Zara Outline

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CURRENT SITUATION

Goal: ZARA’S goal is to respond quickly and accurately to shifting costumer demands. In order to do this ZARA establish 3 processes.

1. Ordering: Every store places an order twice a week to La Coruña. The order includes replenishment of existing items and initial request for newly items.

• The store manager determines the replenishment items, walking around the store and counting the garments and talking with sales people. THEY CAN NOT LOOK UP THE INVENTORY BALANCE IN ANY COMPUTER IN THE STORE. So they can just determine this by walking around.

• Managers can look for the newly available garments by consulting a hand held computer that was linked each night with the information system in La Coruña.

• 24 Hours before the deadline to place the order, the store receive an “Offer” that is a form to fulfill with its requirements. So the manager divides the offer in to segments and transmited to each section for them to fill it out. Then the manager puts the order together and sends the order to La Coruña.

2. Fulfillment: Shipping the clothes to each store is handle by another team of commercials. They match the supply of clothes coming to the distribution center (DC) with the demands of each store.

• When demand was higher than supply then the commercial had to make a decision about which stores will get the available inventories and which would not. The team does that looking which store had had more successful selling the item.

• These commercial also work with the product managers to determine the quantity to produce of certain item. They will try to increase production as soon as possible if demand was higher than the supply.

• The shipment usually takes one or two days after the order was placed. THERE IS LITTLE INVENTORY. The goal was to ship what the store need and when it needs it.

3. Design and manufacturing: ZARA introduce new collections at the star of the fall/winter and...
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