von Juan Ayala Vor 5 Jahren
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My name is Juan Ayala (IMBA program, J3 Section) and I have chosen ZARA as the company for my project for several reasons.
I am a big fan of Armancio Ortega, a person who has become from humble beginnings to become one of the richest man in the world and an impeccable example of being an entrepreneur, even reinventing one of the most classical industries in the world by inventing Fast Fashion, an example of how Innovation can break even the most traditional concepts, while keeping values as humbleness and respect.
I am a regular client of ZARA, buying many times throughout the year due to its versatility of style and every time I shop there I am captivated by the logistics, apparel and store designs. Through the School I have learned about ZARA in many cases and I want to further learn more about the OPERATIONS MANAGEMENT of this company
ZARA has become the King of Fashion by applying the following lean tool kits derived from TOYOTA
ZARA uses RFID technology as a KANBAN model by restocking supply constantly with the use of IT. Hencre creating a TRIPLE A SUPPLY CHAIN with agility, adaptability and alignment, creating a small batch inventory in store and reducing the bullwhip effect up the supply chain.
TRIPLE A SUPPLY CHAIN
AGAILITY ADAPATABILI Y ALIGNMENT
VISIBILIDAD Y TRANSPARENCY
INVENTARIOS EN TIENDA SEAN PEQUENO
EN TIENDA NO TIENEN ESPACIO EN ALMACEN Y LOS PEDIDOS REDUCEN BULLWHIP EFFECT
https://www.youtube.com/watch?v=CEXpuJmBxN8
RELACIONAR ANTES DE SACAR UNA NUEVA PRENDA SS11 BREAKING BUSINESS SILOS SOLO DISENAR LO QUE SE VENDE SS12 DESARROLLO NUEVOS PROD.
Through its ‘Just in time’ or Lean business model, ZARA breaks the fashion supply chain rules by holding low stock and updating its collections continuously. Twice a week, at precise times, store managers order clothes, and twice a week, on schedule, new garments arrive. To ensure this happens, ZARA controls more of its manufacturing than most retailers.
New designs are can arrive in store within fifteen days, which means that ZARA can respond to its customer demand by producing more of its popular products and disregarding less popular items.
In the words of TOYOTA it means producing "what is need, when it is needed in the amount needed"
ZARA has focused extremely in using the TOYOTA procedure of reducing waste. In the fashion industry many products fashionable for a certain time, creating a big risk for the company in terms of inventory and profit. Zara creates lines with small batch systems to create scarcity, reduce inventory risk and increase sales as one item you might really like will be out forever from one month to another creating a sense of urgency in the shoppers explained in the intro video by having shoppers visit stores about 17 times per year compared to 3-4.
ZARA was designed from day-one to be responsive and agile. Rather than outsourcing to Asia, ZARA uses a network of automated factories in Spain and over 300 small finishing factories in North Africa and Turkey to constantly create unfinished products.
When a new design has been approved, the unfinished products are pulled, sent to the finishing shops and turned into products that are ready to shipped in as little as 24 hours to Europe, and in 40 hours to the Asian and North American markets.
Zara is approximately four-times more profitable than the average retailer due to high-margins and reduced inventory risk.
BANGLADESH FACTORY
QUE APRENDIERON NUEVOS METODOS Y SAFETY
Zara uses a push based model which means factories push out product to stores which is then sold to consumers; there is no customization or products being made to order. However, while the model is still the same on the surface behind the scenes it is highly integrated.
Zara does not have to commit fully to a season, rather opts to line and cut lines in the process depending on what is demanded by the customers
Article illustrates the connection between a pull system and ZARA's JIT production
ZARA is going one step further in order to solve their Customer Experience becoming pioneers by applying tech in retail. Nowadays, Customer want the whole shopping experience, not just to buy a product and tech is a great way to provide an Excellent Customer Service. Please read the article stating how ZARA is applying Checkout Self Service Approach as younger generations look to avoid contact with people nowadays when shopping thus reducing waiting time with no queing, their click and collect & fitting room tech plus the use of augmented reality. The future is hybrid (Tech + Traditional).
ZARA has evolved into a new Marketing Model of the future. Experience replaces product,Exchange is the new price, Evangelism is now promotion and every place is the new place.
By applying these new concept ZARA is focusing on becoming a Customer Centric organization by bringing people in for a Customer Experience instead of pushing people out, creating highly engaged interactions with customers
CUSTOEMR EXPERIENCE
EMPRESA NYC ALQUILA ROPA
BINDER, RECOMPRA TU ROPA
CIRULAR ECONOMY: DESIGN FOR ALSTING
IKEA SUSTAINBIALITY: SECTOR ASOCIADO CON BUILDING A RESILIENT SUPPLY CHAIN, BANGALADESH ZARA MURIERON 1000 PERSONAS QUE SE APRENDIO DE ESO, CODIGO DE CONDUCTA
ZARA hires architects and designers to formulate every aspect of pilot store design from decor, lights, music, ambience and clothing positioning.
The article illustrates how everything is carefully planned in the stores to make the shopping customer experience more effective.
An effective store design is the key to foster a relationship with customers and ZARA does not invest in Marketing, instead it focuses the uso of that money in store locations in prime locations of urban centers in the world and a captivating store design and Experience.
