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Group H
Ang Ruixian Chia Joo Leng Jasmine Nah Zheng Xiang Philson Tan Hong Chuan Julian Tan Jian Yue Wong Chih Yong U096845Y U097028B A0067379M A0067407A A0075054J A0075128E
Presentation Agenda
Introduction Competitors Updates Challenges Recommendations
Introduction
About Zara
Founded by Amancio Ortega
In 1975, the first Zara store was opened in La Coruna, Spain
Inditex was formed as the holding company atop of Zara, other retail chains & a network of internally owned suppliers (1985)
About Zara
Focused on opening stores in prime city locations Rapid response to market demands
Offer new clothing styles faster than its competitors
Inditex has become one of the world's largest clothes makers in the fast fashion industry 1,671 branches in 78 countries worldwide
1. Design
4. Retail
2. Production
Maintains control over its product design, manufacturing, distribution & retailing operations
3. Distribution
Competition
Competitor
Closest competitor Hennes and Maurtiz (H&M)
Founded on 1947, Sweden Innovating around design and distribution Supply Chain Phases
Design, Production, Distribution and Retail
Implications to Zara
No production outsourcing
Higher overall production cost
Implications to Zara
2 Large DCs located in Spain
Slower replenishment rate Unable to meet customers demand on time
Implication to Zara
Higher product cost due to higher production cost
Competitors
Challenges Zara faced against H&M
Higher production cost Slower replenishment rate Slower at meeting customer demand
Inventory Management
Implemented sophisticated inventory allocation model
Challenges Faced
Challenges
1. Limitation of company wide interconnectivity 2. Obsolescence and Limitation of Technologies used
Challenge 1
POS Terminals used in store were not interconnected via any in-store network
POS terminals/PDAs could not share information
Cannot determine order requirements accurately No comprehensive overview of the overall inventory and sales information
Sales tallied and audits done manually Slow to transfer data Inaccurate data and inefficient information transmission process
More time and energy spent on admin work Discrepancies between orders and sales
Challenge 2
DOS outdated, no longer supported
Any upgrades rendered DOS-incompatible No guarantee from vendor
Limited capabilities
PDA becoming obsolete
Zara disadvantage Store managers need more functions Business continuity at risk
Unable to find vendor to supply or service hardware Hard to find developers for outdated platform Limited capabilities
Our Recommendation
Run complete OS system
Huge potential
Benefits
Timeliness and Correctness
Instant access and updates Improve cycle time & efficiency
Employee Responsiveness
Reachability
Challenges Addressed
Obsolescence of PDA Systems
Technical support issues
Limited of Connectivity
Information Sharing Data Discrepancy
Feasibility Evaluation
Cost
Require customized apps
Time
Training for personnel
Our Recommendation
Intuit-HP Retail Solution
HPs POS Software Full fledged Mouse & Keyboard Industry-proven software
Benefits
Interconnectivity between stores Merging of data into one system
Precise measurement of stocks Global trends and developments
Challenges Addressed
Limitations of Existing Network
Automatically collect and process data Reduces need for calls & manual checks
Feasibility Evaluation
Staff adaptability to change
Need to ensure sufficient training Empower staff to fully utilize system
Conclusion
Conclusion
ZARAs competitor (H&M)
The need to stay competitive