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SCM 300 (Test 2) Case Rapid Fire Fulfillment Questions and Answers
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SCM 300 (Test 2) Case Rapid Fire Fulfillment Questions and Answers
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SCM 300 (Test 2) Case: Rapid FireFulfillment Questions and Answers
What were the key lessons Ortega took away from his early scare? - Answer -To be
successful, "you need to have five fingers touching the factory and five touching the
customer." Translation: Control what happens to your product until the customer buys it
What are some of the things Zara can do because of the super-responsive supply chain
it has built? - Answer -The company can design, produce, and deliver a new garment
and put it on display in its stores worldwide in a mere 15 days.
How is Zara's supply chain different from most other supply chains in their industry? -
Answer -- Zara keeps almost half of its production in-house. Does not outsource.
- Far from pushing its factories to maximize their output, the company intentionally
leaves extra capacity.
- Rather than chase economies of scale, Zara manufactures and distributes products in
small batches. - Instead of relying on outside partners, the company manages all
design, warehousing, distribution, and logistics functions itself.
- It puts price tags on items before they're shipped, rather than at each store.
What are the three principles Zara lives by? Know what these principles mean and how
they are carried out. - Answer -- close communication loop : Zara's supply chain is
organized to transfer both hard data and anecdotal information quickly and easily from
shoppers to designers and production staff. It's also set up to track materials and
products in real time every step of the way, including inventory on display in the stores.
The goal is to close the information loop between the end users and the upstream
operations of design, procurement, production, and distribution as quickly and directly
as possible.
- Stick to a rhythm across the entire chain : At Zara, rapid timing and synchronicity are
paramount. To this end, the company indulges in an approach that can best be
characterized as "penny foolish, pound wise." It spends money on anything that helps to
increase and enforce the speed and responsiveness of the chain as a whole.
- Leverage your capital assets to increase supply chain flexibility : Zara has made major
capital investments in production and distribution facilities and uses them to increase
the supply chain's responsiveness to new and fluctuating demands. It produces
complicated products in-house and outsources the simple ones.
Describe Zara's Design and Production center in La Coruna. - Answer -It consists of
three spacious halls—one for women's clothing lines, one for men's, and one for
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