Does Zara incur disadvantages from its 'fast-fashion' distribution system? Are these disadvantages offset by the advantages?
Zare have some disadvantages from its ‘fast-fashion’ distribution system but this does not incur disadvantages from its system. Zara produces smaller batches of items, this means that popular items can appear and disappear within a week. When items sell out, they are not restocked with another shipment. Instead, the next Zara shipment contains something new, something different. So, Consumers know that if they like something, they must buy it or miss out. Further, this system has more advantages ( see bullet points).
Disadvantages of fast-fashion
* smaller batches also mean exclusivity, a unique benefit from a mass-market retailer that draws young fashionistas through (Popular items can appear and disappear within aWeek)
Advantages of fast-fashion
* recognise and respond to fashion trends very quickly
* create products that mirror the trends
* get the products onto shelves much faster and more frequently than the industry norm * Zara is prolific
* Zara produces smaller batches of items. Thus, it assumes less risk if an item doesn't sell well. * Zara reaps the benefit of prices that average much closer to the list price.
How does Zara add value for the customer through major logistics functions?
The major logistic functions are warehousing, inventory management, transportation, and logistics information management.
Zara's warehouses are a vision of modern automation as swift and efficient as any automotive or consumer electronics plant. Human labor is a rare sight in these cavernous buildings. Customized machines patterned after the equipment used by overnight parcel services process up to 80,000 items an hour.
The computerized system sorts, packs, labels and allocates clothing items to every one of Zara's 1,000-plus stores...
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