Zara Case

1960 Words Mar 20th, 2008 8 Pages
Introduction Zara, the largest retailer within the Inditex portfolio, has been able to maintain a competitive advantage over its competitors by offering up-to-the-minute fashions in its stores throughout Europe, Asia, the Middle East and the Americas. Zara is the result of a clothing factory integrating forward to take advantage of linkages between manufacturing and retailing. These linkages are facilitated by information technology and Zara has developed a highly automated production and distribution system to service its stores. The information systems within Zara stores are easy to use and stable, but much discussion is taking place regarding whether or not to upgrade them to take advantage of new technologies which could better …show more content…
Product managers keep track of supply and demand levels for merchandise and order more of an item if supply is running low or call off additional production if demand slows. Advanced machines are used to cut cloth into patterns to minimize waste and keep productivity levels high, although no technology is used to optimize production schedules. Instead, managers set the production schedule based on given quantities and due dates, offering the opportunity to create further improvements by utilizing information technology to increase production efficiency. Garments are manufactured in response to orders from stores and are immediately sent to one of several distribution centers where computers and conveyor belts sort and move the merchandise to fulfill each order. People only get involved in the process if there is a shortage of a particular item, in which case a product manager will determine which stores will receive the merchandise. The automation of the fulfillment process at distribution centers works very well for assembling the large orders for stores but is not optimal for small orders so Zara does not sell clothing through its website. 4. In-Store Operating System: Behind the Times Although Zara utilizes advanced technology to increase the speed in which its designs

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