MGCR 331 Chapter Notes - Chapter 3: Inditex, Inventory Optimization, Contract Manufacturer
17 Apr 2017
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Information systems chapter 3: zara fast fashion from savvy systems. Zara is part of the multibrand empire of inditex corporation. Inditex is highly vertically integrated, keeping huge swaths of its production process in-house. One of the fastest global expansions the fashion world has ever seen, opening one store per day and entering new markets worldwide. When sales went down, he started chasing the youth market by filling his stores with miniskirts, low-rise jeans, and purple leather pants. Leveraging cheap contract manufacturing in developing countries can keep the cost of goods low. There are downsides, to have the low-cost bid, contract firms skimp on safety, ignore environmental concerns, employ child labor, and engage in other ghastly practices. Brand damaging repel new hires, turn off customers, leave current staff feeling betrayed. Even well-meaning firms can find themselves stung by corner-cutting partners that hide practices from auditors or truck products in from unmonitored off-site locations. Human dignity key platform for its philanthropic efforts.
