Zara It for Fast Fashion Case Notes

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Zara IT for Fast Fashion Case Notes Identify decision issue, and your role as a decision maker Salgado and Sanchez need to decide if it is the right time to update Zara’s information technology. The key concern is the outdated operating system they use for their point of sale (POS) terminals. Should they purchase the current POS machines from their vendors so that they can support their needs in case the vendor changes their machines to new technology? Or should they move to using new operating system for the POS application? The new operating system provides the opportunity for system and process improves that the store and throughout the company. Why has the decision issue arisen? Zara’s POS terminals are currently running…show more content…
550 were Zara stores - Opened average 1 store per day across world - 46% of sales in Spain, Zara generated 73% of the group’s sales. Women department account for 60% of sales - Rapid trend of profitability and growth-earning tripled between 1996 and 2000 (Exhibit 5 and 6) Operations -to reach its goal of quickly and accurately responding to shifting consumer demands, Zara established 3 cyclical processes—Ordering, Fulfillment, and design and manufacturing Ordering -Stores faced tight/strict deadlines for submitting orders to La Coruna twice weekly -Store manager’s determined replenishment quantities by canvassing the store -Store management could not look up their inventory balances on any in-store computer so canvassing store only way to learn about stock levels. -store managers learned about newly available items by checking their handheld computer that was linked each night, via dial-up modem to info systems at La Coruna. -digital order forms transmitted to store handhelds -store manager beamed each segment offer to a different handheld using infrared technology. Several store workers used the devices to fill in their segment of the offer as they walk through store then beam it back to the store manager. Manager then sends order back to La Coruna Fulfillment Design and Manufacturing -new designs introduces at the start of the seasons buying periods. Also introduces new items

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