Allows the pos system to integrate with the rest of

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allows the POS system to integrate with the rest of the systems in the supply chain and improve the flow of information in the supply chain. Technology advances at such a rapid pace that Zara’s POS may become outdated in the near future and lack support from vendors. The rise of big data, having a newer POS system may allow Zara to perform additional analytic functions which can help it to improve responsiveness to demand. yes 5.2. Adaptability and Agility: Opening a DC in Asia Zara should take advantage of the booming e-commerce industry by introducing online platforms in the Southeast Asian countries like Indonesia, Singapore, Malaysia, Thailand, and the Philippines. Despite Zara’s notable brand presence in the Asian market, with about 128 stores, there is still a lack of online platforms in Asia. The growth of the Southeast Asian markets is not only limited to e-commerce, but it can also be observed in traditional shop sales (refer to section 4.2.). Hence, there is a large overall market potential. In order to serve the growing demand of the Southeast Asian market, we recommend Zara to build a new major distribution center in this region which partly serves to replace the current DCs in Spain. With the largest number of stores of 46 and the largest population size, Indonesia is the key Southeast Asian market. With cheap labour and land, as well as its central location, Indonesia is the optimal spot for a DC. This DC would help Zara and its supply chain to adapt to the growing overall market illustrated in the previous paragraph. Even though building a new DC and integrating it into the supply chain requires a very large investment, we believe that the advantages of an additional DC outside 16
Spain will outweigh the cost, due to the huge potential of the Southeast Asian market. Very good and fully a gree . However, as this is a rather obvious problem, we need to fully understand why this was not done in the first place. Additionally, the advantages are not limited to meeting the potential demand. The introduction of a new DC will increase the efficiency of the supply chain network. Products produced and sold in Asia and the Pacific region do not have to be shipped back and forth to Spain anymore which cuts transportation costs and lead time. Shorter routes also allows Zara to test and implement alternative energy sources into their transportation network. This will help Zara in overcoming the transportation challenges, which are mainly caused by the future shortage of fossil fuels (refer to section 4.1.). On top of that, having an additional distribution center in Asia helps to improve the agility of Zara’s supply chain. This reduces the overall lead time mainly in the Asian market, which increases responsiveness to demand changes due changes fashion trends for instance. Should the introduction of a distribution center in Asia be successful, it could serve as a model for future expansion in other regions of the world such as the Americas. Yes. Again, why didn’t they do this for the big market in North America in the first place. Kind of silly to ship from Asia to Europe, then to North America.

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