Zara Fast Fashion

748 Words3 Pages
Introduction: Zara the leading fast fashion low quality and affordable trendy brand owned by Inditex, are focusing on how they can improve efficiency in managing their store network through various possibilities such as; cutting down on personnel labor/payroll costs. If Zara cuts down on labor/payroll costs by having the company replace store personnel for third-party logistic providers they could create improvements to increase labor productivity in the stores. Cutting down on personnel labor/payroll costs could create various implications such as having the company stay successful and keeping profit high by maximizing sales. Having a strong emphasis on improving labor productivity could possibly hurt other aspects of the stores operations. Analysis: Zara is famous for the way its responsive supply chain can quickly deliver collections of highly fashionable products to meet ever changing customer demands. Zara has three independent product lines, which include women’s, men’s, and children. Zara produces new items and delivers them to its stores in less than three weeks, rather than six months for luxury brands. By producing and delivering merchandise quickly this allows the company to meet its customer’s demands within the season. Zara is extremely competitive compared to its competitors by producing 11,000 items compared to 2,000-4,000. Each season new collections are sent to the stores, each store receiving 12,000 units (8,000 for women’s, 2,000 for men’s’, 2,000 for children) in a one-week period. By having a large amount of merchandise shows that the sales associates are spending their hours sorting and organizing inventory. Zara’s emphasis on associates doing inventory and replenishment is having a huge impact on how efficient they are in managing their stores. Using these shift hours causes the employees to focus on the merchandise rather than the
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