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Zara. Our Team. Presentation Agenda. Introduction Competitors Updates Challenges Recommendations. Introduction. About Zara. Founded by Amancio  Ortega In 1975, the first Zara  store was  opened  in  La  Coruna, Spain

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Zara

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Zara

Zara


Our team

Our Team


Presentation agenda

Presentation Agenda

Introduction

Competitors

Updates

Challenges

Recommendations


Introduction

Introduction


About zara

About Zara

Founded by Amancio Ortega

In 1975, the first Zara  store was  opened  in  La  Coruna, Spain

Inditex  was  formed  as  the  holding  company  atop  of Zara, other  retail  chains  &  a  network  of  internally

ownedsuppliers (1985)


About zara1

About Zara

Focused  on  opening  stores in  prime  city  locations

Rapid response to market demands

Offer new clothing styles faster than its competitors 

Inditexhas become one of the world's largest clothes makers in the fast fashion industry

1,671 branches in 78 countries worldwide


Zara s supply chain

Zara’s Supply Chain

Maintains control over its

product design, manufacturing,

distribution & retailing operations

Consists of 4 Phases:


Zara

Competition


Competitor

Competitor

Closest competitor

Hennes and Maurtiz (H&M)

Founded on 1947, Sweden

Innovating around design and distribution

Supply Chain Phases

Design, Production, Distribution and Retail


H m s supply chain

H&M’s Supply Chain

Production Phase

Outsource production process

60% in Asia, 40% in Europe

Low production cost to maximize profit at Asia

Implications to Zara

No production outsourcing

Higher overall production cost


H m s supply chain1

H&M’s Supply Chain

Distribution Phase

Distribution center(DC) located at every country

Daily replenishment to increase stock turnover rate

Able to meet customer’s demand on time

Implications to Zara

2 Large DCs located in Spain

Slower replenishment rate

Unable to meet customer’s demand on time


H m s supply chain2

H&M’s Supply Chain

Retail Phase

40% lower product selling cost compared to most competitors

Implication to Zara

Higher product cost due to higher production cost


Competitors

Competitors

Challenges Zara faced against H&M

Higher production cost

Slower replenishment rate

Slower at meeting customer demand


Updates on zara s scm

Updates on Zara’s SCM


Updates on zara s scm1

Updates on Zara’s SCM

Retailer’s Work Process

Distribution Network and Centre

Inventory Management


Retailer s work process

Retailer’s Work Process

Shifted to third party logistics providers

Shifted to factories

Enhancements made to PDA


Distribution network and centre

Distribution Network and Centre

Consolidated transportation across Zara’s different brands

DCs are equipped to handle small scale customer orders


Inventory management

Inventory Management

Implemented sophisticated inventory allocation model


Challenges faced

Challenges Faced


Challenges

Challenges

Limitation of company wide interconnectivity

Obsolescence and Limitation of Technologies used


Challenge 1

Challenge 1

  • Discrepancies between orders and sales data

  • More time and energy spent on administrative work


Challenge 2

Challenge 2


Mobile enterprise applications

Mobile Enterprise Applications


Our recommendation

Our Recommendation

Run complete OS software

Useful functions for SCM execution

Gradually Replace PDAs


Benefits

Benefits

Timeliness and Correctness

Instant access and updates

Improve cycle time & efficiency

Employee Responsiveness

Better “reachability”

Scalibility & Updates 

More functionalities


Challenges addressed

Challenges Addressed

Obsolescence of PDA Systems

Technical support issues

Limited Connectivity

Information Sharing

Data Discrepancy


Feasibility evaluation

Feasibility Evaluation

Cost

Requirecustomizedapps

Time

Training for personnel


Upgrade pos terminals

Upgrade POS Terminals


Our recommendation1

Our Recommendation

Intuit-HP Retail Solution

HP’s POS Software

Full fledged Mouse & Keyboard

Industry-proven software

Gradual replacement of DOS systems 

Phased Approach


Benefits1

Benefits

Interconnectivity between stores

Merging of data into one system

Precise measurement of stocks

Global trends and developments

Real-time information sharing

React faster to sales information

Improve decision making


Challenges addressed1

Challenges Addressed

Limitations of Existing Network

Automatically collect and process data

Reduces need for calls & manual checks

Increasing obsolescence of DOS

Modern, widely supported OS

Reduce reliance on sole vendor

Future-proof their operations


Feasibility evaluation1

Feasibility Evaluation

Staff adaptability to change

Need to ensure sufficient training

Empower staff to fully utilize system

Risks associated with change

Use phased implementation approach

Test stability on pilot stores


Conclusion

Conclusion


Conclusion1

Conclusion

ZARA’s competitor (H&M)

The need to stay competitive

ZARA’s SCM updates

Importance of continual innovation

Challenges & Recommendations

Innovations through cutting-edge technologies


Questions answers

Questions & Answers


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