Supply Chain Management

Global Supply Chain Management

Introduction

This paper discusses about the recommendations that have been provided to Zara in terms to successfully expand their supply chain network and for expanding their network in untapped areas (ZARA, 2016). In addition to this, in course 1, the study gives the brief understanding about the implementation process of the recommendations which is suggested to Zara in terms to expand their distribution channel in the uncovered areas. So in such case, the main suggestion which is given to Zara is that Zara should use or incorporate the merger and acquisition strategy for expanding their distribution and supply chain network in multiple areas. The cause of suggesting this recommendation is that since Zara owned all the channels of supply chain network, so it becomes quite difficult to expand to far location as it is prove to be very expensive to distribute such products. Therefore on the basis of such recommendation, in course 2, the study discusses about what type of changes and alterations are required to use for procuring and attaining the recommendations. Moreover, the theory also discuss in this assignment with the aim to design the global network management. At the end, the various issues and challenges going to be discuss for successfully executing the given suggestion in relation to supply chain management (Yu & Ramanathan, 2012).

Section 1

Global procurement change

For properly executing the changes in the implementation of recommendation, there are some important actions or factors need to be undertaken.

  • First action should be to select the internationals suppliers for making merger or joint venture with the company (Fernie & Sparks, 2014). Zara should tries to address those companies in the international market which has high network or reaching towards the particular area. Because by contacting such companies will provide benefits to Zara in terms to grab the new market and able to maximise their customer base. So in that case, should use certain standards before making any decision about the merger. The element would be goodwill of the company and its delivering services quality. These two elements need to focus by Zara while selecting the international suppliers for bringing expansion in their supply chain network (Christopher, 2016).
  • Second action in which Zara need to focus is the managing of international suppliers. It is quite essential to build the healthy relation with their partner company in the case of merger or acquisition. The merger and joint venture strategy will prove only successfully till then both the companies get the benefit from this partnership. So, Zara to make remain in the partnership, for that they need to perform certain activities like Zara need to share their some profit. At the same time, they also need to follow the corporate governances to ethically perform the operations (Christopher & Holweg, 2011). Zara also need to trained their employees in a way to deal with the international supplier company and able to coordinate them on a timely manner.

A.    Justifying the changes:

The executing the above changes in the recommendations will provide various benefits to Zara in relation to expand their supply chain network in the international market in an easily way. At the same time, this strategy also helps Zara to reduce their high investment like on the research part or marketing of their product (Wang et al., 2011). Therefore the major the advantage that achieve Zara from this process is that it able to reduce large burden of their supply chain management. This assist them to only focusing on the production part of their product line and develop into the unique way that could attract the new market also. The healthy relation also assists Zara to grab the new market and enhance their customer base. Therefore, this indicates that the both the actions will contribute largely to successfully supply chain management to the far international areas (Caniato et al., 2011).

B.    Implement the knowledge:

It is also important to define the knowledge about the changes that brings for the implementation of the recommendations. The first change that identify which would prove to be helpful for Zara are the selection of international suppliers for making partnership. This helps the company to supply their products in the untapped market at the affordable rate. While the managing of the international suppliers is also consider as a vital tool for the company in terms to manage their large supply chain managements network (Chopra & Sodhi, 2014). These change implementations helps Zara to deal with the large area by making less investment. At the same time, by managing the relation with international suppliers, Zara could able to grab the large market share and making improvements in their distribution channel. The effective distribution strategy allows to delivering their product on the right time to the target customers. Hence, both the selection and managing of international suppliers is the essential tool for this strategy.

Global Network Management

Global network management is the vital part for the managing of global network of Zara in regards to achieving the changes successfully. In this, Zara should need to adopt the advanced system for making coordination with the partner company in international market (Kim & Feamster, 2013).

A.    Justification of theory:

As per the theory of partnership, Zara could able to establish the healthy relation with their international partners by installing the advanced systems. This theory provides support to the companies for making longer relationship with their partner business (Mellahi & Collings, 2010). This is done through sharing profits, coordinating the work with the partner company. Such facilities will be achieved by Zara with this theory.

B.    Implementation of theory:

This theory could be implementing at Zara by using the WAN area or installing of extranet. This allows to coordinating the work of the partner company with Zara. The implementation of the intranet or WAN network allows Zara to receive the customer orders/ complaints and accordingly Zara could able to manage with their partner company. Basically, the implementation of this theory brings the healthy relation between the partners company. So, the using of technology would be considered as a best way to implement this theory in Zara for successfully expanding the supply chain network to the untapped areas (Böttcher, 2013).

Conclusion

From the above discussion, it can be defined that there are various problems that arise with the implementation of changes in accordance’s to the given Zara recommendations for improving the supply chain network. The making coordination in the partnership considers a biggest challenge and issue for both the companies. Moreover this theory only focuses on the making healthy relationship through sharing of profits but not the solving of conflicts. However, these are the issues faced by Zara in making partnership, merger or acquisition with international suppliers.

Section: 2

Global manufacturing network

Global manufacturing network consider as an important factor for all the companies in terms to get the high exposure and able to manage their expenses. At the same time, this network also assists in managing the global supply chain network and allows the timely delivery of product on right time (Schiff, 2012). This network also helps the companies to bring an improvement in their services and allow to delivering quality services.

In addition to this, the company to properly adopt this network required to possess certain skills and competencies in the management. Similarly in the case of Zara, the GMN prove to be useful for them in terms to establish successful supply chain network in the across the globe. The GMN network could assist Zara to reach towards the new international market which was not covered by Zara in their past (Osborne, 2010). Other than that, Zara also become capable to handle the multiple customers orders and complaints and able to manage them in different location. This is only become possible through making partnership in global market. Therefore, the global manufacturing network brings various benefits for Zara in their implementation plan of supply chain management through partnership strategy.

Justification of theory

It is determined that the global manufacturing theory plays a significant role in the context of Zara implementation plan of expanding their supply chain network in across the globe with the making partnership with the international suppliers (Zhang & Huang, 2012). This strategy would be proven quite beneficial for Zara under the global manufacturing theory. This is because, this theory also directs the company towards the establishing their business operations in the global market. At the same time, this theory also provide support towards the fulfilling the demands of all the customers without allowing the delay in the services (Kara et al., 2010). In addition to this, global manufacturing network also help Zara in terms to handle or manage the multiple distribution or supply chain network. Besides that, this theory also proves to be helpful for Zara to increase efficiency in their supply chain with minimum cost.

Implementation of theory

Zara through using the global manufacturing network theory can able to properly execute their supply channel in across the globe. Thus, with the help of this theory, Zara able to reach to the multiple international suppliers who have high goodwill in the market and by contacting them, Zara could easily establish their network in the particular area. Moreover, the implementation of this theory allows Zara to get the recognition in all the uncovered areas or market where they have not explored (Tzeng & Huang, 2012). At the same time, they also become competent enough to address the issues of customers of each international market. This helps Zara to maximise their key customer locality towards their brands. So, it can be stated that the global manufacturing network will contributes high on the implementation of supply chain management of Zara in across the globe (Tao et al., 2011).

References

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