Zara

Step 3 – Alternative Solutions:

1. Alternative no# 1: Inditex managers could install the new POS system

Pros: Installing the new Pos system would facilitate the store manager’s daily operations of recording information. Since many of them are asking for more. Moreover, with an updated Pos system they would be able to have recorded info of the inventory they have in stores.

Secondly, it’s quite evident that the operations role is very significant and a main source of incurring sales and profit. When it comes to the ordering, the speed and accuracy play a huge role. Perhaps with an updated POS system in the long run sending orders would be more efficient and satisfactory for employees.

Not to forget the importance of being updated as a whole since Zara is the only retailer still using the DOS system.

Finally in what concerns the POS terminals, by installing wireless terminals, employees wouldn’t have to copy daily sales totals from one terminal to another through floppy disks. Thus on the long run, employees would be pleased and the ordering transactions would be much simpler and even of lower costs.

Cons: In the short run, there would be some extra costs incurred on the business for wanting to install the new system. Since the there are plenty of branches all over the world that are in need of the updated system. In the Long run, the act of updating the Pos application could be a bit risky in terms of Dos Usage. For the firm could be majorly affected by porting its old Pos system.

2. Alternative no# 2: Have Inditex install a new Pos system for a short period of time and only amongst a few branches. Where for example, they would try to implement the new system and test it for a period of 6 months then compare the result with other stores.

Pros: If some Store managers in specific areas for example in Spain decided on practicing the new software, they would have the choice of either adopting it or sticking to the old system. No...