Zara case study operational management

All the interviewed subjects were selected among those who were familiar with the brand and purchased at least one item from Zara during the last six months as inclusion criteria.

This technology contributes without doubt to ameliorate the responsiveness of ZARA: But it also avoids build-up of large quantities of unpopular stock. The company spends less than 0. Zara seems fully aware of the adage: Which also means that employees must be trained in order to use the new manufacturing techniques, which again leads to increased costs.

The main objective of such data collection was to get the brand feedback and reputation. Hence it can be found that the group is heavily dependent on Spain and the European markets for its revenues.

Designers input the designs patterns into CAD systems which automatically feed into the cutting machines in the factories ensuring the required quality of outputs and having a minimum fabrics waste.

This large and high-tech facility also has extra capacity on hand to enable Zara to react to weekly and monthly demand fluctuations.

The store manager we met at Zara was dressed in a fashionable way. Coupled with this, is their keen eye for discovering new fashion trends and translating these trends from the catwalk to the high street, both quickly and affordably. What are the challenges that Zara faces?

Securing a foothold in as many markets as possible with the intended outcome of building brand awareness and an increased market share has resulted in Zara developing their brand, launching Zara Home.

People are highly motivated which reflects Zara HR policy. A point-of sale POS system is used in the stores and the information gathered is sent to Inditex.

A high-tech mobile tracking system speeds up the distribution system by proceeding high numbers of garments in a short period of time, thus minimizing intervention of labor force while increasing productivity.

Opting for a strategy of minimal advertising provokes the consumer into having to visit their stores. Zara plans the design and production in a unique facility, Inditex headquarters in La Coruna, where most of the output is produced with an efficient structure and coordination of equipment and staff.

To Americans, it is a company that is just getting its feet wet in the American market. Also the subjects were always allowed to select more than one box in the questionnaire.

Case Study of Zara: Use of Technology to Improve Operational Responsiveness

There are two orders per week from each store on specific days and hours, with shipments in La Coruna usually prepared overnight.

Operations management is a vital part of an organization to achieve success because it includes that activity of managing the resources to produce and transfer products and services Slack, Chambers and Johnston Case Study of Zara: Hence their superior supply chain management enables the retailer to deliver goods within 24 hours of the receipt of order at its European stores and 40 hours at its American and Asian outlets.

As garments did not stay for a long time in the warehouse, the company is able to cut down storage costs. A great deal of focus in operations is on efficiency and effectiveness of such a process.

Concerning Zara case study, the transformed resourced refers to the raw materials purchased ie.

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The average age was The JIT system allows ZARA to improve qualityto diminish manufacturing time, to eliminate wasteto increase productivity and to have better relationships between suppliers, thus improving its overall responsiveness.

It is interesting to know that Zara can get the product from the idea to the store in15 days time, where the industry standard is 6 months, the design and production process is very efficient and harmonized due to the use of the different methods that suites their line of business and set new model to look for.Case study Zara 1.

ZARA is a Spanish clothing and accessories retailer based in Arteixo, Galicia. Founded in 24 May, by Amancio Ortega and Rosalía Mera. Zara needs just two weeks to develop a new product and get it to stores, compared to the six-month industry average, and launches around 10, new designs each year.

Zara was. Zara Case Study Name Academic Institution Zara Case Study Executive Summary This case study (Ghemawat, Nueno, & Dailey, ) of the Spanish retail apparel company Zara, one of the six retail brands owned by Spanish company Inditex, focused on a number of issues confronting the retailer.

ZARA’S OPERATIONS STATEGY, A CRITIQUE OF A BUSINESS CASE. agronumericus.comtive summary. Operations management is in regard to all operations within the organization responsible for creating goods and services that organizations pass to their customers.

Case Study of Zara: Use of Technology to Improve Operational Responsiveness

A case study on Zara’s Operation Management Strategy 1 Mohammed Mansur Rashid MBA Term –V (weekend batch) ZERO TO ZARA Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.

Zara operation management, A business case! Tuesday, September 2, Zara operation management, A business case! 1- Executive Summary Operations management is in regard to all operations within the organization related activities including managing purchases, inventory control, quality control, storage and logistics.1/5(1).

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation.

Zara case study operational management
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