Bus Optim
Zara also boasts impressive financial figures. Profits at
Inditex SA, the owner of the Zara retail chain, have jumped 64% in the first quarter of 2010, while the company’s stock has risen
43% in the past 12 months. Zara, now present in 77 countries, also recently launched online operations in 85 countries encouraged by the two million people who have downloaded Zara’s smartphone application in the first six months after its launch
(Bjork 2010).
5 flexibility princeples on which zara manufacturing build on
The second one is the capability to be flexible enough to
Competitive
advantage
&
Sustained profitable Decreased total costs growth
Decreased overall risks
Increased customer satisfaction
LIncreas.ed.ma.rke-t op-portu-nity-_>
Fig. 2. Benefits achieved from being fast
367
gybrif of agile and lean systems
Raw materials are procured through the company’s buying offices in the UK, China and
The Netherlands, with most of the materials themselves coming in from Mauritius, New
Zealand, Australia, Morocco, China, India, Turkey, Korea, Italy and Germany.
Approximately 40% of garments
-
those with the broadest and least transient appeal
-
are imported as finished goods from low
-
cost manufacturing centres in the Far East. The rest are produced by quick
-
response in Spain, using Zara’s own highly automated factories and a network of smaller contractors.
Material or fabric is also held in ‘greige’ i.e.undyed and unprinted and if demand for a particular garment turns out to be higher than expected then local manufacturers can quickly manufacture additional product.
Zara’s manufacturing systems are similar in many ways to those developed and employed so successfully by Benetton in Northern Italy, but refined using ideas developed in conjunction with Toyota. Only those operations which enhance cost
-
efficiency through economies of scale are conducted in
-
house
(such as dying, cutting, labelling and
packaging).
Inditex SA, the owner of the Zara retail chain, have jumped 64% in the first quarter of 2010, while the company’s stock has risen
43% in the past 12 months. Zara, now present in 77 countries, also recently launched online operations in 85 countries encouraged by the two million people who have downloaded Zara’s smartphone application in the first six months after its launch
(Bjork 2010).
5 flexibility princeples on which zara manufacturing build on
The second one is the capability to be flexible enough to
Competitive
advantage
&
Sustained profitable Decreased total costs growth
Decreased overall risks
Increased customer satisfaction
LIncreas.ed.ma.rke-t op-portu-nity-_>
Fig. 2. Benefits achieved from being fast
367
gybrif of agile and lean systems
Raw materials are procured through the company’s buying offices in the UK, China and
The Netherlands, with most of the materials themselves coming in from Mauritius, New
Zealand, Australia, Morocco, China, India, Turkey, Korea, Italy and Germany.
Approximately 40% of garments
-
those with the broadest and least transient appeal
-
are imported as finished goods from low
-
cost manufacturing centres in the Far East. The rest are produced by quick
-
response in Spain, using Zara’s own highly automated factories and a network of smaller contractors.
Material or fabric is also held in ‘greige’ i.e.undyed and unprinted and if demand for a particular garment turns out to be higher than expected then local manufacturers can quickly manufacture additional product.
Zara’s manufacturing systems are similar in many ways to those developed and employed so successfully by Benetton in Northern Italy, but refined using ideas developed in conjunction with Toyota. Only those operations which enhance cost
-
efficiency through economies of scale are conducted in
-
house
(such as dying, cutting, labelling and
packaging).