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Zara: IT for Fast Fashion - Coggle Diagram
Zara: IT for Fast Fashion
Background / Overview
Part of Inditex, a major global fashion retailer
Known for speed, vertical integration, and trend responsiveness
Minimal advertising, strong store presence
Information Technology
POS (Point-of-Sale) terminals run on MS-DOS
PDAs used for ordering and daily sales tracking
Custom in-house systems developed by small IT team
DC automation software supports logistics
Stores not networked — rely on floppy disks for updates and data transfers
Business Model
Fast response to consumer demand
Decentralized decision-making (store managers influence orders)
Vertical integration across design, production, and distribution
Frequent inventory refreshes to drive repeat customer visits
Centralized distribution in La Coruña
Operations
Ordering Process
Store managers order twice per week using PDAs
Orders transmitted to headquarters in less than 24 hours
Distribution
Central Distribution Center (DC) handles all logistics
Automated sorting and shipping systems
Design and Manufacturing
New designs created continuously based on real-time data
Small production batches to minimize excess inventory
Problems / Risks
POS system is outdated and unsupported (MS-DOS)
Hardware vendor dependency — limited future availability
No store networking, causing delays in data transmissio
Scalability issues as store network expands globally
Limited functionality — no real-time inventory visibility or inter-store transfers
Risk of system failure or security vulnerabilities
Options
Option 1: Port POS to modern operating system (Windows or Linux)
Option 2: Buy large backup stock of current terminals
Option 3: Introduce in-store networking for data sharing
Option 4: Redesign POS with added features (returns, transfers, lookups)
Option 5: Combine phased rollout with backup stock for stability
Recommended Solution
Incremental upgrade to new POS platform (pilot → phased rollout)
Maintain limited stock of old terminals as contingency
Gradually add networking and enhanced POS features
Continue leveraging internal IT for customization and control
Implementation Plan
Step 1: Develop prototype and pilot in select stores
Step 2: Evaluate stability, gather feedback, refine software
Step 3: Expand rollout regionally, train staff
Step 4: Deploy networking capabilities gradually
Step 5: Monitor performance and adjust as needed
Costs and Feasibility
~15,000 programming hours (estimated in case)
~16 hours installation time per store
License and hardware replacement costs (Exhibit 13)
Requires training but minimal operational disruption
High feasibility if phased properly
Conclusion
Modernization is necessary for long-term scalability and risk reduction
Incremental approach aligns with Zara’s culture of controlled innovation
Balances reliability, speed, and future readiness