Why has Inditex chosen to have both in-house manufacturing and outsourced manufacturing? Why has Inditex maintained manufacturing capacity in Europe even though manufacturing in Asia is much cheaper?
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Answer:
Inditex chose to have both in-house manufacturing and outsourced manufacturing because In-house manufacturing allows Zara to be able to respond quickly to the changing trend.Outsourced manufacturing is for the general, common and out season products.
Manufacturing is enjoying a resurgence in the United States. After years of falling output and a diminishing percentage of the labor force, the last few years have seen renewed growth. According to PriceWaterhouseCoopers, the catalysts for this revival include factors such as the strengthening economy, workforce quality, tax policies, the regulatory environment, and transportation and energy costs.1
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