Have you ever wondered why all the latest trends pop up in Zara as soon as you see them in a magazine? Have you ever wondered how Zara has become so successful with little advertising? The answer is simple. Zara has mastered the supply chain. Many companies struggle in their supply chain management, but Zara has come up with an efficient solution to common supply chain challenges.
One of the biggest challenges in the supply chain is predicting consumer demand. This is no big deal for Zara, who has overcome this challenge by developing an effective IT system, which sends consumer feedback to the design team almost immediately after a product is purchased. Zara doesn’t have to predict what their customers will be wearing next week because their feedback system does the work for them.
Zara employees count inventory frequently to determine which designs are selling and which are not and conveys this information directly to the designers. Based on this feedback, designers are able to alter products during the selling season, which is almost impossible for other clothing retailers. With its growing sales, Zara has proven that knowing what your customers want is more important than any magazine advertisement.