1. DesignProductionDistribution

2. Customer Store Mgr DesignerBuyerSupplier Store WomenMenKids CONSTANT XCHANGE OF INFO 3 independent Bu- implications?

3. Design/ Production etc StoreCustomer 5 fingers on customer & 5 fingers on suppliers

4. Close communic- ation loop Stick to a rhythm Leverage Your Assets

5. 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

7. Simpler products outsourced (sweaters) Complex Products in- house (Women’s suits)

8. Inventory down Profits up Revenues up Payoffs