IT for fast fashion
TOPICS| PAGE NUMBER|
ZARA IT for fashion- A Background| 3|
Implementation of IS in designing| 3|
Implementation of IS in purchase| 4|
Implementation of IS in manufacturing| 4|
Implementation of IS in distribution system| 5|
Implementation of IS in retailing| 6|
Implementation Issues with People| 7|
Implementation Issues with Procedures| 9|
Implementation Issues with Devices| 10|
Implementation Issues with Software and Database| 11|
Zara IT for fast fashion back ground.
Zara is one of the six retailing chains owned by Inditex (Industria de Diseilo Textil) of Spain who designs, manufactures, and sells apparel, footwear, and accessories for women, men, and children through Zara and five other chains around the world. Zara’s success is based on a business system that depends on vertical integration, in-house production, quick response, one centralized distribution centre, and low advertising cost all of which made it so successful thus far. The following are the points that summarize the case Zara: It for fast fashion. * Zara’s POS terminals are currently being run on a DOS-based system (which is barely supported anymore) * The current culture places importance on human conversation-based fieldwork, intuitive Analysis, forecasting (via Commercials), and decentralized decision-making. * The Old World mentality of some Zara managers asserts that the old, but operational, system is not broken, and therefore, not in need of fixing. They are only half right. * Since the business model places an emphasis on a rapid response to trend-influenced customer demand and relies on no advertising, growth through IT-fused change contrasts with both the existing processes and the culture which made them.
Question (1): Discuss the case study as an IS practical implementation, showing its potential for supporting enterprise growth. (Consider the value chain)
Implementation of IS in designing
A new dress or fashion is created by Zara by taking ideas from each of the following 1) Major Fashion shows
2) Zara’s internal fashion designers
3) Inputs from store managers
4) Sales pattern analysis
A good IS can help in designing in the following ways:
The fashion designers of Zara used to closely follow the major fashion shows for being updated on the various patterns , trends , new concepts of dresses , colour combinations, styles etc. Designers were in position to predict the latest trends in fashion and they can design clothes predicting the future demand. With a good implementation of information system with regards to tracing of development in fashion industry the designers will be empowered to mix “n” match different clothes and create new styles. Zara does not entirely depend on its designers for ideas for new styles or trends. The store managers advice and inputs about the local tastes and preferences are also considered. Store managers can also store and share the local tastes and preferences of their clients and if they have any good ideas they can easily share it with the product managers. Another use of IS that it helps in analysing sales pattern. This analysis is useful in understanding what sort of clothes are selling in which markets. This helps in designing clothes based on local tastes and regional preferences.
Implementation of IS in purchasing raw materials
Purchase of raw materials in Zara is based on
1) Sales pattern
2) Gut feeling
3) Market trend
The major emphasis given by Zara is on the speed of identify the needs and the ability to cater to them quickly .In the case there was very less focus given on accurate forecasting of Raw materials rather the product managers were aware of what products were selling and what were not selling and the orders were placed with the suppliers from time to time basis based on intuition and the market feel.
Implementation of IS in Manufacturing