ZARA, JIT fashion

소개글

Zara responds quickly to unpredictable demand in order to minimize stockouts, forced marketdowns, and obsolete inventory. Just-in-time low-cost fashion enables Zara to offer the latest fashions at reasonable prices to the customer.

목차

1. Primary Purpose
2. Manufacturing Focus
3. Inventory Strategy
4. Lead-time Focus
5. Approach to choose Suppliers
6. Product Design Strategy

본문내용

Zara JIT low-cost fashion

Primary purpose: Zara responds quickly to unpredictable demand in order to minimize stockouts, forced marketdowns, and obsolete inventory. Just-in-time low-cost fashion enables Zara to offer the latest fashions at reasonable prices to the customer.

Manufacturing focus: Zara deploys excess buffer capacity. Zara produces more than half of its own clothes, most of it at its ultramodern complex in Spain. Zara makes 40% of its own fabric and the pieces are sewn together at 400 cooperatives run by local seamstresses. Cons: Competitors such as H&M’s suppliers have factories with different specialties, which enable H&M to give customers the broad variety of clothes.

Inventory strategy: Zara deploys significant buffer stocks of parts or finished goods. Zara operates its own world-wide-distribution network. Controlling the whole chain of production gives the company flexibility that competitors don’t have. It also enables Zara to operate with almost no costly inventories; stores get deliveries twice a week and items rarely remain on the shelves for more than a week. Cons: Competitors such as Benetton have greatly differing projects and characteristics.

Lead-time focus: Zara invests aggressively in ways to reduce lead time. Zara takes only four to five weeks to design a new collection and then a week to make it. Within days, Zara stores in al over the world will be stocked and such a quick response enable react to trends quickly and allows Zara to reduce to a minimum the risk of making a mistake. The semiweekly deliveries of lead time help keep Zara stores seeming fresh.

참고 자료

Just-in-Time Fashion --- Spanish Retailer Zara Makes Low-Cost Lines in
Weeks By Running Its Own Show
Wall Street Journal New York, N.Y. May 18, 2001
Carlta Vitzthum