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Zara : Fast Fashion

On my holiday in the north of Spain, which happened to be pretty close to the scene of crime, I couldn’t resist reading this article about Zara. A clothing company in the fashion industry – very succesful  qua revenue and Net Income. How are they doing this – while competitors falter?

As an IT specialist and TOC practitioner, this is article – a case study actually –  was a must read. Implementing IT (ERP) systems for many, many years, convinced me that IT means  much more than just hardware and software. The real challenge of implementing IT systems is: How to make them beneficial for the company.

It’s about using technology – yes – but even more it’s about people and (business) procedures

  • using the data to learn what customers really want
  • Anticipating, reacting, rather than forecasting.
  • Thinking small, fast and short
  • accepting possibly higher costs, as opposed to large, slow and long, with – at least forecasted – lower costs.

Which results in making more profit. Because there is less inventory, less risk of betting on the wrong trend or forced sell-outs. And not to forget a much faster and adequate response to customer demand.

The Zara case-study demonstrates everything Faect believes in – IT can give you an competitive advantage.

Click here for the Zara case study.

Eric Slond is Functional consultant and co-founder of Faect BV. Our toolbox for Supply Chain challenges is the latest addition to the Faect Portfolio : Soft4Inventory.

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