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| Communication at Zara Essay

The Zara Business Model has been cited and referenced extensively as a model for ideal operations management that integrates |er demands to manufacturing and distribution of processed products. The success of such operations greatly depends on the logistics and communication structures that are put in place by the management of the firm. This paper explores the logistics and communication structures of Zara that has made it spread its market operations from Spain to other parts of the world earning a reputation as business model that is strongly founded on an integrative approach to business operations.

The logistics and communication structures of Zara enhance efficient and effective flow of information regarding |er demands from all the branches to the distribution centers and the headquarters. The major sections of Zara stores including men, women and children garments place their demands for stock twice a week at La Coruna (Mcafee, Dessain & Sjoman, 2007). New requests of the clients are communicated very promptly to the manufacturing departments through its advanced communication technology networks and seamless communication channels. When the products demanded by the |ers have been dispatched and delivered promptly, the standardized feedback mechanisms helps the store management personnel to get the feedback from the |ers (Badia, 2009). Such advanced communication structures, enables Zara to maintain inventories of the changing market preferences and thus manufacture and supply products that are on high demand. The communication network of Zara is hybrid in nature since in involves incorporation of human intelligence and IT intelligence about the goods and services produced and distributed (Voortman, 2004).

In order to determine the future production for every individual stock-keeping unit, the commercials at La Coruna work in liaison with the product managers of each field market. Increase in demand for a particular product is responded to by the logistic department almost immediately (Torun, 2007). Such responses involve interaction between the product managers, stock-keeping units, the field distribution managers and the manufacturing sector. The same procedure is followed when supply exceeds demand but this involves effecting reduction in replenishment requests. Deliveries of the demanded stocks take at most two days. The logistics here entail contraction of a truck that supplies Western Europe stores from the two distribution centers in Spain (Mcafee et al, 2007). However, replenishment of stocks in the remote areas in northern Europe and the Middle East is done through air. The logistics basically entail contracting of airlines that connect the distribution centers in Spain.

Zara’s logistics entail heavy investment on its stores. The layout and packaging of the garments and related products in the outlet stores and the distribution centers is changed every four to five years. The window displays, sales racks and artworks are thus changed frequently after testing and piloting before this is rolled out and communicated to the other stores and distribution centers outside La Coruna (Mcafee et al, 2007; Waters, 2010). Nonetheless, each section at all the Zara stores is allowed to place their orders twice in every single week, although different sections receive shipments of the new demanded products in different days. Consequently, all the distribution centers in La Coruna are kept active throughout. However, since Women’s Department accounts for the highest level of sales, orders and new demands, the firm has very well integrated communication network between the distribution centers and the manufacturing sector (Plunkett, 2009). This ensures that the demands of this dynamic market are met promptly and effectively. This is made possible through technology-supported communication infrastructure.

In conclusion, given the integrated model of the operations of Zara and its existence in various regions and outlets, its logistics and communication structures are well advanced and coordinated. The logistics and communication network and structures enables various departments to link up with headquarters, distribution centers, manufacturing and product management department. The technology-supported communication network gives an advantage over its competitors in terms of its logistics and market domination.

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