DesignProductionDistribution
Customer Store Mgr DesignerBuyerSupplier Store WomenMenKids CONSTANT XCHANGE OF INFO 3 independent Bu- implications?
Design/ Production etc StoreCustomer 5 fingers on customer & 5 fingers on suppliers
Close communic- ation loop Stick to a rhythm Leverage Your Assets
Approach/ payoff Philosophy You need to have 5 fingers touching the factory & 5 touching customer Capability Zara can design, produce, deliver in 15 days flat. Payoff Collects 85% of full price vs 65% competition 2001
Simpler products outsourced (sweaters) Complex Products in- house (Women’s suits)
Inventory down Profits up Revenues up Payoffs