Information System of ZARA Company

1. ZARA
INFORMATION SYSTEMS
Presented By:
Palak Ahuja
Ankita Wadekar
Heet Rathod
Aditi Gosavi
Ajay Mule
Saurabh Mantri
Jhanvi Joshi
Anmol Mishra
Harmish Sampat

2. Agenda
o About ZARA
o Legacy Systems of ZARA
o Advantages of Legacy Systems
o Disadvantages of Legacy Systems
o Need for a new System
o Different Plans prepared for a new system
o Revolutionary Systems Developed

3. • Spanish clothing retail group, started in 1975
• Operations into 45 countries with 531 stores located in more
than 400 cities in Europe, America, Asia and Africa.
• Has remained focused on its core fashion philosophy that
creativity and quality design together with a rapid response to
market demands will yield profitable results
About the Company

4. LEGACY SYSTEM

5. Advantages of Centralized
Systems
• Simple Architecture
• Data Integrity
• Ease of Training
• Low Maintenance

6. Disadvantage of Centralized
Systems
• Highly Network Dependent
• Bottlenecks
• Limited Access because of single location

7. Need for a Change in
Technology
• Stagnant System
• Need for Faster Processing Systems
• Need to increase Economic Profits

8. ZARA- Goals
Develop a system the requires short lead
times
Increase the number of available styles
and/or choice
Decrease quantities produced to
decrease inventory risk
These goals helped to formulate a unique value proposition: to combine moderate
prices with the ability to offer new clothing styles faster than its competitors.

9. Strengths
1.Cost leadership strategy
2.Efficient distribution
3.Information technology
4.Fast delivery of new products ,and
trends
Weaknesses
1.Centralized distribution system
2.Doesn't spend much money on
advertising
3.Zara only has one manufacturing
and distribution centre in the world
Opportunity
1.Global market penetration
2.Online market
3.Distribution centre in us
Threats
1.Local competitors
2.Global competitors
3. Zara based in Spain and has a
huge no of stores in Europe will dent
in revenues.
SWOT
analysis

10. Key Success Factors for ZARA
Business is built on quick response
 Production responds to trends.
 Deliveries are twice weekly, unlike most of the competitors weekly schedule.
KSFs:
 Market Research
 Ready raw material base
 Multi-functional quick decision making
 Vertical integration to ensure control over supply chain, and proximity.
 Technology
 Cost Control, despite flexibility
 Technology and Infrastructure

11. SCM of ZARA

12. Information Technology @ ZARA
• DBMS
Centralized System before, now it is Distributed System
• ERP
SAP , People Soft
• RFID
Barcode detector

13. Information Technology @ZARA
• The blend of technology Strategy enabled ZARA to break all the rules in
the fashion industry
• Zara’s store managers leads the intelligence gathering efforts that
ultimately determines what ends up on each stores rack.
• ZARA uses PDA’s (personal digital assistant) to gather customer input
• PDA’s are also linked to stores POS system, showing how garments
ranked by Sales
• Zara’s Staff regularly take feedback from customers on what they would
like to see more like colour, design, etc.

15. Thank You