管理信息系统案例分析—Zara

1. To make a decision on whether or not upgrading ZARA’s POS systems, we should fully consider the merits and demerits of the plan from all aspects.

A. We agree that the company should upgrade its POS system, but it also need to consider a matter of timing. Although the present POS system running stably, efficiently, and has a low operating cost, it doesn’t keep pace with the trend from the technological perspective. Also, its function is simple and has no support from the Microsoft. What’s more, the system is facing a risk that its software will be incompatible with the new hardware. However, if ZARA upgrades the POS system, they will spend time testing and adapting the new one.

In the long term, ZARA needs to upgrade the POS terminals. At present, the company should maintain relationship with the hardware provider and prepare to adopt a new system. And remember to make a specific plan for the upgrade.

B. We think the company should build in-store networks. There are two major reasons. Firstly, to build in-store networks can save manpower resource. The modem-equipped terminal can be very useful for employees to count the stock. It is in line with the company's philosophy of “fast”and the cost leadership strategy. Secondly, when building the in-store networks, the POS terminals could accommodate even more sophisticated capabilities. Generally speaking, building in-store networks can save more money for the company, and improve its efficiency.

C. The company should give employees the ability to check inventory balances for items in their own stores. The reasons are as follows:

①Let employees to know about inventory balances can get them better involved in the company affairs;

②I t’s a good way to effectively motivate staff, increase staff motivation and improve employee performance to improve enterprise performance;

③It can guide employees’ sales strategy.

D. As far as we are concerned, we think the company should give employees the ability to look up inventory balances for items in other stores. The reasons are as follows:

①Employees and branch will have more access to participate in the operation;

②It could promote the company’s internal information exchange, and even could form an internal friendly competition;

③Employees can use regional sales data to show the local consumer’s demand and influence customers’ consumption.

2. ZARA’s business strategy is mainly differentiation integrated with cost leaderships. In terms of differentiation, ZARA’s “fast fashion” philosophy is unique, which create demands and lead the trend in the garment market. They respond very quickly to the demands of target customers and focus on young fashion. In production, they design quickly, production quickly and update quickly. They are always the fastest compared

with their competitors.

In cost leadership aspect, ZARA conducts little advertising and vertically integrated manufacturing operation and distribution system based on information system. Inside the company, their organization structure is simple and employees work with high participation, so that the whole company runs efficiently. All above allow ZARA to provide products with lower price.

3. In our opinion, ZARA realize the strategy through 5 main aspects: organization structure, corporate culture, production process, marketing mode, IT.

Organization Structure

①ZARA has a flat organization structure, which emphasizes a decentralized decision making approach;

②The design team are relatively independent;

③Store managers have more responsibilities.

Corporate Culture

ZARA has a “fast fashion” philosophy, which mainly focus on the short lead times. And the company emphasizes the ability respond very quickly to the demands of target customers. They are sensitive to new styles, so they don’t produce “classics”. Production Process

①Retailing, manufacturing and apparel industry integrated;

②Low Raw material cost;

③Using sophisticated machine to raise the utilization ratio of raw materials;

④Personalized design style.

Marketing Mode

①Paying attention on the store location;

②Never selling clothes over the Internet;

③Conducting little advertising (virtually no advertising, placing ads only twice a year to announce the opening of new stores);

④Small batch quantity production of single piece (in order to stimulate demand).

IT

At La Coruna, several information systems were used to support the operations of Zara. Applications kept track of the “theoretical inventory”. And they have some good equipments and sophisticated technologies in stores, factories and DCS, which can help Zara get more benefits and reduce inventory cost.