ZARA 案例分析

The caseof ZARATheInditex isthe numberone on the listof retail group inSpanish,and isrankingthird globally,as well.It includes9brands ZARA、Pull andBear、MassimoDutti Bershka.Straparius.Oysho andso on.Among allbrands,ZARA isthe flagshipxof the Spanishretailgroup.It wasfound in the yearof1975which ownsover900branches in62countries atpresent.In theyear2004,its incomein theworld was€46billion,and itsprofit was€

4.4billion.What smore,its profitabilitywas

9.7%which washigher thanthat of the largestclothing chainin theUS.It wasconsideredto beof themost studyvalue inEurope.What makeZARA sotasty Well,for astart,it seemedto showhigher profitmargins thancomparable retailersand secondly,zthe trendseemed sustainable.Good betfor moreinvestors.In theyear2003,ZARA was the onlyfashion companywhich wasable todistributeready clothesto507chain storesin33countries allover theworld within15days.The mainreason whyit wasable todo sowas that the companytookextraordinary managementmethod andhad aspecial systemof productiondesign,order management,production,distribution andsales.•The whole supply chain management modeZARA succeeded in the strategyof providingclients withAffordable FastFashion.Researching theoperation modelof ZARA,we foundthat itbenefited fromitsexcellent modeof thewholesupplychainmanagementand thequick reactionofsupply chain,which wassupported bythe applicationof ITsystem.ZARA adoptedthe bandmanagement modeof Speediness,Small AmountandMulti-style.It introducednew productsby developingnew stylesin groupwhileensuring tokeep paceof fashionintheworld,and launchedonly severalproductsof everydesign infranchise houses.ZARA achievedthe goalof quickdesign,rapidmanufacture,fleet sellingand frequentupdate viacontrived stockout.Its franchisehousesupdated twice a week.•Trinitarian designand ordermanagementZARA sall products were designedby itself.A Trinitarianbusiness groupof300staffs wasfound inits headoffice whichconsisted withdesigner,professional inmarketanalysis andpurchasing staffs.40,000new products were designedeveryyear viatheir cooperation.ZARA chose10,000of themto launchto themarket.Unlike theircompetitors,the groupnot onlydesigned fashionduring nextquarter,but alsoupdated thedesign frequentlythis quarter.The companyesteemeddemocratic andcreative atmosphereinthedesign therewere noChief DesignerinZARA,and theaverage ageofthedesigners were26years old.ZARA encouragedtheirdesigners toget inspirationfrom varietyplaces,such asTrade CIA,the disco,sidewalks andfashion magazines.The designersof Mens,Ladies,Childrens Clothingworkedtogether ina modernconstruction,spreading overvarious halls.Each hallwasroomy enoughfor designerscommunicating withadjacent colleagues.Designers commonlystayed atone sideofthe hall,while purchasing staffs stayatanother sideand expertsof marketanalysis sitbetween them.Designers drewup thesketch inthe firststep.After that,they had adequatecommunication with the expertsof marketanalysis andpurchasing staffs.Theconsistent styleof ZARA was maintainedby thisstep.Then designersredrew themodifieddrawings withCAD toensure bettercollocation ofmaterial andcolors.Before startingthe nextstep,it wassignificant toestimate thecosts ofdesign andproduction,as wellastheprice.Next,the companychose askilled sewerto makeasample manually,displaying itin everycorner ofthehall,which madesure thateveryonecould putforward theirown opinionon it.Every expertin marketanalysisadministrated severalchain stores,and theykept closecommunication withoneanother.Their topicalways focusedon thesales,orders andnew designs.The finaldecisionswere madeby all the groupmembers.After makingthe unanimousdecision,production andpurchasingstaffsperformed theprocess ofordermanagement andcreated aplan ofmaterial purchaseand production.Theyassigned theproductive tasksand monitoredthe changinginventory aswell.Thatwas aprevention ofinsufficient productionor overproduction.•Vertical Integrationof manufacturingmanagementZARA owned22branches in Spain.The productionof50%products wascompletedin theirown factories.However,all thesewing workwas handedover tosubcontractors.Those factorieshad theirown profitcenter andwere managedindependently.The decisionwhether the productsweremanufactured bytheirselves orcompleted bysubcontractors wasalso madeby productionandpurchasing staffs.To guardthe dependenceon onesupplier,ZARA encouragedallthe suppliersto givereactions.The companyalso closelysupervised theirworkingprocedure toensure thequality ofthe productsat thesame time.When thesubcontractorsfinished theirwork,the productswere taken back to the sewingfactoriesof ZARAto beironed andexamined.Finally,the finishedproducts werepackedwell withplastic bagsand stickwith correspondingtags,transporting tothetransportation center.To guaranteethe higherquality ofthe products,ZARAadopted samplinginvestigations.•Until theLast Miledispatching managementAllthe productswere dispatchedfrom thetransportation centerinSpain.Thequantity ofdelivered goodswas dependedonthedemands.Generally,afterreceiving anindent,theproductsmight beshipped within8hours.Thetransportation centerhadafixed schedule.ZARA emphasizedthe significanceofspeed.A seniormanager incompany saidthat thedistance wasmeasured intimeinstead ofbeing measuredin length.What wasunimaginable of ZARAwasthat theratioof rightdeliveries was

98.9%.•One-stop salesmanagementGenerally,chain storessent indenttwicea week totheir headoffice andtheirproducts alsoupdated twiceaweek.The indentsmust besent ontime.ZARA wasseriouswiththetime management.In theirchain stores,if someproductswerenotsold outwithin twoor threeweeks,they hadto betakenbackto Spain.Under thiscircumstance,the frequencyof updatewas fairlyhigh,and someproducts wouldneverstock asecond time,which stimulatedclients makingdecisions atthemoment.They allknew ifthey missedthat theywould neverhave anotherchance.Thus,the inventoryofZARAis muchlower thanthe competitors.In myopinion,one thingenabled ZARAbecoming sosuccessful wasits speed.The companyhad stricttime management,which madealltheprocess effective.The exacttiming notonly succeededin transformation,but alsobeing afactor inavoidingthe risks.Another keypoint inits successwas theinventory management.The quickreaction indealing withthe unsalableproducts ensuredits lowcosts.Inaddition,Supplier managementenabled ZARArunning withthe highefficiency.Ithanded oversome businesstothesubcontractors,which shortenedits operationperiod.Finally,One-stop salesmanagement stimulatedthe consumptionandincreased thetotal revenueatthesame time.ZARAssuccess provedthat speediseverything.It sreally avaluable casefor usto study.。