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Running Head: Case Study 1

Zara Supply Chain Management, Logistics, and Information Systems. Name Institution Professor Course Date

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Zara is among the largest worldwide fashion companies which originally belonged to Inditex, an international largest retail groups. The company opened its first store at ACoruña, Galicia, Spain in 1975. Zara had various styles like casuals, daily clothes, and formal clothes and therefore it was able to meet people’s preferences and choices with this collection of fashions. It has all levels of activity of fashion which include the design, production, logistics, and distribution. Zara is the most profitable and the most internationalized fashion retail. This paper discusses the Zara current information systems, strategies, and approaches for developing a strategic advantage via retail supply chain or logistics strategies (Tiplady, R., 2006). Zara has shown its success through the existing information systems. It relies on vertical integration, quick response, in-house manufacturing, low advertising expenses and a single centralized distribution Centre. The information systems are discussed as follows; Design- this helps the company in discovering the best design trends. The designers do an estimation of which design will have the best market through the collection of vital information like daily sales numbers. This real-time info enables the designers to make a decision on fabric, cut and colors when making modification on existing design. The period of time between design conception and arrival of clothes at Centre and eventually to the retail stores and placed on racks has been shortened by the IT team. It uses IS to track client preferences and sales. To determine what ends up on every store rack, the store manager leads the intelligence and gathering effort. There are Personal Digital Assistants who are used to collect customer input and get feedback on their preferences and issues. The gathered information is used by the company to plan for new fashion or improve the existing fashion. Distribution- the Company has a centralized distribution system. Most of its production is kept in-house and makes use of smart technology to gain a competitive advantage. The company does not outsource instead it runs all design, logistics,

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warehousing, and distribution. It produces and distributes in small batches, making use of computerized system the distribution takes 10 to 15 days. Pricing- Zara makes use of information systems for customer profiling, to do an analysis of market patterns and direct target. It makes a quick response to fluctuations in customer demands (Aftab, M. A., Yuanjian, Q., Kabir, N., & Barua, Z., 2018). Unlike its rivals, Zara has strategized to effectively expand its business to more than 77 effectively expand its business to more than 77 countries worldwide alongside the establishment of more than 5000 stores. This will increase its profits by 42% in the first six months. The company has also strategized in keeping a long-term relationship with customers, wholesalers, suppliers and other stakeholders. It has made major improvements in quality, the changes are as per the customer feedback (Rohwedder, C., & Johnson, K., 2008). Additionally, Zara has developed strategic goals so as to expand its business activities internationally. The goals include; 1.

Introducing new products to handle the customers’ requirements.

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Introduce changes to improve the production activities.

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Handle the information on the supply of products to the customers to various stores.

The competitors of Zara, GAP and H & M have worked hard to recapitalize profit share in the market but Zara has strategized to improve services and providing the best options to customers (Mierzejewska, J., 2017).

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References Tiplady, R. (2006). Zara: Taking the lead in fast fashion. Business Week, 4. Rohwedder, C., & Johnson, K. (2008). Pace-setting Zara seeks more speed to fight its rising cheap-chic rivals. Wall Street Journal, 20(02), 2008. Mierzejewska, J. (2017). Analysis and evaluation of marketing strategies for clothing companies in the example of Zara and H&M (Doctoral dissertation, Katedra Procesów Zarządzania). Aftab, M. A., Yuanjian, Q., Kabir, N., & Barua, Z. (2018). Super Responsive Supply Chain: The Case of Spanish Fast Fashion Retailer Inditex-Zara. International Journal of Business and Management, 13(5), 212. http://soft4inventory.com/blog/the-success-of-zara-technology-makes-it-possible/ https://www.ie.edu/corporate-relations/insights/zara-technology-and-user-experience-as-driversof-business/ https://www.reuters.com/article/us-inditex-technology-focus/zara-looks-to-technology-to-keepup-with-faster-fashion-idUSKBN1JB0HG...