Question: Zara - the case continues: operations strategy: react rather than predict
What sets Zara apart from many of its competitors is what it has done with its business information and operations processes. Rather than trying to forecast demand and producing to meet that (possible) demand, it concentrates on reacting swiftly to (actual) demand. A typical clothes supplier may take three months to develop the styles for a season's range and the same again to set up the supply chain and manufacturing processes: six months pass before the garments are in the stores. Zara does this in weeks by:
· making decisions faster with better information;
· running design and production processes concurrently;
· holding stocks of fabric that can be used in several lines;
· distributing products more efficiently.
Some criticise Zara for copying designs from more prestigious brands. Customers do not seem to mind, as they buy Zara's affordable garments when they are in fashion. The company's operations strategy is clearly directed at speed - ensuring the shortest time between the design idea and the garment in the stores
Case question:
Investigate the operational strategy of another large clothing retailer such as Marks and Spencer. Can you identify any differences?