reduce inventory holding level and minimize both physical costs and market mediation costs. The paper ends with concluding remarks. A framework is developed to illustrate the push-pull supply mechanism. This paper is a useful resource for practitioners in apparel supply chain willing to remove inefficiencies, costs and risks in their operations.

scholarly journals Optimal Pricing and Green Product Design Strategies in a Sustainable Supply Chain Considering Government Subsidy and Different Channel Power Structures

2021 ◽  
Vol 13 (22) ◽  
pp. 12446
Author(s):  
Kelei Xue ◽  
Guohua Sun ◽  
Yuyan Wang ◽  
Shuiye Niu
Keyword(s):  
Sustainable Development ◽  
Supply Chain ◽  
Social Welfare ◽  
Product Design ◽  
Green Product ◽  
Government Subsidy ◽  
Market Demand ◽  
Design Strategies ◽  
The Government ◽  
Green Product Design

Green product design is a vital measure to support sustainable development in a circular economy era. This paper studies the multi-product pricing and green product design strategies under different supply chain structures and government subsidy strategies. Considering different channel leadership, we establish the centralized (C), manufacturer-led (MS), and retailer-led (RS) supply chain models, respectively. By applying a game-theoretical approach, corresponding equilibrium pricing, green product design, and government subsidy decisions under different supply chain structures are obtained. Through comparison and numerical analysis, we find that: (1) the different subsidy strategies of the government have an important impact on green product development. When the government provides a uniform subsidy strategy, a RS supply chain can bring greener product, more market demands, more profit, and more social welfare; (2) when the government provides a differentiated subsidy strategy, MS and RS supply chain structures can bring greener product and more market demand than the centralized supply chain. They can also bring the same social welfare and the same product to the green design level. However, the MS supply chain structure can bring more profit for the firm; (3) the consumers’ green awareness positively impacts the design and development of green product. Therefore, it is beneficial for the firm to adopt reasonable measures to boost the environmental awareness of consumers in order to realize the sustainable development of our society.

scholarly journals A Predictive Maintenance System for Reverse Supply Chain Operations

Logistics ◽  
2022 ◽  
Vol 6 (1) ◽  
pp. 4
Author(s):  
Sotiris P. Gayialis ◽  
Evripidis P. Kechagias ◽  
Grigorios D. Konstantakopoulos ◽  
Georgios A. Papadopoulos
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Methodological Approach ◽  
Spare Part ◽  
Life Cycles ◽  
Predictive Maintenance ◽  
Successful Implementation ◽  
Equipment Maintenance ◽  
Reverse Supply Chain ◽  
Service Supply Chain

Background: Reverse supply chains of machinery and equipment face significant challenges, and overcoming them is critical for effective customer service and sustainable operation. Maintenance and repair services, strongly associated with the reverse movement of equipment, are among the most demanding reverse supply chain operations. Equipment is scattered in various locations, and multiple suppliers are involved in its maintenance, making it challenging to manage the related reverse supply chain operations. Effective maintenance is essential for businesses-owners of the equipment, as reducing costs while improving service quality helps them gain a competitive advantage. Methods: To enhance reverse supply chain operations related to equipment maintenance, this paper presents the operational framework, the methodological approach, and the architecture for developing a system that covers the needs for predictive maintenance in the service supply chain. It is based on Industry 4.0 technologies, such as the Internet of things, machine learning, and cloud computing. Results: As a result of the successful implementation of the system, effective equipment maintenance and service supply chain management is achieved supporting the reverse supply chain. Conclusions: This will eventually lead to fewer good-conditioned spare part replacements, just in time replacements, extended equipment life cycles, and fewer unnecessary disposals.

