Total Quality Management

The company practices Total Quality Management (TQM) as they place a lot of importance on customer satisfaction, continuous improvement, and employee involvement. Customer satisfaction can be measured by the psychological impressions customers receive, the products conformance to specifications, and its fitness for use. Continuous improvement can be seen throughout the company with the main improvement being the RFID system. It speeds up stocktaking by 80% and will be implemented at all of the companies under ZARA’s parent company, Inditex. Employee involvement is highly encouraged and fostered in its store locations all across the world. According to Inditex, two thirds of all management jobs in store are filled via internal promotion while growth opportunities and training programs are offered to potential employees. The company utilizes its own design, procurement, and production team that coordinate and work together in Spain. The designing team consists of 200 members that research fashion trends and begin sketching a design as soon as possible. The procurement team is in charge of forecasting how much fabric would be needed to manufacture the necessary quantity of clothes rather than how much of the finished products they need. This process helps the company reduce the amount of inventory commitment and allows them to readily use unused fabric in the next batch.