Zara operates in an industry where a fast response to the customer's needs is key and therefore controlling notorious bottlenecks along the supply chain is crucial. Zara can produce designs within two weeks from its appearance on the runway while competitors will take 2 - 6 months to achieve the same objective. Zara commits to only 50/60% of its production in advance of the season while most firms in the industry will commit as much of 80/90% (Andrew Pearson n.d). This gives Zara more flexibility in changing or introducing new unplanned lines. Zara is therefore in control of its capacity management and deliberately leaves extra capacity for flexibility and sudden requirements.
Zara has managed to achieve these feats by removing most of the bottlenecks from the system as well as planning long-term for extra capacity. Zara is a large investor in a dye and finishing plant which is a well known bottleneck in the industry. This enables Zara to oversee and control the dyeing process. Another trouble spot is sewing and even though Zara subcontracts part of this process, the bulk of the cutting (a crucial process that determines the fit) is executed in-house, again to ensure control and eliminate the bottleneck. The manufacturing processes which are outsourced are mostly in countries close to Spain to ensure a quick turnaround and a strong relationship is maintained with contractors and suppliers.
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Most importantly however, Zara has an excellent communication system through early investment in information technology. Poor communication is often the culprit of bottlenecks and Zara removed this bottleneck ensuring that retail managers are in touch with designers who are also communicating with market specialists.