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ZARA: IT for Fast Fashion
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ZARA: IT for Fast Fashion
Zara: IT for Fast Fashion
Executive Summary
This concise summary will introduce and also, briefly, analyze and summarize the
case at hand: Zara: IT for Fast Fashion and the issues Mr. Salgado and Mr. Sanchez are
facing alongside the rest of Zara and Inditex’s management. The problems introduced are
all major concerns that are currently affecting or risking to potentially affect the company
in the future. These include issues with the current operating system and point-of-sale
systems the company operates. They provide limited visibility throughout inventory
levels resulting in customer and employee dissatisfaction alongside inefficient time
consumption due to lengthy physical inventory counts. Additionally, these systems force
the need for PDA usages which prove to be ineffective due to their small screens, and
troubles with customer returns. Because of this, we believe the company should waive
the first two of the three alternatives which described no change in the current systems,
and a gradual change by area system, respectively, and should pursue the third provided

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alternative, which consisted of an immediate implementation of new point-of-sale
systems and operating systems companywide. We believe the benefits of customer and
employee satisfaction, improved inventory information, potential for higher profits and
overall higher levels of efficiency will far outweigh the costs and risks associated with
the implementation of these new systems.
Statement of Problems/Causes
There are a number of problems identified by Salgado (head of IT) and Sanchez
of Inditex regarding problems in their Zara line of stores. These problems have created
inefficiencies within Zara and throughout the entire Inditex organization (as Zara is a
major portion of the organization) which must be solved for the business to remain a
leader in the fashion industry. The major problems revolve around the point-of-sale
system that is currently being used by Zara around the world. These problems that will
be discussed further include: a lack of visibility throughout the system for managers,
issues with ordering and data transmission to head office, and issues regarding returns.
The first issue with the point-of-sale system is the lack of visibility throughout the
whole system. This is in part due to the limitations of the MS-DOS system they currently
use. To show how outdated the system really is, hard drive manufacturers are going to
stop supporting the XP operating system by 2012 (Brownlee, 2010). Because XP is
significantly newer then MS-DOS, it will also no longer be supported by these new hard
drives; this shows the challenges Zara will face if they are to continue their current POS
system (Brownlee). The lack of visibility results lack of inventory knowledge across
store networks, lack of stock knowledge (stock counts can only be measured by physical
counts) and also, shortages of knowledge regarding best-selling items. In turn, this lack

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10 ZARA: IT for Fast Fashion 10 ZARA: IT for Fast Fashion Zara: IT for Fast Fashion Executive Summary This concise summary will introduce and also, briefly, analyze and summarize the case at hand: Zara: IT for Fast Fashion and the issues Mr. Salgado and Mr. Sanchez are facing alongside the rest of Zara and Inditex’s management. The problems introduced are all major concerns that are currently affecting or risking to potentially affect the company in the future. These include issues with the current operating system and point-of-sale systems the company operates. They provide limited visibility throughout inventory levels resulting in customer and employee dissatisfaction alongside inefficient time consumption due to lengthy physical inventory counts. Additionally, these systems force the need for PDA usages which prove to be ineffective due to their small screens, and troubles with customer returns. Because of this, we believe the company should waive the first two of the three alternatives which described no change in the current systems, and a gradual change by area system, respectively, and should pursue the third provided alternative, which consisted of an immediate implementation of new point-of-sale systems and operating systems companywide. We believe the benefits of customer and employee satisfaction, improved inventory information, potential for higher profits and overall higher levels of efficiency will far outweigh the costs and risks associated wit ...
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