Inditex SA, the parent company of the renowned Zara brand, is embarking on a trial to enhance the efficiency of its supply chain. Specifically, the fashion retailer is increasing the frequency of truck deliveries to select Zara stores in Madrid. This trial will double the weekly deliveries from two to four, a move designed to minimize lost sales due to inventory shortages and ensure that a wider range of products is consistently available to customers.
Inditex boasts a distinctive logistics setup that underpins its status as the world’s most valuable fashion retailer. Unlike many competitors that rely on distribution centers spread across the globe, Inditex consolidates the majority of its products in Spain before dispatching them in small packages to its stores worldwide twice a week. This strategy empowers the company to replenish stocks with exceptional speed, setting it apart from its peers in the industry.
To optimize the allocation of stock based on the unique needs of each of its 5,745 stores, Inditex leverages a blend of historical sales data, current inventory levels, and daily input from store managers. Last year, the company introduced a novel model that calculates the optimal unit quantities for the initial shipment of new products, as highlighted in its latest annual report.
While these trials represent an important step, it’s worth noting that they do not guarantee a permanent overhaul of the delivery system. Past initiatives, such as same-day deliveries, have been selectively implemented or ultimately abandoned.
Zara stores in Madrid are supplied from logistics hubs located in Arteixo, Zaragoza, and Meco. Zara is a significant component of Inditex’s global store network, accounting for about 32% of the company’s stores and contributing to 73% of its total sales.