BVIMSR, MMS 2ND Yr. (OPERATIONS)
ZARA: RETAIL @ THE SPEED OF FASHION
Q.1.How does ZARA manages more styles?
Zara's success from the perspective of time-based competition. While most of people attribute Zara's time-based success to its extremely short lead time and regard Zara as a benchmark for speed
Managing more styles is possible for Zara mainly because of the shorter lead time (2-4 weeks) compared to industry average lead time of 4-12 months.
The reduction in lead time is associated with all activities involved in total process of getting final product from the state of initial idea generation.
We can distribute the Zara operations in following categories:
1. Idea Generation 2. Product design & approval 3. Sample or prototype Production 4. Approval of Sample 5. Manufacturing a. Cutting b. Stitching 6. Distribution
Now we will see how Zara managed to achieve the shorter lead time. On the basis of above areas 1. Idea generation : For Zara the strategy was not to create the fresh design it is all about following the trend in fashion faster i.e. Follow early. This it self reduce the time required for idea generation. Collecting the information on consumer needs, trends information flows daily and it is fed into database at head office designers check the database for these dispatches and sales number to get idea about the trends. Information technology helps this phase so that all data available at single source.
2. Product design
After the idea generation the product design is created in coherence with commercial manager and designer. The finalization of design is done by considering both functional department that is commercial dept and designer.
As most of the managers are located at Spain it is for them to come together for meeting and work in team. This not only helps to better product design