Zara Case Report

Part 1: Executive Summary

The most recent concern within the Zara Corporation supply chain system is their information technology (IT) sector. It has been nine years since Microsoft last supported their DOS software for computers. Until today, all point-of-sale (POS) terminals ever used in Zara retail stores around the world still currently run on DOS. The terminals are out of date and are no longer supported in the event of any system failure. The vendor that builds the current POS terminals will continue building the computer software for Zara because they are their biggest customers. The current system is stable and simple to use, however; it is risky to become so far behind current technology. Mr. Salgado, the head of IT for Zara, is concerned that changes should be made before any major problems occur.

Mr. Salgado and the senior management need to come to an agreement regarding the issue of the out-of-date POS terminals. Upgrading the POS terminals with the newest technology will allow future growth for Zara. In the long term, Zara will be able to see a further increase in processing speed throughout their supply chain system. As Mr. Salgado, I would implement a strategy to build and install new POS terminals in order to successfully meet future fashion demand.

The new strategy will include different phases of when and where the new POS terminals will be introduced. The POS terminal will first undergo a measured test trial for error within the local area of La Coruna. This will allow the IT team more control to fix any unexpected problems of the newly developed terminals. Once the new terminals are installed, Zara Corporation should see an increase in performances and sales.

Part 2: Issue Identification

Zara is known to be a super star in designing clothing for women, men, and children around the world. Their selections of fashion are always unique and desirable by young shoppers. For Zara to be so successful, Mr. Ortega, the founder and chairman of...