A template-based approach to measure supply chain flexibility: a case study of Indian soap manufacturing firm

2020 ◽  
Vol 24 (2) ◽  
pp. 161-181 ◽  
Author(s):  
Rohit Kumar Singh ◽  
Padmanav Acharya ◽  
Sachin Modgil
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Successful Implementation ◽  
Extensive Literature ◽  
Manufacturing Firm ◽  
Chain Flexibility ◽  
Content Type ◽  
Supply Chain Flexibility ◽  
Soap Manufacturing ◽  
Indian Soap

Purpose The purpose of this study is to quantify the supply chain flexibility for an Indian soap manufacturing firm and to measure its performance. The authors made an attempt to find key strategic and operational decision-making dimensions for developing effective supply chain flexibility environment. Design/methodology/approach The authors have extracted 11 supply chain flexibility dimensions through extensive literature review. The authors used a decision-making trial and evaluation laboratory (DEMATEL) to make causal analysis and prioritizing the dimensions. After DEMATEL analysis three major supply chain flexibility dimensions that seem to have significant amount of influence on supply chain performance of the firms were retained for further consideration. The authors have developed an excel-based template for quantitative assessment of flexibility performance indicators. Findings This study provides key enablers for the successful implementation of flexibility concepts in Indian soap manufacturing firms and gives a view how to measure the performance through designing template based on real data. This template can be used in other firms also by simply modifying the key attributes. Originality/value A flexibility index has been defined here with the purpose of assessing the level of flexibility vis-a-vis what is desired and is meant to be evaluated from time to time, to assess if the firm is improving its flexibility or not. The index assumes importance in view of the fact that it has been prepared based on feedbacks of both the upper and the lower management people of the firm engaged in policymaking and operations.

scholarly journals Decision and Coordination in a Dual-Channel Three-Layered Green Supply Chain

Symmetry ◽  
2018 ◽  
Vol 10 (11) ◽  
pp. 549 ◽  
Author(s):  
Zilong Song ◽  
Shiwei He ◽  
Baifeng An
Keyword(s):  
Sustainable Development ◽  
Supply Chain ◽  
Environmental Performance ◽  
Fresh Produce ◽  
Green Supply Chain ◽  
Market Demand ◽  
Equilibrium Solutions ◽  
Sustainable Performance ◽  
Dual Channel ◽  
Social And Environmental Performance

This paper investigated, for the first time, the game and coordination of a dual-channel, three-layered, green fresh produce supply chain, with regard to its economic, social, and environmental performance. Considering that the market demand is dual-channel priced and sensitive to the degree of greenness and the freshness-level, four game models, under different scenarios have been established. These included a centralized scenario, a decentralized scenario, and two contractual scenarios. The equilibrium solutions under the four scenarios were characterized. From the perspective of a sustainable development, the economic, social, and environmental performance of the supply chain was analyzed. To enhance the supply chain performance, two contract mechanisms were designed and the conditions for a multi-win outcome were obtained. Accordingly, many propositions and management implications were provided. The results showed that, (1) compared to the centralized supply chain case, the performance of the decentralized supply chain case is inferior; (2) in addition to increasing the concentration of the supply chain decisions, the two contracts proposed can effectively coordinate the green supply chain and improve its sustainable performance; and (3) the performance of the supply chain is positively driven by the consumers’ sensitivity to greenness degree and the freshness level of fresh produce. This paper fills a research gap and helps the participants of the channel recognize the operational decision principle of a complex green supply chain, in order to achieve a higher and a long-term sustainable-development performance.

scholarly journals Does Stakeholder Pressure Matters in Adopting Sustainable Supply Chain Initiatives? Insights from Agro-Based Processing Industry

2021 ◽  
Vol 13 (13) ◽  
pp. 7278
Author(s):  
Tamoor Azam ◽  
Songjiang Wang ◽  
Muhammad Mohsin ◽  
Muhammad Nazam ◽  
Muhammad Hashim ◽  
...  
Keyword(s):  
Supply Chain ◽  
Food Processing ◽  
Policy Implications ◽  
Successful Implementation ◽  
Sustainable Supply Chain ◽  
Sustainable Business ◽  
Global Marketplace ◽  
Sustainable Food ◽  
Business Goals ◽  
Stakeholder Pressure

