Business performance improvement: The Zara process
- Presentation of the ZARA company.
- Key dates.
- Key figures.
- The competitive advantages.
- Presentation of the ZARA process.
- Diagram of the D-15 model.
- Creation and design.
- Confection of bagged cut pieces.
- Production, distribution and retailing.
- Possible weaknesses of the process and identified solutions .
- Strong points of ZARA.
Nowadays, taking all brands into account, the INDITEX parent company accounts for more than 2 900 shops in 62 countries and 58 000 employees all over the world. In the same way, the number of ZARA shops is about 930 all over the world out of which 91 are in France. In 2005, its turnover was 6 741 million Euros, that is to say a growth of 21%. And it was multiplied by 2 in the next four years. 57% of the turnover is made outside Spain. One of the big differentiations between ZARA and all their competitors is that the company designed all its products itself. The company has a clear advantage with the "low" cost and the quality of the products. ZARA?s strategy required generation of great deal of products variety and a strong influence of the fashion world.
[...] ZARA ensures the quality of the products with labour laws. All the pieces (sewing items) are inspected by machines and by hand. The products are finished when they are in plastic bags with proper labels, then, they are sent to the distribution centre. Distribution After the stage of production, all the products pass through ZARA's distribution centre in La Coruña, where they are packed (in boxes or on racks for hanging clothes) and classified according to their country of destination. [...]
[...] This part of process is the most important because thanks to it all the system of production can start. Confection of bagged cut pieces The first step is the creation of samples by designers and the meeting with staff to give the first decision. Thanks to this decision, the buyer can send his demand to the suppliers and create the production planning. With the merchandise, the production of patterns can start in the ZARA's factories. The buyers manage procurement and production planning; they plan requirements, monitor warehouse inventories and allocate production. [...]