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In the process, Zara defies most of the current conventional wisdom about how supply chains should be run. Unlike so many of its peers, which rush to outsource, Zara keeps almost half of
its production in-house. Far from pushing its factories to maximize output, the company focuses capital on building extra capacity. Rather than chase economies of scale, Zara manufactures and distributes products in small batches. Instead of outside partners, the company
manages all design, warehousing, distribution, and logistics functions itself. The result is a superresponsive supply chain exquisitely tailored to Zara's business model...
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