Zara It for Fashion Case Study

Decent Essays
Executive Summary

Zara has relied on Personal Digital Assistants (PDA’s) and Point of Sales (POS) terminal operating on Microsoft DOS which are not linked to the headquarters or other stores for its daily transactions. Although, the system has proved to be stable and reliable over time, it has become obsolete and cannot be supported by the providers.
I recommend that the company invest on a new system like Windows, UNIX or Linux operating system which will enhance connectivity and flexibility in operations and information flow.
Investing in a cutting edge technology though may be capital intensive initially; it will ultimately improve efficiencies across board and provide new learning opportunities for the entire workforce.
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Also, Managers can see the newly available garments by consulting a handled computer that is linked each night via dial up modem to information system at La Coruna.
Fulfillment: Fulfillment or shipping clothes to stores to satisfy orders involve other group of commercials. They determine which store s would get available inventory and which would not base on past selling record. They work with product manager to determine future production for each SKU. They could also ship items that stores didn’t order like new garments. Ordering and fulfillment should be aligned with a modern IS

Design and manufacturing
Stores are located in prime retail districts and layouts are changed frequently. Zara introduces approximately 11 000 new items in a typical year while competitors average 2000-4000. Zara vertically integrated manufacturing with CAD which gives room for flexibility and quick turnaround. Designs and cutting of fabrics are done in-house. Garments are delivered to the stores with prices ready for the rack.
IS and Commercial Process
Zara’s approach to information technology was consistent with its preference for speed and decentralized decision making. No formal process on IS investments. Low It spending of 0.5% of revenue compared with 2% by competitors.
As the head of IT for Inditex, the holding company atop Zara, there must be meeting point with Bruno Ocampo Sanchez, technical lead for POS system on the
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