Zara Men vs Benetton

Zara and Benetton, have made their progress through different business strategies
and how they influenced each other. Specifically, the work will concentrate on
continuous change and advancement of the connection amongst suppliers and
retailers keeping in mind the end goal to increment undertaking proficiency and
client satisfaction. In that respect, the point is to show the critical pretended by IT to
accomplish the proposed outcomes.
Zaras business model can be divided into the three fundamental
components which are given below

Concept

Value Drives
Capabilities

Concept:
To maintain design, production, and distribution processes that will empower Zara
to react rapidly to shifts in customer demand.
Capabilities:
It keeps up tight control over their production processes keeping design and
manufacturing in-house or with some strategic partnerships found close-by. They
have strategic agreements with nearby makers that guarantee Just in time (JIT)
delivery and services. In this way, keeping up the adaptability important to design
and deliver more than 12000 new items every year.
Value Drivers:
Value Drivers for Zara are both tangible and intangible in the benefits that are
returned to all stakeholders. Tangibly, the parent company of Zara, has 11.02% net
margin on operations. Intangibly, customer loyalty and brand recognition have
provided significant value to Zara.

Zaras inventory model:

Benetton strategy is to adapt diverse geographies through innovative model:

Product Innovation

Process Innovation

Organization Innovation

Product Innovation --unique global products, same design, same apparel sold
through similar store formats across globe.
Process Innovation delayed dyeing, postponement strategy to reduce lead
times and costs.
Organizational Innovation Divisional structure, Unique Agents model for
managing retail franchise, Dual Supply Chain structure, Quasi Franchising
 system for retailers (License approach instead of Franchise resulting lesser
legal complications, quicker operations and better control)
The Company's manufacturing processes utilize modern technology and
automatization to reduce costs and accelerate its execution. In addition, the
"contractor system" allows Benetton to keep its production costs significantly below
some of its competitors.

Benetton has been using a vertically integrated model which is based on:

technically sophisticated parts that were retained In-house

labor intensive parts were Outsourced

These arrangements were provided Benetton the flexibility to operate in a highly

competitive environment and labor cost.
Benettons using Dual Supply Chain Systems that were of two kinds:
Sequential dual supply chain: acted on push focused demand. This was generally
used for supplying garments which were ordered by the franchisees before
beginning of season.
Integrated dual supply chain: was used for clothes that were delivered during
season. these items needed to be in the market within a very short timeframe and
in this system, the clothes were made taking into account the demand from
customers and the inputs from sales team. This was used mainly to top up the
existing seasonal collections during the same season and to keep with the latest
fashion trends
Using Dual Supply Chain system manifested some productive outcomes for
Benetton in the likes of:

Helped Benetton offer new products to its customers on time.

Benetton could maintain the sales momentum even after the season by
minimizing the time to market. The dual supply chain offered product based
on demand pull.
Benetton could divide inventory shipments into smaller lots and built the
capacity to ship clothes every two week.
It could also deliver garments in a week if demand arose.
Moreover, Benetton was able to balance time to market and cost which
hadnt been possible before.