Having looked at Zara’s closest competitor H&M SC to determine how Zara has fared against its
competitors. Zara have a shorter lead time and is more responsive to market trends as compared to
H&M. Following that, we also looked at Zara’s updates after the case study and identify several
important updates to its SC which includes a more accurate way of managing its inventories, an
addition to its sales channel and improvements to retailers’ work process. However, it is noted that
Zara still experiences several SC challenges. These include key issues such as the limitation of its 24
companywide interconnectivity, obsolescence and restriction of the technologies currently used and
lastly, the need to maintain its leadership in the industry with online expansion.
Based on the challenges discussed above, we have came up with three different recommendations to
tackle the issues at hand. They are establishing mobile enterprise applications, upgrading of POS
terminals and further improvements on its e-commerce. However, each of these recommendations has
its benefits, disadvantages and associated risks. Zara will need to carefully evaluate these
recommendations and mitigate possible risks before implementing them.
All in all, we believe that through the implementation of more advanced technologies, whilst having
proper management of possible risks, Zara will be able to further enhance their operations and remain
as a dominant player in the fast fashion industry
Having looked at Zara’s closest competitor H&M SC to determine how Zara has fared against its
competitors. Zara have a shorter lead time and is more responsive to market trends as compared to
H&M. Following that, we also looked at Zara’s updates after the case study and identify several
important updates to its SC which includes a more accurate way of managing its inventories, an
addition to its sales channel and improvements to retailers’ work process. However, it is noted that
Zara still experiences several SC challenges. These include key issues such as the limitation of its 24
companywide interconnectivity, obsolescence and restriction of the technologies currently used and
lastly, the need to maintain its leadership in the industry with online expansion.
Based on the challenges discussed above, we have came up with three different recommendations to
tackle the issues at hand. They are establishing mobile enterprise applications, upgrading of POS
terminals and further improvements on its e-commerce. However, each of these recommendations has
its benefits, disadvantages and associated risks. Zara will need to carefully evaluate these
recommendations and mitigate possible risks before implementing them.
All in all, we believe that through the implementation of more advanced technologies, whilst having
proper management of possible risks, Zara will be able to further enhance their operations and remain
as a dominant player in the fast fashion industry
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