Zara Case

Zara uses Toyota-designed logistics system and overnight parcel services to manipulate items stocked in the five-million-square-foot distribution center in La Coruña, or a similar facility in Zaragoza in the northeast of Spain. About two and a half million items were handled every week and none of them stayed in the warehouses more than 3 days.

To have the remote office locations have the ability to see current inventory of all products, order based on set inventory levels, and track who sells each sale

c) Store managers do not have visibility into regional demands but the commercial team does.

Assume HQ is responsible for replenishing inventory at the stores. a) What information is needed and how is it used to decide what to send to each store? b) Where does the information come from? c) Why didn’t we have each store decide what to order from the warehouse?

The business idea of Zara is to link customer demand to manufacturing, and to link manufacturing to distribution. And based on this general idea, Zara has several essential elements for its business model. First, speed and decision making, which means that in the external level, Zara need to respond very quickly to demands of target customers, and always keep in style. While for the inside, Zara treasure intelligence and judgment of common employees who enjoy a great deal of autonomy. Second, its marketing, merchandising and advertising strategy. Zara does not spend on virtually advertising, while it spends heavily on stores, and no selling online because of

Additionally, as expressed by Rebecca Ratner, Hsieh’s commitment to merging the workplace with social lives could present risk to the company in the form of unprofessional or inappropriate conduct that is not addressed properly.

Hbswk.hbs.edu. 2005. Zara's Secret for Fast Fashion - HBS Working Knowledge. [online] Available at: http://hbswk.hbs.edu/archive/4652.html [Accessed: 25 N

When offers of reduced pricing are accepted for equipment, meeting delivery expectations becomes an important part of enhancing the customer experience to maintain satisfied loyal customers. An inventory specialist in the current distribution center would be given the additional task of segregating and maintaining inventory levels to meet the needs of the customer loyalty department.

was trading for $.65 a share, and the board had been under intense pressure for months to show it was serious about turning the company around. If the stock hadn’t fallen so low, Charney might still hold the CEO job today.

Inventory management in terms of operational management is vital function for Dominos because of the industry and the product they are serving to their customers it will be required for proper standard

Inditex can do three things to solve their IT problem. First alternative: Inditex could maintain the original system. They will stock-up on POS terminals so that Zara can continue to open stores. The IT division will continue to write application to enhance its features. The benefit with staying with the current system is that it is stable and requires less IT support. Second alternative: Inditex could immediately begin investing in the new IT system that will provide up-to-the-second information to stores and headquarters, reduced floppy disk use, improve communication between stores, and allow addition of new features. However, the system will be a big investment, roughly 13 million dollars (see Appendix 1). As a third alternative, Inditex could slowly integrate the new IT system into their company by implementing a new system that add initial functionalities, such as DC inventory checking or route checking and new product announcements, than add more functionalities, such as POS transaction, “order”, fulfillment, and other transaction

Inventory control is a primary concern to prevent overstock and out-of-stock dilemmas. Overstocking products effects the budget negatively. Out-of-stock products essentially effects revenue negatively and hinders customer satisfactions. A business intelligence model that encompasses database functionality and a point of sale (POS) system features would remedy many of the inventory control downfalls.

The major underlying assumption is that legacy systems are holding up businesses. There is numerous business potential together with the operational value that is tied to legacy systems. The cost of transition to modern or updated systems is not just in monetary terms but also in time (Connolly, & Begg, 2010). There are mainly three ways of combating legacy systems; continue, upgrade or replace. The value proposition of each of the choices is the daunting task for most organizations. Can they take up the cost and effort of replacing a system? How long can they use the current system? Is an upgrade helpful and what are the changes that will come with it? The fact that business is perpetually changing and adapting to new requirements every

Tanpin Karin is a demand-oriented method of chain management successfully used by Seven-Eleven`s Japan. It`s credited to the company`s CEO, Toshifumi Suzuki, who started to develop it during the 70`s in response to a shift in the market from a seller`s orientation to a buyer`s drive. Until then, the inventory decision-making process was led by supply-chain management practices – items were seen as commodities and replenished according with the amounts that they had sold in the past. In contrast, the Tanpin Karin system changed the practice to an item-by-item store-level inventory analysis framework to fulfill decision-making based on human knowledge. Under this system, employees use POS data combined with customer demographics and other

Globally, retailing is witnessing epic transformations. The use of technology has fueled upheavals in the retail landscape that are revolutionary in scope, and unprecedented in nature (Leventon, Gupta & Magal, 2011). Technology has advanced from the automation of structured processes to systems that are truly revolutionary in that they introduce change into the fundamental business procedures, workflow and management of an organization. Numerous studies have shown that the employment of new or the updating of a business’s existing technology contributes to a firm’s competitive advantage, which in turn creates greater value for the customer (Altshuler, Gelb & Henry, 2010; Bharadwaj, 2000; Carr, 2003; Mellville, Kraemer, & Ghurbaxani, 2004). The main operational and human resource challenges for Fictitious Company that will be addressed from a management information system perspective in this report are: low levels of inventory, manual procurement procedures, access to new trends, and security and ethical breaches by employees.