Topic > Zara Case Study Answers - 961

The price advantage comes from having many suppliers and the ability to control costs through volume. Bottleneck items would be something like a chemical compound for a paint or industrial application. The cost impact is low, but the supply risk could be high due to the fact that the chemicals that make up the compound may be difficult to source in war-torn countries or difficult to transport safely. Non-critical items can be something like lubricants or other items in the manufacturing process that are cheap, readily available, and can be ordered by anyone