involves the sale of goods to the end user. In the process of sellingretailers usually have a well-laid strategy of the manner in whichdistribution will be done, as well as the processes that will beinvolved in ensuring that the customer requiring the products beingsold is reached within time. The purpose of this report is to discussretailing in Zara.
Oneof the terms used in the article is distribution center. According tothe article, in the distribution center of Zara, products are usuallysorted into the appropriate boxes which are to be shipped to theappropriate stores (Amed & Abnett, 2015). It is after putting theproducts such as jackets on the right boxes that they are eventuallyshipped to the stores of the business for sale to customers. Anotherterm used in the article is “push” vs. “pull” supply.According to the article, the business buys in bulk, usually ahead oftime based on the low cost per garment, and ‘push’ the productsat consumers. In case the garments do not sell, then the businesspush harder through special offers, discounts and marketing (Amed &Abnett, 2015). Alternatively, since the business does not advertise,it permits its operations to be ‘pulled’ by the data that isgathered from the stores. Furthermore, RFID is another term used inthe article. The article indicates that Zara uses RFID tags, wherethey are usually re-used. In order to facilitate their reuse, theyare collected at the distribution center of the business (Amed &Abnett, 2015).
Radio-frequencyidentification (RFID) has become a common approach used bybusinesses, where they use tags to products in order to make themtraceable. Zara is indicated to use RFID tags in its operations (Amed& Abnett, 2015). The primary purpose for using the RFID tags inits operations is for it to be capable of managing its inventory.Since the RFID tags have stored information concerning a product, itwould be exceedingly easy for the business to know the movement of acertain product since it will just need to track the product usingthe stored information. Therefore, with the RFID tags, it will behard for Zara to lose its products. In the case of Wal-Mart, thecompany uses RFID technology for effective inventory management. Thebusiness originally introduced the technology to track pallets ofgoods moving along its supply chain, including transfer fromwarehouses. Burberry is another company that uses the RFIDtechnology. This company uses the technology throughout its productlines in order to assist with stock, as well as quality control.Besides, the RFID technology is utilized by the company in improvingcustomer experience in some selected stores of the business. Thetechnology allows clients to view tailored multimedia content thatare specific to various products and assortments on in-store displayscreens.
Zarahas just one distribution center, which is called the ‘Cube.’ TheCube is connected to 11 factories of the business. The factoriesreceive cut fabrics from the Cube and once they finish the products,factories pass them to the Cube from where they are shipped to thestores of the business. Thus, Zara has only one distribution center.The supply chain systems of Zara are bound to changes. The companyusually changes its designs of clothing every two weeks on averagewhile other aspects of supply chain have remained unchanged.
Inconclusion, Zara is a fashion not a technology business. Thisemanates from the products it deals with. From its supply chain, itcan be realized that almost everything leans towards fashionbusiness.
Amed,I. & Abnett, K. (2015). Inditex:Agile Fashion Force. Retrieved fromhttps://www.businessoffashion.com/articles/intelligence/inditex-agile-fashion-force
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