ZARA: IT for Fast Fashion Case Solution
Relevant Issue in the Case:
ZARA division is currently operating the old IT system in its day to day operations. The current IT system is operating on the DOS computerized system which is no more supported by the vendor of the system to the ZARA. Moreover, the company has no formal process of the IT budget setting and also has no Chief Information Officer personnel in the company’s management.
Secondly, the upward supply stream,which means the delivery of the raw material and goods from the suppliers to the manufacturing facility of the company, has also been affected by the obsolete IT infrastructure of the Zara Company as the old information system has failed to give the timely and relevant information to the management of the Zara Company. This obsolete IT infrastructure has failed to integrate the suppliers of the company with the inventory department of the company which would have enabled the suppliers of the company to know the needs of inventory to the company.
Moreover, the downward supply stream, which is the delivery system of the finished goods and merchandised to the retail customer and consumers of the company, also needs robust and highly effective and sophisticated information technology infrastructure within the Zara Company. This is crucial for maintaining the profitable level of sales and turnover of the company nowadays. Effective and updated IT structure of the company will help the sales department of the company to obtain the timely information of the actual demands of the customers of the company all over the world in order to manipulate the manufacturing activities accordingly......................
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