Conclusion

ZARA is a great example of a company that successfully utilizes a lean system in their operations. Their just-in-time production method allows them to brand themselves as "fast fashion" and minimize waste by producing only what is needed, when it is needed. This allows the company to quickly update their stores with the latest trends, without taking on extensive inventory holding costs. After researching the company further however, we realized that ZARA could strengthen their operations by improving their distribution methods. By localizing their manufacturing to the foreign markets in which they distribute their products, ZARA could cut down on transportation costs, delays on shipments, and improve their ability to stay up to date with the latest fashion trends further solidifying their "fast fashion" positioning.