The Spanish manufacturer Zara has a simple business model that provides a significant strategic advantage.
Their system links demand to manufacturing and manufacturing to distribution.
Customers visit up to 17 times per year to check on new items that may have arrived.
Since products are limited customers will immediately purchase products they like.
Loyal and satisfied customer base.
Zara aligns its information system strategy with its business strategy.
The POS system sends daily updates to Zara’s headquarters.
Managers report to designers what sold and what customers wanted but couldn’t find.
The information is used to determine what to keep and what to discontinue or change.
New designs can be ordered twice a week.
The entire process is automated so that new designs and products can be created quickly