Inditex vs. Bennetton: Which is a Better System?
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For its Zara brand, Inditex manufactures the majority of the garments sells and undertakes all of its own distribution from manufacturing plants to its directly managed retail outlets. Benetton outsources most of its production and most of its retail outlets are owned and operated by franchisees.
Which is a superior system?
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Solution Summary
This solution examines Inditex's Zara brand in comparison to Benetton's brand. Inditex makes most of the garment's it sells its own directly managed retail outlets compared to Benetton which outsources most of its' production and has franchised retail outlets. It includes links and examples.
Solution Preview
To determine the superior system it is key to look at the components. By manufacturing most of the garments it sells, Inditex can better control quality and cost, and make changes to designs rapidly. Handling one's own distribution all gives greater control of timing, costs, and supply. The Zara brand has the fastest lead time in the industry (http://www.scribd.com/doc/44895004/Zara-H-M-and-Benneton-Supply-Chain-Management). Managing retail outlets allows Inditex to showcase ...
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