Incorporating the horizontal structure for placing orders and deciding which items to push aggressively by delegating decision making responsibilities to store managers; 2. The lack of automation around forecasting and the disjointed fulfillment processes can also lead to very costly operations errors for the company as well.
They need a CIO, another major problem that will be discussed later. Size requirements were different the U.
Excerpt from Term Paper : Zara Case Analysis Zara: IT for Fast Fashion is a unique case study in that it powerfully illustrates how a lack of IT integration and process efficiency can over time force an organization into complacency, lowering the standards of performance due to a lack of real-time market and operations data and analytics.
Conclusion and Recommendations For Zara to upgrade the current system, I would recommend Zara to implement the change gradually. Possibly its most atypical strategy is its policy of zero advertising; the firm opted to invest a portion of revenues in opening new stores instead.
The product design was easy to copy. Analysis of the Company's Goals and Strategies The company's goals and strategies are all aligned to fulfill the original vision of the founder, which is to link customer demand to manufacturing and link manufacturing to distribution. Another benefit the new system can provide is the efficiency in matching the demand and supply at the order entry process rather than using the old batch process.
The current system is unable to predict the sales, plan for or estimate losses as the system is inefficient to match the inventory.