Management

Zara was the largest and well- well-nigh world-wideized of Inditexs chains. At the end of 2001, it operated 507 stores in countries nigh the world, including Spain (40% of the total number for Inditex), with 488,400 square meters of selling area (74% of the total) and employing Ä1,050 integrity million million million of the companys superior (72% of the total), of which the store network accounted for slightly 80%. During fiscal grade 2001, it had posted EBIT of € 441 million (85% of the total) on gross sales of € 2,477 million (76% of the total). spot Zaras share of the groups total sales was expected to drop by two or triad percentage points each year, it would remain to be the principal number one wood of the groups ontogenesis for some time to come, and to flirt the lead role in increasing the share of Inditexs sales accounted for by international operations. The business system that had resulted (see picture 12) was particularly distinc tive in that Zara manufactured its most fashion-sensitive products innately Zaras foundationers continuously bring in customer preferences and pratd orders with internal and international suppliers. Production took place in small batches, with steep consolidation into the manufacture of the most time-sensitive items. Both internal and external production flowed into Zaras primordial distribution center.

Products were shipped directly from the central distribution center to well-located, dinky stores twice a week, eliminating the carry for warehouses and keeping inventories low. Vertical integration helped reduce the bullwhip effectthe aim for fluctuations in final admit to get amplified as they were contagious bac! k up the summate chain. Even more importantly, Zara was fitting to originate a design and have finished goods in stores within four to five-spot weeks in the case of in all new designs, and two weeks for modifications (or restocking) of alive products. In contrast, the traditional effort model might contract cycles of up to six months for...If you wish to get a proficient essay, order it on our website: OrderEssay.net

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