Business Processes: Zara
- Design and production
Zara designs all of its products through an integrated and controlled mechanism. Concurrent method is used in which designers, marketing team, procurement staff and even store manager work collectively .
- Procurement
Zara has a major portion of its procurement processes at its own hand. Most of the procurement is done in-house which reduces the time, cost and flow in the manufactured products .
- Inventory Management
Zara is well-known for keeping a very low level of inventory. This reduces its cost and space for unnecessary stuff .
- Low Marketing
The company is known for spending very less amount on its own marketing. The continuous change in display of items at its stores serves as main marketing technique .
- Information Technology
Zara has an efficient Information system that is reflected by the usage of smart computers by store managers and designers to send instant information to the head office and the factories respectively .
- Logistics and Distribution
There is a centralised logistics and distribution system at Zara which shows the efficiency of its supply chain management. The flow of stock becomes very quick from suppliers to stores .
Business Improvements: Zara
- Information Technology
Zara should focus on switching its POS from DOS to the Intuit-HP Retail Solution which is being used in industry. It should use industry based SAP which is versatile in its usage and compatibility .
- Diversified Operations
Zara can expand its operations other than Spain. The concentration in few regions would not increase its presence and revenues worldwide .
- Financial Position
Zara must have a look at its financial position in regions where dollar has decreased in value against Euro. This decline may cause dollar based manufacturing regions to cost more to the company .
Works Cited
Anonymous. (n.d.). Zara: IT for Fast Fashion. Victoria: Univeristy of Houston-Victoria.
Gallaugher, J. (2008). Zara Case: Fast Fashion from Savvy Systems. New York: Flat World Knowledge.
Kimiagar, S. (28, December 2008). Zara operation management, A business case! Retrieved October 05, 2013, from Royal Hunting: http://royalhunting.blogspot.com/2008/12/zara-operation-management-business-case.html
