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Unit 1 Assignment 1- Zara Rapid Fire Fulfillment

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In the environment that we live in today, we have transitioned to instant gratification consumers. Long gone are the days where you had to get in the car to shop in store; most people do it from the comfort of their couch. With the increased shopping presence, retailers are under extreme pressure to deliver to the demands of their customers. Zara, an international apparel retailer, based out of Spain, has figured out a way to give their customers the ultimate advantage over competitors by a process called Rapid-Fire Fulfillment. Implementing this process has not only reduced their design to sales cycle in weeks compared to months from their competitors, but “Zara’s sales and net income have continued to grow at an annual rate of over 20%” (Ferdows, Lewis & Machuca, 2004). Why is Rapid-Fire Fulfillment Successful for Zara? Zara has a rather untraditional way of processing their products. In Rapid-Fire Fulfillment, Zara can have strict controls over who handles their Supply Chain needs. Zara is one of the few retailers who are in charge of designing, manufacturing, and distributing their products. With this control, they are able to set a quick pace for the duration of the supply chain process. “At Zara, rapid timing and synchronicity are paramount” (Ferdows, Lewis & Machuca, 2004). Zara’s factories use advanced just-in-time systems that all them to customize their in-house processes and take advantage of innovations quickly. One processed used called postponement, which gives them the opportunity to purchase 50% of more of their fabrics without color so they can accommodate to color changes during the sales season. In essence, a fast and precise process, tight communication techniques, and world-class technology systems give Zara the opportunity to keep up with their demands of their customers, along with being able to give them more items to look

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