An efficient supply chain is becoming more and more key success factor for companies. Ecommerce Internet retailing is growing, in the states consumers like to have the comfort of shopping from their own homes at any time. According to the groups annual report Inditex GroupInditex operates 1, stores all brands only in Spain and another 1, stores in the other European regions.
The company spends less than 0. Moreover, managers consult personal digital assistant on daily basis to check the availability of new designs and to place their orders to what they think will be much appreciated by their customers. Furthermore, this system allows ZARA to take appropriate and quicker decisions due thanks to the information flow being very fluent.
An example of successful operations strategy in the retail industry is the strategy employed by Zara which is discussed in this critique. Also, the POS technology has allowed to tight up the links between vendors and led to improvements in the ordering process, in deliveries and in the distribution system as a whole, thus contributing to increase the level of responsiveness of ZARA.
Today the Zara name is recognized throughout the entire world. As garments did not stay for a long time in the warehouse, the company is able to cut down storage costs. This method minimizes the time as decision is conducted in one room, and in direct proximity to the information.
But it also avoids build-up of large quantities of unpopular stock. Also, the POS technology has allowed to tight up the links between vendors and led to improvements in the ordering process, in deliveries and in the distribution system as a whole, thus contributing to increase the level of responsiveness of ZARA.
Though, the Inditex branch is researching and developing new methods for expansion, the company must continue to re-invent and innovate themselves in order to stay fr References 1. Zara depends on word of mouth shuning advertisements.
Securing a foothold in as many markets as possible with the intended outcome of building brand awareness and an increased market share has resulted in Zara developing their brand, launching Zara Home. Hence it can be found that the group is heavily dependent on Spain and the European markets for its revenues.
A high-tech mobile tracking system speeds up the distribution system by proceeding high numbers of garments in a short period of time, thus minimizing intervention of labor force while increasing productivity. An item that you see today at the right side of the shop next week if not sold yet will be displayed at some other side in some other way.
Opting for a strategy of minimal advertising provokes the consumer into having to visit their stores. Zara has coordinators whose main task is to change the layout of the shop every week.
Information and communication protocols at Zara are radically different from its competitors. Zara operation management, A business case! Tuesday, September 2, Zara operation management, A business case!
1- Executive Summary Operations management is in regard to all operations within the organization related activities including managing purchases, inventory control, quality control, storage and logistics.1/5(1).
Case study Zara 1.
ZARA is a Spanish clothing and accessories retailer based in Arteixo, Galicia. Founded in 24 May, by Amancio Ortega and Rosalía Mera.
Zara needs just two weeks to develop a new product and get it to stores, compared to the six-month industry average, and launches around 10, new designs each year. Zara was described. As described in a case study of Zara’s supply chain, the company is vertically integrated, controlling most of the processes in its supply chain.
On the average, 50% of its products are manufactured in Spain, 26% in the rest of Europe and 24% in Asian countries. Case Study of Zara: Use of Technology to Improve Operational Responsiveness Fashion giant, Zara, forms part of the retail group ‘Grupo Inditex’ which is one of the “largest, fastest growing and successful” clothing retailers across Europe.
ZARA case study Operational management Essay ZARA Zara broke almost all of the “rules” that McKinsley Consultants identified in regards to ways for retailers to successfully expand. The company does not minimize tangible investment, on the contrary its structure lies heavily on vertical integration.Zara case study operational management