A number of lean techniques allowed Zara to achieve this objective. Tangible Costs Analysis Current system: IT For Fast Fashion. The only thing they can that establishes a basic IT system to keep their business on track. All of this will lead to increased employee satisfaction, higher efficiency, and enhanced goodwill.
The PDAs used for ordering are inconvenient to use and so, Zara should replace them with convenient equipment such as the PCs. Therefore, the ERP ystem of Zara not only helps their business work more efficient, but also offers lots of valuable information for analysis.
Their 11, new designs per year will not exist without IS.
The management surrounding their information systems group included no chief information officer and no formal processes regarding new IT investments or projects. Zara makes standardized and targeted use of IT McAfee, The store managers use the PDAs for ordering whose screens are small and incompatible, which can cause errors in the ordering system.
Zara has been successful to remain focused on its core fashion philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results. Their net margin in was BBC News [online] Available at: InInditex became the holding company atop Zara and other retail chains, and Jose Maria Castellano Rios joined the company.
As Zara has operations, worldwide managing accounting using the commercial available software is difficult. By implementing additional automation for the factories and distribution centers and by upgrading the POS software and eliminating the need for PDA devices, Zara will realize increased cost savings and increased productivity and efficiency of their current processes.
The stores managers has the most information, because they can directly send the customer feedback to the IS, and another point is stores managers decide the orders directly to the Zara headquarter, so the analysis will based on the different demand from different stores.
At Zara, non-essential capital expenditure was trimmed for the sake of crucial operational functions such as maintaining rapid manufacturing and distribution. I ne TulTlllment nas to matcn up a huge number of finished good and send to the right stores, so in their DCs have less labor working for match up, instead, more automation or computerization device will help them to finish these Jobs.
The difference between the value created by an activity and the cost associated with an activity is called margin. Through continual refinement, and application of lean principles to its core business, Zara made strategic decisions regarding how to allocate its capital expenditure in a manner that maximized customer value.
Zara uses only 0. Many areas of organization have been changing by IT, such as decision-making processes and communication area. The PDAs cause redundancy.
Currently, store employees can easily operate the POS system without worrying about the procedures. Speed and Decision-making Ortega and Castellano believed that Zara needed to respond quickly to the changing fashion trends, which were very hard to predict and hard to influence.
By processing all orders through Zara headquarters, upper management had the opportunity to see global trends and to plan their growth strategy accordingly. When orders were placed, sales managers had considerable control over what their store would receive, and this allowed Zara to customize their offerings to a diversity of markets.
Oct 26, · Many examples of the lean concepts above can be found in the case study titled: “Zara: IT for Fast Fashion”. Case authors Andrew McAfee, Vincent Dessain and Anders Sjoman describe how Zara's parent company Inditex, developed operational capabilities which exceeded those of competing firms such as The Gap and H&winforlifestats.com: E.B.
Holmes. Access to case studies expires six months after purchase date. Publication Date: June 25, InZara's CIO must decide whether to upgrade the retailer's IT infrastructure and capabilities.
The data from Harvard Business Review shows that Zara’s sale revenues Is aoout 3 Y/3M Euros (aoout 4 Inditex’s sale revenues at the beginning of (Mcafee, Dessain & SJoman, ).
The last update of Inditex official website shows that there are 1, Zara. Oct 26, · Many examples of the lean concepts above can be found in the case study titled: “Zara: IT for Fast Fashion”. Case authors Andrew McAfee, Vincent Dessain and Anders Sjoman describe how Zara's parent company Inditex, developed operational capabilities which exceeded those of competing firms such as The Gap and H&winforlifestats.com: E.B.
Holmes.Mcafee a dessain v and sjoman a zara it for fast fashion harvard business school