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SCM 300 (Test 2) Case: Rapid Fire Fulfillment well solved
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SCM 300 (Test 2) Case: Rapid Fire Fulfillment well solved
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SCM 300 (Test 2) Case: Rapid FireFulfillment
What were the key lessons Ortega took away from his early scare? - correct 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? -
correct 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? - correct 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. - correct 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.
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