Topic > Zadar - 1753

Decision Making The decision making process in Zadar is very disintegrated. Operations such as ordering, fulfillment, design and production at Zara rely on important decisions made at a lower level by customer-facing employees. These decisions sometimes don't even require review by top management. A group of commercials decided which existing and new clothing items to order based on a particular store's sales. Another set of commercials determined the future production of a stock-keeping-unit (SKU) based on the balance between demand for clothing in stores and the supply of finished clothing from factories in DC. The prediction of the changing tastes of fashion-conscious young city dwellers was made by a group of commercials. These decisions have helped create variety in the design of new stocks. These decisions have also helped Zara to introduce new designer collections throughout the year depending on the current customer demand. This quick and autonomous decision-making approach is working wonders for Zara and seems consistent with its goals. Help Zara follow the JIT (just-in-time) technique. Since commercials are groups of employees who actually observe trends in supply and demand at a Zara store, they are in a better position to make quick decisions. This helps Zara accelerate the entire vertically integrated supply chain by making products available just in time for sale. A senior manager sitting far away will not be able to judge the store's requirements as well as an employee working in the store. I worked for Singapore Airlines as a flight attendant and as a customer facing employee we had the freedom to respond to a passenger's requests at our discretion...... middle of paper ......we would eat together when a store runs out a particular garment but the other store has it in stock.8) Stores also be able to communicate better and perhaps exchange their inventory when a particular stock is doing better in store and vice versa. This will help reduce production costs as the store that has sold out of its popular clothing items will not require more. ConclusionZara has an outstanding and unique operational strategy that helps them gain a competitive advantage. However, at the same time there is a lack of IT support. It needs a good IT strategy that supports their supply chain and improves their systems in order to support their operational strategy. A rapidly evolving retail company like Zara needs to strengthen its IT system by eliminating its outdated systems. This needs to be done soon before any other company overtakes them in this race.