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Zara Operations Management

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Zara Operations Management
Executive Su Zara is a Spanish clothing and accessories retailer based in Arteixo, Galicia, and founded in 1975 by Amancio Ortega and Rosalía Mera. Zara is a chain of stores Belonging to the Spanish fashion group INDITEX founded by Amancio Ortega Gaona. It is the company's flagship chain and is represented in Europe, America, Africa and Asia with 1412 stores in 69 countries, 324 of them in Spain with the headquarters in La Coru;a. During 2007 it opened 560 stores across the group. Zara is committed to satisfy the desires of its customers by continuously innovating the business operations to improve the experience. The ability to offer new clothes styles faster than its competitors is KEY to Zara’s market position. It offers the latest fashion in medium quality at affordable prices. It has been very successful in doing so with short cycle time, small batches per product, extensive variety of product every season and heavy investment in information and communication technology. Zara has segmented the production line into 3 categories; women the strongest target(78%) men and children. The company has set 3 goals for its operations. To develop a business within a short lead time, decrease quantities produced to decrease inventory risk and increase the number of available styles and choices.

INPUT OUPUT DIAGRAM
In the case of Zara the inputs of the organization are comprised of the raw materials, such as the fabrics that after design and manufacturing-retailing will produce the garments, information such as products protocol, human resources such as the designers that has the skills and knowledge to produce the garments. The transformation process consists of the manufacturing and services operations that are necessary to transform input into output.

PERFORMANCE OBJECTIVES

Production
From conception to distribution, Zara only uses six months by maintaining production, design and distribution processes in-house which enables its business model to respond


References: Amit, R. (2010), "Business Model Innovation: Creating Value in Times of change", IESE Business School-University of Navarra, vol. 1, pp. 1-15. Pearson, A. (2010), "The Story of Zara – the Speeding Bullet", Unique Business Strategies, vol. 1, pp. 1-3. Luo, D. (2010), "How to manage a brand to be strong: a study of Zara ", University of Nottingham-MSc International Business, vol. 1, pp. 1-78. Ferdows, K., Lewis, M., Machuca, J., (2004) Christopher, M. (2010). Logistics and Supply Chain Management, 4th ed. Prentice Hall. Ferdows, K., Lewis, M. A., & Machuca, J. A. (2005). Zara 's Secret for Fast Fashion. Havard Business School Working Knowledge
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