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zarafinal-13227821063803-phpapp02-111201173032-phpapp02
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Transcript of zarafinal-13227821063803-phpapp02-111201173032-phpapp02
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Zargist ics Team:
Blake VanderBerg - 821278942
John Whelly - 820501401Jessica Weingert - 820853059
Krisztina Virag - 821250982
Jenna Zucker - 820920437
Akwaugo Udenze - 821218781
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Zara is a Spanish clothing retailer
1700 stores
78 countries worldwide
Zara practicesfast fashion trends moves from the runway to stores within
weeks, as opposed to months.
Zaras supply chain has undergone tremendous changes in order to sustain its
competitive advantage in todays market
Zara has continually maintained its mission to provide fast, affordable, and
fashionable items
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Inventory Management Stock outs are not
uncommon
Short shelf life attracts morecustomers more often
Zara holds 6 days worth of
inventory, while H&M holds
52 days, and Spanish retailerCortefiel holds 94 days of
inventory
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Forecasting Extensive market research
Quick input and output
response Frequent new styles
Near-term forecasts
Short product life cycles to
reduce errors and improve
current products
Customer feedback
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Warehousing Stores are electronically linked to the companys headquarters
Logistics system is based on two core concepts: speed and
flexibility Currently building a new state-of-the-art warehouse and facility
complex in Zaragoza, Spain
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Customer Service
Founder: Amancio Ortega
Customer Service
Elements & Measures of Customer Service
Product Availability
Order Cycle Time
Logistics Operations
Response to Certain Events
Stock-outs
Extra Inventory
Future outlook
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Performance Measurement
Dedicated to creating time to market
efficiency
Order fulfillment and customer
satisfaction
Tight linkages between demand and
supply
Improve performance in accordance with
changes in demand
Customer loyalty and brand recognition
Expansion into a global market
EFFECTIVENES
S
EFFICIENCY
RESPONSIVE
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Technology
Competition: 2% of revenue and 2.5% workforce in IT
Zara: 0.5% of revenue and 0.5% workforce in IT
In store:
handheld PDA
bi-weekly order, communication with HQ, feedback from customers,
inventory.
In Store: DOS=old, slow.
Suggested: POS=speed, efficiency, connectivity.
WWW: Online stores open now. Better late than never.
iPad + Smart phone apps
In house: 200km tracks=60,000 items/hour
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