Despite the current success, the company can maximize on e-commerce and foster strategic alliances for increased sustainability. Zara lines rarely stay on the shelves for more than a month, and new stock often sells out in days. Zara brands itself as the leader of fashion industry offering money value. What areas will you suggest be looked at for evidence-based decision making, and why? On which way can this be an disadvantage? Separate sales, , design staffs are responsible for each clothing men, women, children line. Therefore, Zara controls very well all its supply chain from manufacturing to the final customer. Fifth edition, Harlow, Pearson Education Ltd.
Postponement is the fact of delaying customization of a product until the last possible moment Zinn and Bowersox, 1988. Total control on the company enables them respond quickly to the changing fashion and customer preferences. Dalton 2010 recognizes that learning and core competence are the sources of competitive advantage. The founder of Zara is the richest person of Spain. The virtuous circle this approach sustains includes more frequent shopper visits to stores, fewer sales on markdown and faster cash conversion cycles.
The company should strive to form strategic alliances with competitors in supply chain management. The better way to understand their needs is to talk with them. International Journal of Production Economics, 114 2 , pp. It is very important for it to have wide range of efficient network in order to place the product in the desired time. Pedler et al 1997 The Learning Company: A strategy for sustainable development. The suppliers provide Zara flexibility to postpone the printing and dyeing procedures to adapt product lines according to updated market fashion trend.
He is the major motivator of creation of value or wealth. In fashion industry procurement plays a major role in supplier selection and product decision making. It designs 40,000 products every year and 10,000 products are selected for production Job design : Zara conducts an effective training sessions for the sales force and strongly emphasize on internal promotion. It also has three other small warehouses in Brazil, Argentina and Mexico to cope up with seasons in southern hemisphere and distance. Conclusion The overall situation highlighted that the organization needs to focus typically on the integrated business models as well as on the positioning and the pricing matters.
If someone visits, the store just one week late, finds out that the whole collection is new. At the time of placing an order the manager will be having knowledge of what items should be ordered. The minimum time taken by Zara to get the product in to the market is 30 days which is far better than its competitors. It ensures that the final design meets all the needs and that the product can be quickly brought to the marketplace while maximizing quality and minimizing costs Cox et al, 2013. Tata McGraw-Hill Education, New Delhi. For doing the on-ground marketing of our services, we have planned to hire a salesman. By this way, the organization can be able to maintain the better image globally and by this way, each need of the customers are maximized in a high manner.
That method decreases the components stock and avoid forecasting mistakes. This decrease in lead-times is made possible because the company manages all of its design, warehousing, distribution, and logistics. This adjustment is important in ensuring that the company maintains a high level of flexibility in the variety, amount and frequency of goods produced. Advertising Advertising might be important in the future when competitors are becoming more competitive and demands are declining. Designers designs the product and shows their design catalogue to the market experts and buyers.
The products are highly unpredictable because they are susceptible to seasons and the fickle demands of consumers whose tastes can change on a whim. These three companies have the different narrower nature of decision-making. The international fashion retail supply chain. Burghausen and Fan, 2002; Kennedy, 1977. For that reason, 80- 85% of the products that Zara offers globally are relative standardized fashionable products. Creates value for the end customer — Zara tries to deliver the right product to the customer at the right time.
Zara Supply Chain Its supply chain is completely dissimilar from the other one. They have historical sales data on this kind of products and hence they can forecast future sales and take commitments on quantities to order long time before the sales in store. Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. They also take feedbacks from the sales advisors to understand more the trends. Deputy Chairman of the group has mentioned that as environmental issues are crucial to the global strategy of Inditex, they affix a strategic target to be implemented in all of its stores by 2020.