New Product Rapid Development And Supply Chain Fine And Efficient Management Model -- ZARA

In fashion enterprises, who has faster speed than competitors, who will gain a larger market and more sales; whoever has more popular styles will have more sales potential; and whoever has better inventory management will get more lucrative profits. Speed and style are the fundamental indicators to determine the competitiveness of a fashion company, and inventory level is the fundamental standard to reflect the management and management level of fashion companies. The new product development cycle of general fashion companies is 100 days - 160 days, while ZARA only takes 15 days. When competitors develop hot selling styles, ZARA takes 5 days to go out and can appear in ZARA stores. ZARA has about 10000 new products throughout the year, with an average of 200 weekly, and new products all year round. ZARA each new product will stop on average only 2 to 3 weeks after the store is sold. Over 2 to 3 weeks, if the product can not be sold, it will be transferred to another area or back to headquarters. ZARA basically has no slow-moving inventory, and the discount rate of the late season is 15% off, which is much lower than the average level of the fashion industry. ZARA has sold nearly 100 million pieces of clothing throughout the year. Some raw materials and processes are supplied by private factories. Some of them are provided by suppliers and collaborators. A total of 1200 collaborative enterprises are able to integrate and coordinate so many enterprises to support product supply and develop extreme operations synchronously and efficiently.

ZARA is ranked first in Spain and the third largest apparel retailer in the world. There is a rumor that ZARA is about to open in Tianhe City, Guangzhou before the Asian Games. The arrival of ZARA not only brings unprecedented market impact to the fashion industry of Guangzhou, but also gives Guangzhou fashion industry and other industries a rare face-to-face speed, new product development speed, fashion information assurance, and efficient collaborative management of supply chain learning and observation, which will bring invaluable help to improve the development of new products and supply chain management in Guangzhou fashion industry and other industries.

What causes ZARA to generate dizzy speed of new product development? Behind it is how to support the operation of vertigo speed, and how to co-ordinate and manage it?

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　　　　 Behind the speed is the idea, the strategy.

ZARA is not to speed up and speed, but to create a brand value pursuit for customers to buy the value of fashion fashion. It is the result of the strategy of "fast, agile, multi category, small scale and large terminal", and speed means competitiveness for the fashion industry, which means value. Without perfect values and values, strategic expansion will not be achieved.

　 Extreme speed is the result of continuous improvement of organizational structure and continuous optimization of business processes.

ZARA was originally organized by separate departments. After continuous changes and organizational transformation, buyers were responsible for the whole process of information, development, order and sales. ZARA has more than 200 professional fashion buyers trained by professional designers. The buyer has the comprehensive ability of comprehensive buyer, design, clothing market operation, information communication, purchasing channel ability, market sample and batch purchase, store operation communication, shop sales analysis ability, clothing product marketing, operation cost management and so on, and buyer has overall responsibility for ordering, direct purchase and sales volume, and forms a performance evaluation hook system. The organizational structure is mainly based on the work communication and coordination of enterprise buyers. The product development mode also changes the development mechanism between designers and buyers. In this process, the buyer plays the role of information collection and fashion factor provider, while the designer makes the modification of the style processing; the buyer sends the style information to the product development department and the Coordination Center for the record, and uses the product development results of the OEM manufacturer to carry on the batch purchase. On the other hand, there are also internal business development teams composed of designers, market experts and buyers, who work together, discuss together, make decisions together, and complete the research and development process faster from cost, market reaction and material supply. The designer first draws out the design drawings manually and fully exchanges with the team. After modification, he draws it again with CAD, and then carries out the matching of style, material and color to make production cost and sales valuation, so as to avoid the possibility of loss in the design stage. Then we will try out the small samples and display the display so that as many people can contact and pick up the defects and make the products more reasonable and perfect. The marketing expert in the business team is responsible for communicating with the chain store manager to discuss sales, orders, new styles, and finalize the final order. The final design decision includes when production and output, production planning and procurement begin to perform process management. This includes raw material procurement plan, production plan, inventory monitoring, distribution of production tasks and outsourcing, tracking changes in goods supply, and preventing overproduction. The optimization of the organization process and structure is the fundamental reason for ZARA's continuous accumulation and continuous improvement and development, which is a powerful support for its rapid and efficient operation. {page_break}

　　 Fast operation is highly supported by advanced IT technology and communication technology.

