Zara Fast Fashion from Savvy Systems 11 29 2012 Inventory death Contract manufacturing lowering costs at a high cost to society Zara uses personal digital assistants to gather customer input and feedback o Links to the store s point of sales system Design many up coming designers for the 30 000 items they produce per year Manufacturing having locally targeted designs o Can twee orders in as little as 10 days o Take 3 weeks to get items from drawing board to stores Vertical Integration firms own many layers of its value chain stores o 60 of merchandise produced in house o use data to determine what items should be in what o 40 of fabric made by dying other fabric o clothing comes undyed so can be easily changed o no item stays in production for more than 72 hours o clothes come pre ironed and tagged so people don t take inventory o trucks and planes coordinate with shipments Zara stores differ in each area o New products on black hangers old ones on wooden Short shelf life low failure Info systems software used to schedule staff based on stores forcasted sales volumes with more staff at peak times Problems for Zara o Euro becomes weaker than the dollar o Either of their storage systems break down Zara in Europe 40 cheaper than in US
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