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ZARA- Operations Management

1. The fashion industry is characterized by being particularly sensitive to changes in market trends. Zara’s model is successful because it answers the need of "on the spot" change of variety in its stores, according to continuous changes in trends and demands (i.e. "respond in season").
This is made possible by producing "in-house" in one central location in which all of the design and a large part of the production takes place (The production in Europe focuses on trendy items - 85% of in-house production is devoted to seasonal products of that particular season).
By not relying solely on external sourcing and remote production, Zara is able to eliminate rigid commitments to vendors and long lead times which may result from transportation of work-in-progress stock between different locations of the supply chain. Therefore, production can be completed at incredibly high speed – in as little as 10 days from the time that the decision to produce......

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Approximate Word Count: 1072
Approximate Pages: 5 (250 words per double-spaced page)

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