Today’s class lecture was particularly interesting to me because it referred to the unique supply chain of Zara’s. As a fan of Zara’s, I was always baffled by how quick the merchandise in the store would be changing. I would spot an item I liked during a visit to the store and the item would be gone by the time I came back a week or so later.
Generally, most apparel retailers commit to clothing designs six months in advance. Zara, on the other hand, only require several weeks to take a design from the drawing board and bring it to stores. Forecasting plays a big role in decision making for retailers. It helps retailers decide what and how much they need to carry in their stores.
I can definitely see the big advantage Zara has with their fast supply chain management. If one design is unpopular with customers, Zara is not left with a huge amount of unsold inventory and can quickly bring new designs to stores. If an unexpected trend suddenly appears, Zara can quickly incorporate the trend into their designs and get it to stores before the trend fades out. Fortunately for Zara’s, their supply chain is difficult to copy.
Polka Dots Are In? Polka Dots It is!- Seth Stevenson
