The Spanish-based company prides itself on manufacturing up-to-the-minute trends that reflect what is hot right now. It only takes Zara two weeks to introduce a new product, and with 10, new designs each year, the company puts the "fast" in fast fashion, which is the process of quickly taking garments and accessories from the catwalk to stores in order to provide consumers with immediate trends they see on models and celebs.
One of the world's largest fashion groups, Inditex operates more than 6, store locations worldwide, and its brands include Zara its biggest divisionMassimo DuttiBershkaPull and Bear and Stradivarius.
The group owns the majority of its stores, and designs and manufactures almost all of its clothing.
Isla reported that RFID is already in operation at all of Zara's distribution centers and at more than Zara stores within 22 countries. He added that his company expects to have the technology installed at all 1, or so Zara stores bywith plans for a gradual rollout across the rest of its chains.
Zara sales associates use a handheld RFID reader to take inventory of goods at stores. Thus, when the DC sends one of its biweekly shipments of clothing to a store, an employee at that location can use a handheld reader to identify the arriving goods and verify the shipment's receipt.
The company is using passive RFID tags embedded in the hard plastic electronic article surveillance security tags it attaches to its merchandise. It facilitates inventory management; it facilitates replenishment of the clothes," Isla explained. If it is in the storeroom, then it can be given to the customer immediately.
If not, you can tell the customer whether the garment is available in a nearby store, or offer the possibility of buying the garment online, and they can choose if they want to have it delivered at home or the nearest store.
By year's end, the company also expects to have added Canada, Greece, Mexico and Romania to the list of countries in which it has partially deployed the technology.
To view a larger version of this chart, click here.Analysis. Inventory turnover is a measure of how efficiently a company can control its merchandise, so it is important to have a high turn.
This shows the company does not overspend by buying too much inventory and wastes resources by storing non-salable inventory.
Zara’s unique approach of human intelligence assisted IT solutions results in well-managed inventories, linkages between demand and supply, and reduced costs from obsolete merchandise; however, there is still room for improvement in their IT processes to realize more effective management of inventory .
We report the implementation of this optimization model by Zara to support its inventory distribution process, and the ensuing controlled pilot experiment performed to assess the model's impact relative to the prior procedure used to determine weekly shipment quantities.
(in millions of euros) ; Net Assets attributed to the parent company: 8, 7, 6, 5, 4, Net financial position: 4, 3, With designs that come and go as fluidly and naturally as models stride down the catwalk, Zara dresses refuse categorization.
From tasteful tulip dresses made from floral-printed satin to sassy fringe dresses that swish and sway to tailored jacquard jumpers with edgy zippers, Zara dresses reflect what's hot right this second.. Shop the large inventory of women's clothing including ZARA women's. Zara is able to maintain these high margins and capture significant value by (1) reducing the amount of inventory and the cost associated with holding excess inventory, and (2) selling less items on discount thanks to its flexible production process.