The majority of materials are manufactured and supplied internally: this fact reduces the dependence on external suppliers and some possible delays.
Exclusiveness of suppliers: many of the suppliers have Zara as their only or major client, so they are totally dedicated to it and so, they will follow the instructions given form it.
Outsourcing of sewing process: this task of the production is externalised but assuring the synchronisation with the general planning. This is possible because the outsourcing is diversified and the suppliers are physically near from Zara headquarters and they are totally dedicated to this task.
These influence can be observed on the following areas: a. CAD system in design and production phases: it indicates the profitability of new product designs and also permits to optimise the use of materials during production. Digital device to exchange market data: it is very useful for the company as it permits to quickly detect the market tendencies and anticipate to them.
Distribution centre automated system: it is used to improve efficiency on this task, saving money and time. In addition, they also try to promote the customers satisfaction. Specific initiatives such as the followings are implemented: a. Use of cross-functional teams during the designing phase: composed of market analysts, buyers and designers, to give a complete perspective of the appropriateness and viability of each model. Market analysts are responsible of regional stores: it makes possible to have a good and open communication between the headquarters and the stores.
Centralized decision making about marketing and price: it assures a unified strategy on these areas. High decision power is given to store managers: they are thought to improve the store performance according to the objective public they serve. In this sense, they receive a lot of training. Rewarding system: based on the store performance. The intersection areas with the highest relevance are marked with a star grading system. The same happens with the quick distribution system. First analysis is the one related with how comprehensive is the matrix in general.
It tries to measure how equilibrate are the different elements in the matrix and if there is any special gap or weakness. In this case it is rapidly observable that there is a good balance between the importance of the decision areas and their effects on the performance objectives. The second concept to consider is about the coherence of the decisions taken on the different areas. In general terms it is possible to say that there is a quite high coherence along the decision areas.
In fact, it is possible to observe that the process technology area is instrumentally used by the other three areas. There is also good coherence between decisions made about capacity and supply network, as the high rate of internally developed tasks is being reflected on the numerous facilities that the company has.
If one objection should be made, it would be in the relation between organization and development and capacity, because even if the company has stores in many different countries, the internal structure is very centralised in Spain, so the company risks to lose some market focus from other markets. Thirs analysis is about correspondence between performance objectives. Once again, the conclusion is positive, because even in the difficult relation between quality and costs the company is able to manage both aspects to optimise the final result.
In fact, what consumers value from Zara is the possibility of buying fashionable clothes at an affordable price. There is also a high positive relation between speed, dependability and flexibility, as the speed production process and the high regular distribution system enables the company to be flexible in introducing new models and increase the stock of the successful products.
Finally, the fourth step is the analysis of the criticalities. The critical intersections were already analysed when the star grading system was used. It shows which the most important tasks are in the operational scale of the company, and as a consequence, the ones where most of the resources and efforts are put.
This is a four stage process. The stages in this process are grid,matrix. Force them to consider a change of attitude. June 17, June 16, Language English. Skip to the end of the images gallery. Just download our designs, and upload them to Google Slides and they will work automatically. Amaze your audience with SlideTeam and Google Slides. When you download this product, the downloaded ZIP will contain this product in both standard and widescreen format.
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