Zara Case Study

 Zara Case Study Essay

Desk of Articles

Executive Summary3

Issue Identification4

Environment and Root Cause Analysis6

Alternatives and Options8



Keep an eye on and Control13


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Executive Summary

Salgado of the THIS Department of Zara features decided that he must just replace the present POS Software which is at present running on the unsupported DOS operating system. In doing so this individual has also chosen to upgrade the software and DETRAS Terminals to incorporate better inventory and sales management.

Yet , it is noted that the current system is operating quite well and he must ensure any upgrades do not have an effect on company performance, which is quite great compared to competitors; Gap, H& M and Benetton.

Salgado features outlined numerous alternatives or perhaps options intended for the up grade and offers further presented recommendations and implementation strategies. By putting into action this plan he must ensure it continues Zara's basic business design of require manufacturing division. Also associated with this business structure is the potential of the organization to produce vogue items based on demand to distribution in three several weeks must be taken care of.

Zara's accomplishment is based on a company system that depends on up and down integration, in-house production, speedy response, 1 centralized circulation center, and low advertising cost all of these made it so successful so far. Zara would not try to prediction clothing pattern per say but attempts to react quickly based on details from store managers. He must ensure the newest current system allows Zara to continue with its current accomplishment. Issue Id

Immediate Concerns

The main short-run issue facing Salgado is whether or to never replace the POS (point of sale) software. This software is at present running about DOS operating-system which has not really been supported by Microsoft for a number of years. Replacing the POS software program then goes hand in hand with should they also replace the POS terminals, which will be newer and gives more features. Systematic Issues

A few of the systematic and long term problems are directly related to instant issue from the POS terminals/software. Currently the Zara nor the parent business of Inditex have a IT (Information Technology) department supporting the businesses. The current DETRAS terminals/software can be user friendly and reliable as a result requiring negligible support. In the event that they change to new computer software and terminals will it be since user friendly and reliable. If this is not the case will more support be required thus needing an widened IT section or outsourcing techniques.

Another issue at hand can be stores don’t have an accurate products on hand system. As Salgado preserved " Having, 100% control is most time just too expensive. Being 95% right is pretty good, and quite often you don't need even more accuracy". The present system does not accurately trail inventory into the stores neither returns.

Along with the inaccuracies from the inventory program the current system does not allow internal communications between shops. This means the shops cannot check out current inventory at another store. There is no computer network connecting every single store and store does not have almost any computer other than the POS terminal and the PDAs. What this means is in order for a store to find out if another retail store has an item available they must call that store.

The present POS terminals have to be supported daily employing floppy discs, this then is used to tally up total product sales. Floppy dvds are now old and even in the year 2003 were on the way out. We were holding known to be untrustworthy and could easily be damaged.

Zara is also seeking to continue to grow especially in to Italy. Generally there current provider of DETRAS terminals says they will still supply these types of terminals since Zara can be one of presently there biggest clients. However " Salgado got nowhere when he had tried to include such...

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