Although it sounds superficial, most of humans make a decision whether they like someone, something or in this case a store in a time lapse of 10 seconds. ZARA is creating these new pilot tests in order to capture
LINK CON USER EXPERIENCE
VENTA ONLINE ACERTAR CON LA TALL Y DISMINUIR REVERSE LOGISTICS, % LLEGA HASTA EL 10%
PROBADORES INTELIGENTES
MASS CUSTOMIZATION ES UN RETO
3D PRINTING IMPRIMIENDO ROPA
ZARA 3D PRIONTING
ZARA uses their main headquarter at La Coruña exporting to 96 countries around the world. Many of their manufacturing units are produced within a 20 minute drive from design team, product developers and business management. All stores around the world receive the same products under the same time by the application of lean tools with a centralized system.
This model requires
Please proceed to Vertical Integration and Supply Chain Management & Zara masterfully pulls this off through its vertical integrated, highly centralized operating model
UNA FRASE Y COMPRARLO CON MODELOS DECENTRALIZADOS EN ESTA INDUSTRIAS H & M VS ZARA.
One Piece Flow is the movement of a product, one piece a ta a time through a production process. After a manager places an order based on customer demand a product is ready to be picked packed and ready to leave the the distribution center in La Coruna, due to its centralized system the product can be shipped anywhere in the world in 48 hours, thus reducing wasteful activities and being AGILE.
The textile industry is the second most polluted to the environment. ZARA has pledged to reduce pollution but can ZARA be fast fashion and sustainable? Companies nowadays need to be in the center of Environmental, Social and Economic causes. ZARA is applying a more circular economy model
https://rctom.hbs.org/submission/stylish-and-sustainable-can-zaras-fast-fashions-be-both/
ZARA has pledged to create all of its shipping boxes from 100% recycled material further saving 21 k trees and reducing CO2 Emissions. All of the boxes that reach ZARA has been used approximately 5 times before being recycled and the company keeps using them until it can't be done and then recycling the boxes for new purposes creating a new green recycling supply chain model.
The company has partnered with 4 artists to create promotional videos of additional uses of boxes, expressing creativity in sustainability. The following is a short clip of the campaign
ZARA is adopting a circular economy initiative with their JOIN LIFE Campaign by recycling the clothes customers don't want within their company. In Spain, Customers can even call ZARA to have their clothes be picked up from home to recycle hence to create new pieces from your previous clothing materials.
The “eco-store” aims to redesign ZARA stores in an eco-friendlier way. A flagship of this concept opened in New York in May 2016 (Illustration 1). An eco-store consumes 30% less energy and 50% less water compared to a traditional Zara store and qualifies for an official governmental certification. ZARA aims to have "Eco stores" in palce by year 2020
MUY PERSONAL,
Introductory video explaining how ZARA created a new business model (entering and creating a Blue Ocean) in the retail industry regarded as "Fast Fashion" mainly due to their Operations Management infrastructure.
Zara’s success story shows the strength of its operations. Its cross-functional operations strategy, coupled with its vertically integrated supply chain, enables mass production under push control, leading to
well-managed inventories, lower markdowns, higher profitability, and value creation for shareholders in the short and long term.
PORQUE LO ELEGI
https://www.youtube.com/watch?v=I8_gmYNCQ1g
BLUE OCEANS can be found in the same industry by reinventing the wheel. Zara is to revolutionize the whole shopping by creating a new business model with the store of the future with its first Beta testing in London's Westfield Mall
The steps applied for Operational Innovation are the following:
1) Select area to improve
2) Establish ambitious but real goals
3)Find out success models in other sectors
4) Identify barriers
5) Transform a special situation
6) Rethink process and Kaizen (continuos improvement)
Short Clip showing whats coming up
https://www.youtube.com/watch?v=O6EgpmR-21Q
Zara's new model relies heavily on technological innovation and user experience. Zara relies heavily on its headquarters in order to provide the best Customer Experience Management by having from the headquarters big data from stores and adjusting the temperature, ambience, music, etc relying on this information. Data analytics rely heavily on the target market by personalizing stores with products in order to create a personalized user experience, which leads me to my next point ZARA is using Operational Innovation to further develop a new plan to reduce environmental pollution as the textile industry is the 2nd biggest polluter to become more environmental friendly
SS RITZ CARLTON DELIVERING EXCELLENT SERVICE LECCIONES DE APRENDIZAJE DE NOTA TECNICA
https://www.ie.edu/insights/articles/zara-technology-and-user-experience-as-drivers-of-business/
ZARA excels in customer service all of the line managers and employees in the store order new products based on what they think the customers in that specific location are interested in buying and ordering using a fixed time period inventory model .
In our "Innovation in a Digital World" class with Prof. Ricardo Perez we discussed how Zara has revolutionized their IT department, with new PDA (Personal Digital Assistant) and point of sales to increase the communication between stores and production facilities, thus creating fashion lines that are fully in line with clients perception of values and preferences. The Zara at the calle Serrano will differ hugely in terms of style thus creating a mass customization process in the sense that every store is redirected to its target market preference with its foundation in IT as Operational Innovation.
Have you ever seen the last 2 floors in Zara at Calle Serrano that no one can access..?? Small Secret.. they are using those floors as small distribution centers in order to have 60 minutes deliveries in the main European cities in order to rival this new trend started by FARFETCH, the luxury market place store.
Please scroll to Speed and Decision Making
BLUE OCEANS can be found in the same industry by reinventing the wheel. Zara is to revolutionize the whole shopping by creating a new business model with the store of the future.
https://www.standard.co.uk/fashion/news/zara-westfield-stratford-flagship-a3842476.html
