Zara Case Study

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| Case 1 – Module 1 – Supply Chain Management | ZARA, IT for Fast Fashion | | Executive Summary Over the last few years, my colleague, Sanchez and I have had a considerable number of debates and discussions over the point of sale (POS) terminals used by Zara stores and whether or not they should be replaced? Sanchez, as you may or may not be aware, is the technical lead for the POS systems at Inditex. The POS terminals application runs on the DOS operating system and this has been a concern for sometime; as DOS is no longer supported. The POS terminals have not been upgraded in the last ten years and in my opinion this has the potential to become a serious problem for the retail stores. The PDAs have stayed fairly current and have the potential to be replaced with the upgraded POS terminals. Inditex prides itself on closing the communication loop between the end users and upstream operations of design, procurement and distribution as quickly and directly. The solution recommended in this report will take huge steps in making this happen. It is by no means meant to replace the verbal communication that occurs within Inditex and if anything it will enhance it as routine information will be transferred electronically and discussions can focus on strategic initiatives. After considerable analysis and discussion I am prepared to make the recommendation to move forward with upgrading the current POS terminals in all the Zara stores. There were several possible alternatives however in keeping with Inditex’s goal of providing efficient technological tools to its employees the approach recommended will result in porting and upgrading the existing application, improving the inventory functionality, eliminating the PDAs and set up wireless networks in all the stores. Over time we will also be looking at internet functionality. This
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