Wednesday, November 19, 2014

Mass Production in Retail

Zara Headquarters
By reading these articles focusing on the mass and rapid production of retail based on the needs and wants of retailers, I have learned what all goes into marketing clothes. For instance, Zara is famously known for its ability to deliver new clothes to stores quickly and in small batches. In order to achieve this, Zara controls its manufacturing more than most retailers by manufacturing most of its clothes in Spain or in countries of close proximity. Zara produces 450 million items a year for its 1,770 stores located in 86 countries. 

I also learned what the "Top 10 Supply Chain Innovations of All Time" are! These innovations are responsible for the expansive growth in the retail industry that we live in today.

  1. The Toyota Production System
  2. P&G's Continuous Replenishment
  3. The Ocean Shipping Container
  4. Economic Order Quantity (EOQ)
  5. The Ford Assembly Line
  6. The Universal Product Code
  7. The FedEx Tracking System
  8. Distribution Requirements Planning (DRP)
  9. 3M's Transportation Load Control Center
  10. Taylorism


QUESTIONS:
Though it costs more to make larger sizes, why charge more for bigger sized clothing when you lose a sale altogether, instead of losing a couple of dollars?

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