ZART invested $30 million to restructure the information system, and IT system was deployed to every store. Each store has its own order. The store manager is responsible for checking the sales of goods in the store and ordering from headquarters next week. The headquarters is sent to the factory through the Internet to produce and deliver goods at the fastest speed. The store manager himself decides what to enter. ZARA assessment of store managers is whether sales have been improved or not. If there is a backlog of goods, it is entirely up to the store manager to pay the bill himself. All sales data and product market reactions can be shared by designers, marketing personnel, buyers, buyers and store managers. The data based system enables the business operation team to design and update products more quickly according to customer needs, and form production and sales operations. Buyers and market sales information, fashion center information gathered to the headquarters information base, to provide a basis for designers to design new models. While checking the quantity of shipments, designers use new information to create new ideas, improve existing clothing styles, and then form a business cycle with production and operation teams. ZARA precise information comes from the synergy and integration of information standardization and supply chain operation. Under the information system, ZARA manages product information and inventory information effectively, controls raw material inventory effectively, and provides decision-making for product design. In addition to linking orders, sales, raw materials inventory and store inventory, the information system tracks and controls the processed products and logistics centers. The most important information is the product of management mechanism, which is responsible for the market and sales volume, and the inventory is responsible for limited management. The scientific and efficient process will make IT technology more effective.

　　 Vertical integration production management ensures efficiency optimization.

ZARA has 22 factories in Spain, about 50% of its products are completed by itself, but all sutures are completed by subcontractors. The remaining 50% were completed by 500 external collaboration partners, with about 70% of all products in Europe and others in Asia. Whether the product is outsourced is decided by the production plan and the purchasing personnel. The selection criteria are demand speed and market expert opinion, cost effectiveness, and factory capacity. If we can not get satisfactory price, effective transportation speed and quality assurance from the internal plant, the buyer can freely choose to outsource. ZARA raw material 40% comes from within the group, 50% cloth is not dyed, so that it can quickly cope with seasonal change trend. To prevent over reliance on a supplier, ZARA has a maximum supply of no more than 4% per supplier. ZARA has 260 raw material suppliers. ZARA is tailored to itself by CAD and then is sewn by a nearby subcontractor. After sewing, send it to your factory for ironing, inspection and packing, then send it to the logistics center. Vertical integration guarantees both timeliness and internal competitiveness. {page_break}

　　 Controllable standardized distribution management to ensure accurate arrival of goods.

All products are sent through the logistics center. Usually, the order will be shipped away 8 hours after receipt of the order. There is a fixed departure timetable for transport vehicles in logistics centers. European chain stores can receive goods within 24 hours, while the US in 48 hours, and Japan in 48 to 72 hours. The accuracy rate of ZARA shipment is over 99%.

ZARA extreme speed generation is not achieved by one point one main factors, but is realized by multi party support system. It has been completed after years of system running in, summarizing and perfecting transformation. Seemingly simple but surprising, as capacity is tough. The extreme speed of ZARA is a model of meticulous marketing management, and it is increasingly becoming a tough pass for rivals.

He Qibo, the leader of the company, focuses on cross border wisdom, and believes in the unity of knowing and doing, and seeks to combine marketing effectiveness with brand continuity. He has been engaged in tourism, shoes, outdoor, advertising, communications, cosmetics, wine and many other industries, and served as marketing manager, marketing director, vice president of marketing, chief adviser of mother mamacn.com and so on.