Question

Which are in your opinion the key success factor in the Supply Chain model of INDITEX?

▪ Flow chart Supply Chain of Inditex

▪ Plant locations of Inditex

▪ Logistics Model

▪ Purchase & suppliers strategy

▪ Store Management (identify different brands and highlight KSF on retail distribution)

▪ Quality control system, how does it works at INDITEX

▪ Identify Management production system at INDITEX

Answer 1

I believe that the KSF behind the success of INDITEX is because of its quality control systems, especially since most of the owned brands are global and need to make use of the country’s own production systems in order to cater to its demand. Quality control is a critical factor for its brand name and image, the fact that one of its owned labels Zara is widely known in the industry, especially in countries like India, as affordable premium apparel and fashion provider can be attributed to how closely it controls its production and supply chain functions and how well it manages its chains, be it the products or even the service. Customers don’t just purchase a product, rather, they also get the brand’s trust and service which holds a higher value in terms of customer loyalty and consideration than the actual product itself. They make use of approved plans of requirement, allowing the manufacturing unit some level of freedom as to how they choose to achieve the set specification in terms of material, the process of manufacturing, and as a result the final product that is shipped to the retailer’s site. The holistic approach to the supply chain is what has made the brand success and we can say that while product margin, supply chain prowess, identity management, and store management all play a part, none of the factors hold the same relevance as quality control. Customers buy into this quality, believing that the product they have purchased would meet their expectations and as a result, quality control allows them to build the necessary connection and rapport with their customers.

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