ZARA

1369 WordsJan 8, 20156 Pages
Question No1.Advantages of responsive supply chain of Zara? A responsive supply chain of Zara works collaboratively among the stakeholders to exchange information in a feedback loop in order to produce enough of a product to satisfy uncertain demand. Zara has greater visibility into the supply chain which makes it responsive to the current market. This allows Zara to sense and respond quickly to capitalize on new opportunities. The information systems are the heart of the business model which enables it to better adapt to and meet customer demands. Information transparency and real time business intelligence leads to shorter cash to cash cycle times.(The duration between purchase of the inventory and collection of accounts receivable from…show more content…
I. There are four critical information areas that give the Zara its speed which includes: II. Collecting information on consumer needs, trends information flows daily and transferred into a database at head office. Designers check the data base for dispatches as well as daily sales numbers, using the information to create new lines and modifying the existing one. The designers have real time information and the decision like pricing; fabric cutting is done based on it. III. Standardization of product information at Zara warehouse allows to quickly and accurately preparing design, with clear cut manufacturing instructions. IV. Product information and inventory management allows it to manage thousands of fabric and trim specifications, design specification as well as their physical inventory gives Zara team the capability to design a garment with available stocks rather than having to order and wait for the material to come in. V. Distribution management with its state of the art distribution facility allows it to distribute the merchandise all over the world. The application of optical devices and automatic tracks for the movement of tracking of the merchandise allow it manage huge amount of merchandise at a time.

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