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Zargist ics Team:

Blake VanderBerg - 821278942

John Whelly - 820501401Jessica Weingert - 820853059

Krisztina Virag - 821250982

Jenna Zucker - 820920437

Akwaugo Udenze - 821218781


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Zara is a Spanish clothing retailer

1700 stores

78 countries worldwide

Zara practicesfast fashion trends moves from the runway to stores within

weeks, as opposed to months.

Zaras supply chain has undergone tremendous changes in order to sustain its

competitive advantage in todays market

Zara has continually maintained its mission to provide fast, affordable, and

fashionable items


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Inventory Management Stock outs are not

uncommon

Short shelf life attracts morecustomers more often

Zara holds 6 days worth of

inventory, while H&M holds

52 days, and Spanish retailerCortefiel holds 94 days of

inventory


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Forecasting Extensive market research

Quick input and output

response Frequent new styles

Near-term forecasts

Short product life cycles to

reduce errors and improve

current products

Customer feedback


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Warehousing Stores are electronically linked to the companys headquarters

Logistics system is based on two core concepts: speed and

flexibility Currently building a new state-of-the-art warehouse and facility

complex in Zaragoza, Spain


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Customer Service

Founder: Amancio Ortega

Customer Service

Elements & Measures of Customer Service

Product Availability

Order Cycle Time

Logistics Operations

Response to Certain Events

Stock-outs

Extra Inventory

Future outlook


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Performance Measurement

Dedicated to creating time to market

efficiency

Order fulfillment and customer

satisfaction

Tight linkages between demand and

supply

Improve performance in accordance with

changes in demand

Customer loyalty and brand recognition

Expansion into a global market

EFFECTIVENES

S

EFFICIENCY

RESPONSIVE


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Technology

Competition: 2% of revenue and 2.5% workforce in IT

Zara: 0.5% of revenue and 0.5% workforce in IT

In store:

handheld PDA

bi-weekly order, communication with HQ, feedback from customers,

inventory.

In Store: DOS=old, slow.

Suggested: POS=speed, efficiency, connectivity.

WWW: Online stores open now. Better late than never.

iPad + Smart phone apps

In house: 200km tracks=60,000 items/hour


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Documents

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