Sourcing Journal: Your Supply Chain Isn’t as Fast as Zara’s – But it Could beJune 27, 2017
Like most retailers, NGC has spent countless hours studying Zara’s agile practices and how they drive the industry’s most successful business model. Sourcing Journal’s Caletha Crawford agrees, saying Zara “is regarded as the gold standard for reading and reacting.” The Inditex company is able to do what many retailers are not able to do – continuously monitoring sales data in real-time so that they have the right product in the right stores at the right time.
NGC’s Mark Burstein recently spoke with Crawford about how retailers need to close the gap between recognizing the need to change and actually being able to match the speed of Zara’s supply chain. “At Zara, they’re afraid to not make a quick decision…if it’s the wrong decision, they’ll recover and move on,” Burstein told Sourcing Journal.
To help other retailers and brand owners move toward the Zara model, NGC recently released the Andromeda cloud platform, which enables the Digital Supply Chain by integrating data from all corporate departments and third-party providers of goods and services into one source of information, from merchandise planning through sale to the final consumer. Andromeda supports many of the same strategies that are making Zara successful – just-in-time manufacturing, postponement, reserved capacity, direct to store shipments, and material commitments with drawdowns.
Burstein went on to explain to Sourcing Journal, “People want to react but they’re not positioned to react.” In order to do this, they need to “plan the reaction.” The Digital Supply Chain allows brand owners and retailers to plan their reactions by breaking down silos between various departments and vendors, and enabling stakeholders across the organization to “know going in how you’ll marshal your resources and supply chain partners to create alternate products, if necessary.”