Zara is now one of the world’s hottest fashion chains. The secret to its success is that Zara stands out in supply chain management. In fact, Zara succeeds by first breaking and then rewriting industry rules.
Industry rule number one: Avoid stock-outs (缺货). From Zara’s point of view, stock-outs are a good thing, since occasional shortages contribute to a shopper’s urge to “buy now”. At Zara, items sell out fast, with new products arriving at stores twice a week. By giving just a short window of opportunity to purchase a limited quantity of products, Zara’s customers are motivated to visit the stores more frequently.
Rule number two: Outsource (外包) for cheaper production. In contrast to traditional outsourcing production, Zara has developed a super-responsive supply chain by concentrating more than half of its production in Spain (the birthplace) and its nearby countries. This means it can design, produce, and deliver a new item of clothing to its stores in a quarter of the normal time. Also, outsourcing may not necessarily be “low cost”. Errors in trend prediction can easily lead to unsold inventory (库存), forcing their retail stores to offer bigger discounts (打折). Zara’s ability to design and make new clothes quickly means shorter lead times and an ever-changing inventory. So it sells more at full price.
Rule number three: Go for efficiency through mass production. By producing products in large quantities, as is the industry norm, companies can benefit from it. Zara, however, intentionally deals in small numbers. Because of the greater flexibility and speed this approach affords, Zara does not worry about missing the boat when it comes to trends. When new trends emerge, Zara can react quickly. Also, it runs its supply chain with a fast but predictable rhythm: Every store places orders on Tuesday/Wednesdy and Friday/Saturday. Both store staff and regular customers know exactly when shipments will arrive.
Certainly, Zara has no shortage of competitors. But few have successfully copied its fast fashion and flexible business model yet.
12. Why do customers visit Zara stores more frequently?
A.Because of its regular huge discounts. |
B.Because of its wide variety of clothing. |
C.Because of the high quality of its products. |
D.Because of limited availability of its items. |
13. How has Zara developed a super-responsive supply chain?
A.By predicting future fashion trends accurately. |
B.By designing and making new clothes quickly. |
C.By making most of goods in or near its headquarters. |
D.By having factories in different countries around the world. |
14. Which can best explain the underlined phrase?
A.Being too late for delivery. |
B.Working on a tight schedule. |
C.Failing to take advantage of a chance. |
D.Producing products in large quantities. |
15. What’s the text mainly about?
A.Ups and downs of Zara. |
B.Secrets to Zara’s success. |
C.Rules of the fashion industry. |
D.Competition in the fashion industry. |