Comparing the Supply Chains
The three fashion companies rely on fabrics as their main raw materials. In terms of supply, Zara and Benetton have owned several entities that provide a substantial amount of raw materials to their production plants. They do this to enhance continuous production and distribution of products into the market. On the other hand, H&M relies on suppliers from across the world to acquire raw materials for design productions. While Zara owns 40 percent of its raw materials suppliers, H&M depends on over 750 suppliers from across the world. In this context, Benetton operates in the same way as Zara. Both Zara and Benetton have production plants where they design and develop fashion. However, Zara uses a unique approach in which the design outcomes depend on their internal designers, market specialists and customer demands. This is opposed to Benetton and H&M that depend on the market changes and designers’ skills to create new trends.
In terms of distribution, Zara and Benetton have created automated warehouses near their manufacturing premises. Products are packed and sorted based on their market destinations before they are shipped to consumers. On the other hand, H&M relies on its retail stores to offer its products to consumers. The three business organizations understand the volatile nature of the fashion trends. However, Zara has created illustrative mechanisms to ensure that it meets customer demands in fast-changing context. Through its market specialists and customers’ specific demands, Zara is able to determine new trends and change the design and development of its products immediately.
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