Technological Factors Affecting Zara

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Category: Business and Industry

Date Submitted: 11/17/2012 08:20 AM

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Technological factors:

Technology plays an increasingly important role in the fashion retail industry. It has been an area of intense focus as a way to accomplish goals and objectives. Retail industries have benefited from the progress in technology as it brought many improvements to many areas that is important to their strategy such as, supply chain management, and inventory management. IT infrastructure enhanced the supply chain and enabled fashion garments to be shipped quickly from the distribution centers to the physical stores. Technology enabled retailers to produce more fashion styles in shorter lead times which helped them to respond quickly to changing fashion trends and consumer tastes. Moreover, industry players have the opportunity to improve margins through the use of fast wireless technology, as it speeded up the communication network and the decision making. Inditex, leaded many companies in technology, and built a business model fully integrated with latest technologies. Through technology, Indetix was able to develop an effective and flexible supply chain. Through computers, store managers collect and send vital information regarding daily sales numbers , allowing designers in headquarters in spain to approximate what type of fashions are selling well. Therefore, designers can have the information available in front of them when they decide which type of fabric, cut, and colors to use for the for the new garments or modifying the existing ones. This have reduced the time it takes the clothe from design conception to the distribution center to be finally placed in the stores within three weeks only. Moreover, IT helped the company to store product information and to manage thousands of inventory design specification. In addition, technology supported inditex strategy of geographic expansion, as it revolutionized the process of opening a store by transforming it to simply a "plug and go" system that any store manager can perform....