Over the past few years, sustainable supply chain initiatives (SSCIs) have grabbed attention in the domestic, as well as global, marketplace of the food sector. Nowadays, the success of the entire food supply chain depends on the prosperity of farms, local communities, trader processors, and agro-based industries. Despite its importance, food processing industries (FPIs) are encountering various hurdles in achieving sustainable business goals due to the sheer number of potential barriers. Due to this reason, stakeholders are continuously pressuring the management of FPIs to embrace sustainable food processing activities. In light of this, the present study aims to apply a hybrid fuzzy analytical hierarchy process (F-AHP) framework, based on fuzzy technique for order preference by similarity to the ideal solution (F-TOPSIS), for analyzing the barriers and prioritizing the possible pathways in adopting the SSCIs for the development of FPIs. Based on the extensive review of literature and panel consultation with experienced experts, a total of seven main barriers, forty-two sub barriers, and five possible pathways as strategic tools were finalized and ranked. An empirical case investigation of a Pakistani-based food processing company has been taken to check the practical application of the proposed framework along with sensitivity analysis. The findings of this study reveal that the lack of sustainable outsourcing factors were found as the top-ranked barrier in implementing SSCIs, and the possible pathway to overcome this barrier is the appropriate management of the procurement cycle. The major contribution of this study is to establish a barriers prioritization framework and suggest possible pathways to overcome these barriers for the successful implementation of SSCIs. Finally, the theoretical, managerial, and policy implications are provided as a way forward for the concerned stakeholders and policymakers.

Research on the influence of relation embeddedness on innovation performance of manufacturing supply chain alliances using expert fuzzy rule –intermediary role of shared mental model

2021 ◽  
pp. 1-8
Author(s):  
Guo Lifang ◽  
Cui Yuwen ◽  
Wu Yamin ◽  
Ma Jiaqi
Keyword(s):  
Supply Chain ◽  
Mental Model ◽  
Fuzzy Rule ◽  
Innovation Performance ◽  
Market Demand ◽  
Shared Mental Model ◽  
Rule Based System ◽  
Manufacturing Supply Chain ◽  
Intermediary Role

The innovation and development of manufacturing supply chain alliance is an important way for enterprises to meet the increasing market demand and maintain the competitive advantage. From the perspective of embeddedness, the research model of relation embeddedness on innovation performance of manufacturing supply chain was constructed based on AMOS. Shared mental model was selected as intermediary variable to study the influence of relation embeddedness, shared mental model and innovation performance of manufacturing supply chain alliances. Expert fuzzy rule based system is utilized for measuring the performance of manufacturing supply chain alliances. The conclusion shows that relation embeddedness is significantly positive shared mental model and innovation performance. Shared mental model is positively affects alliance innovation performance and plays a part of intermediary role between relational embedding and alliance innovation performance. Practice implicates that enhance the level of relation embeddedness can promote the formation of shared mental model and improve the innovation performance of manufacturing supply chain alliance.

scholarly journals Cooperative Green Technology Innovation of an E-Commerce Sales Channel in a Two-Stage Supply Chain

2021 ◽  
Vol 13 (13) ◽  
pp. 7499
Author(s):  
Zongyu Mu ◽  
Yuangang Zheng ◽  
Hao Sun
Keyword(s):  
Supply Chain ◽  
Technology Innovation ◽  
Spillover Effect ◽  
Product Market ◽  
Free Riding ◽  
Green Technology ◽  
Market Demand ◽  
Two Stage ◽  
Sales Channel ◽  
Innovation Activities

The potential broad market of green consumption has encouraged an increasing number of enterprises to carry out green technology innovation activities. This paper examines a two-stage supply chain of e-commerce sales channels under different cooperative models. We find that consumers’ green preferences are the main factor that affects green product market demand. The manufacturer and the retailer can raise the levels of green technology innovation and extend green promotional services to expand product market demand in online and offline channels. However, consumers’ e-commerce preferences and online free-riding behaviors affect the manufacturer’s sales channel choice. The retailer can improve the level of green promotional services to hold offline channel market demand, while promotional behaviors have a positive/negative spillover effect on online market demand if the level of free riding falls above/below consumers’ e-commerce preferences. The higher the cooperative level is, the later the manufacturer will open the online channel and close the offline channel to ensure a high level of green promotional service from the cooperative retailer. The results show that the stronger the level of cooperation among all members is, the better the economic, ecological, and social benefits will be. Therefore, we design a revenue-cost sharing contract that can effectively motivate green technology innovation and green promotional services and afford all members win-win profits.

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