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ZARA Information Systems

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Harmish Sampat
Harmish Sampat

Zara is a Spanish clothing retailer known for its rapid response to fashion trends. It operates over 531 stores globally using centralized legacy systems. While these provided data integrity and ease of training, they created bottlenecks and limited access. Zara recognized the need for faster processing systems to increase profits. It developed plans for a new distributed system using IT like ERP and RFID to achieve goals of short lead times, more styles, and reduced inventory risk. Key to Zara's success is its quick response supply chain and use of technology for market research, decision making, and inventory control.

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ZARA INFORMATION SYSTEMS Presented By: Palak Ahuja Ankita Wadekar Heet Rathod Aditi Gosavi Ajay Mule Saurabh Mantri Jhanvi Joshi Anmol Mishra Harmish Sampat
Agenda o About ZARA o Legacy Systems of ZARA o Advantages of Legacy Systems o Disadvantages of Legacy Systems o Need for a new System o Different Plans prepared for a new system o Revolutionary Systems Developed
• Spanish clothing retail group, started in 1975 • Operations into 45 countries with 531 stores located in more than 400 cities in Europe, America, Asia and Africa. • Has remained focused on its core fashion philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results About the Company
LEGACY SYSTEM
Advantages of Centralized Systems • Simple Architecture • Data Integrity • Ease of Training • Low Maintenance
Disadvantage of Centralized Systems • Highly Network Dependent • Bottlenecks • Limited Access because of single location
Need for a Change in Technology • Stagnant System • Need for Faster Processing Systems • Need to increase Economic Profits
ZARA- Goals Develop a system the requires short lead times Increase the number of available styles and/or choice Decrease quantities produced to decrease inventory risk These goals helped to formulate a unique value proposition: to combine moderate prices with the ability to offer new clothing styles faster than its competitors.
Strengths 1.Cost leadership strategy 2.Efficient distribution 3.Information technology 4.Fast delivery of new products ,and trends Weaknesses 1.Centralized distribution system 2.Doesn't spend much money on advertising 3.Zara only has one manufacturing and distribution centre in the world Opportunity 1.Global market penetration 2.Online market 3.Distribution centre in us Threats 1.Local competitors 2.Global competitors 3. Zara based in Spain and has a huge no of stores in Europe will dent in revenues. SWOT analysis
Key Success Factors for ZARA Business is built on quick response  Production responds to trends.  Deliveries are twice weekly, unlike most of the competitors weekly schedule. KSFs:  Market Research  Ready raw material base  Multi-functional quick decision making  Vertical integration to ensure control over supply chain, and proximity.  Technology  Cost Control, despite flexibility  Technology and Infrastructure
SCM of ZARA
Information Technology @ ZARA • DBMS Centralized System before, now it is Distributed System • ERP SAP , People Soft • RFID Barcode detector
Information Technology @ZARA • The blend of technology Strategy enabled ZARA to break all the rules in the fashion industry • Zara’s store managers leads the intelligence gathering efforts that ultimately determines what ends up on each stores rack. • ZARA uses PDA’s (personal digital assistant) to gather customer input • PDA’s are also linked to stores POS system, showing how garments ranked by Sales • Zara’s Staff regularly take feedback from customers on what they would like to see more like colour, design, etc.
ZARA Information Systems
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ZARA Information Systems

  • 1. ZARA INFORMATION SYSTEMS Presented By: Palak Ahuja Ankita Wadekar Heet Rathod Aditi Gosavi Ajay Mule Saurabh Mantri Jhanvi Joshi Anmol Mishra Harmish Sampat
  • 2. Agenda o About ZARA o Legacy Systems of ZARA o Advantages of Legacy Systems o Disadvantages of Legacy Systems o Need for a new System o Different Plans prepared for a new system o Revolutionary Systems Developed
  • 3. • Spanish clothing retail group, started in 1975 • Operations into 45 countries with 531 stores located in more than 400 cities in Europe, America, Asia and Africa. • Has remained focused on its core fashion philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results About the Company
  • 5. Advantages of Centralized Systems • Simple Architecture • Data Integrity • Ease of Training • Low Maintenance
  • 6. Disadvantage of Centralized Systems • Highly Network Dependent • Bottlenecks • Limited Access because of single location
  • 7. Need for a Change in Technology • Stagnant System • Need for Faster Processing Systems • Need to increase Economic Profits
  • 8. ZARA- Goals Develop a system the requires short lead times Increase the number of available styles and/or choice Decrease quantities produced to decrease inventory risk These goals helped to formulate a unique value proposition: to combine moderate prices with the ability to offer new clothing styles faster than its competitors.
  • 9. Strengths 1.Cost leadership strategy 2.Efficient distribution 3.Information technology 4.Fast delivery of new products ,and trends Weaknesses 1.Centralized distribution system 2.Doesn't spend much money on advertising 3.Zara only has one manufacturing and distribution centre in the world Opportunity 1.Global market penetration 2.Online market 3.Distribution centre in us Threats 1.Local competitors 2.Global competitors 3. Zara based in Spain and has a huge no of stores in Europe will dent in revenues. SWOT analysis
  • 10. Key Success Factors for ZARA Business is built on quick response  Production responds to trends.  Deliveries are twice weekly, unlike most of the competitors weekly schedule. KSFs:  Market Research  Ready raw material base  Multi-functional quick decision making  Vertical integration to ensure control over supply chain, and proximity.  Technology  Cost Control, despite flexibility  Technology and Infrastructure
  • 12. Information Technology @ ZARA • DBMS Centralized System before, now it is Distributed System • ERP SAP , People Soft • RFID Barcode detector
  • 13. Information Technology @ZARA • The blend of technology Strategy enabled ZARA to break all the rules in the fashion industry • Zara’s store managers leads the intelligence gathering efforts that ultimately determines what ends up on each stores rack. • ZARA uses PDA’s (personal digital assistant) to gather customer input • PDA’s are also linked to stores POS system, showing how garments ranked by Sales • Zara’s Staff regularly take feedback from customers on what they would like to see more like colour, design, etc.