Technoques and Systems Used Within Zara
Introduction
The essay is based on a case study which is related to the study of Zara. Within this essay it evaluates the production and logistics techniques utilised by Zara. The essay outlines the quick response (QR) and how it impacts the inventory levels and customer service. Hence the essay outlines systems used and how these help to utilise the competitive advantage within the clothing market.
Zara uses a vast number of production and logistics techniques which help utilise the competitive operations. These are flexibility, inventory, procurement, replenishment, integration and coordination. Zara is more flexible compared to its rivals. The use of "vertical integration becomes a distinctive feature of Zara's business model" (Anon 1, 2006). Thus Zara makes 40 percent of its own fabrics and produces 60 percent of its stock in-house. Along side QR Zara is able to respond promptly to ever changing fashion trends. Flexibility for Zara has become a competitive weapon i.e. "ability to produce a wide variety of products, to introduce new products quickly and to respond to the customer needs". (Russell. S. R, Taylor. W. B, 2004)
The integrated programme of market orientation and supply chain management gives Zara better visibility to carry out its activities. Nevertheless this helps to deliver a "rapid and flexible response to the actual and latent needs of marketplace". (Fernie. J, Sparks. L, 2004) Communication plays a crucial part of Zara's system reflecting the production and techniques. The level of communication which exists in Zara is affective i.e. "Zara operational procedure performance measures, and even its office layouts are designed to make information transfer easy". (Anon 2, 2006) In order for Zara to carry this out Zara enables systems in place that allow the communication of data flow easily, example of this is Electronic Data Interchange (EDI). Another communication system that Zara uses is the Electronic Point of Sale (EPOS), this is done by
The essay is based on a case study which is related to the study of Zara. Within this essay it evaluates the production and logistics techniques utilised by Zara. The essay outlines the quick response (QR) and how it impacts the inventory levels and customer service. Hence the essay outlines systems used and how these help to utilise the competitive advantage within the clothing market.
Zara uses a vast number of production and logistics techniques which help utilise the competitive operations. These are flexibility, inventory, procurement, replenishment, integration and coordination. Zara is more flexible compared to its rivals. The use of "vertical integration becomes a distinctive feature of Zara's business model" (Anon 1, 2006). Thus Zara makes 40 percent of its own fabrics and produces 60 percent of its stock in-house. Along side QR Zara is able to respond promptly to ever changing fashion trends. Flexibility for Zara has become a competitive weapon i.e. "ability to produce a wide variety of products, to introduce new products quickly and to respond to the customer needs". (Russell. S. R, Taylor. W. B, 2004)
The integrated programme of market orientation and supply chain management gives Zara better visibility to carry out its activities. Nevertheless this helps to deliver a "rapid and flexible response to the actual and latent needs of marketplace". (Fernie. J, Sparks. L, 2004) Communication plays a crucial part of Zara's system reflecting the production and techniques. The level of communication which exists in Zara is affective i.e. "Zara operational procedure performance measures, and even its office layouts are designed to make information transfer easy". (Anon 2, 2006) In order for Zara to carry this out Zara enables systems in place that allow the communication of data flow easily, example of this is Electronic Data Interchange (EDI). Another communication system that Zara uses is the Electronic Point of Sale (EPOS), this is done by