Enterprise system Assignment

Added on - 22 Nov 2020

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ENTERPRISESYSTEM
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY..................................................................................................................................11. Subject of company and problems or opportunity faced by organisation...............................12. Nature of enterprise system that is adopted by Zara and the process by which it was selectedand implemented..........................................................................................................................33. Difficulties faced by Zara in implementing system.................................................................54. Success of adoption of enterprise system and metrics used....................................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONEnterprise system (ES) are the large scale application software packages that supportentire process of system, flow of information and reporting and data analytics in complexorganisation (Enterprise System, 2018). There are many types of enterprise application likeautomated billing system, payment processing, email marketing system, customer relationshipmanagement (CRM), enterprise resource planning (ERP) and many others (Seddon, Calvert andYang, 2010). Enterprise system is very important for organisations as it help management toimprove their functions in an organisation by in integration. In this present report, the case studyof Zara of Spain is being chosen for assessment. It is the largest retail company which deals withvarious accessories but Zara is famous for its clothing brand in Spain, which was founded in1975 by Amancio Orterga and Rosalia Mera. This present report will explain the problems oropportunity that company has faced. Addition to this, problems and issues faced by organisationin adopting the system that facilitates implementation will also be included in this assignment.MAIN BODY1. Subject of company and problems or opportunity faced by organisation.Enterprise system includes (ERP) enterprise resource planning. Customer relationshipmanagement (CRM), supply chain management (SCM) and many other enterprise level systemthat are very important to all dynamic and global organisation. In order to achieve success, it isvery important to use the best enterprise system. Zara is a retail fashion industry. It is a specialindustry as compare to others. Zara also faces many difficulties when they are adopting oldmethods of system and processes. At present, it has 2200 stores. The main brand of Inditex isZara Group,which is the world largest apparel retailer. There are 2017 managers are employedin company and they are providing up to 20 clothing collection in a year. The revenue ofcompany was US$ 9 billion in 2016. Zara has contributed $8.51 billion to Inditex which putcompany ahead of H&M (Bi, Da Xu and Wang, 2014).Zara is a one of the brand that is very big retail company in Spain. It is the famouscompany in Spain dealing in clothing products and other accessories.The key owner of Zara isAmancio Ortega, Rosalia Mera in 1975.Company is giving its services since 43 years. Itsheadquarters is located in Arteixo, Spain.1
The product in which company is dealing is highly perishable products like they cannotstore there goods for long time and it is only due to current trends and fashion and it is verybiggest concern of company. In the today's era, consumerism is growing very fast as they haveso many options to select among any product which they like. It is not only enough to sell theirproducts online from e-commerce or mobile commerce. The demand of consumers changes asthey often demand apparels what they see on media. However, Zara has won the market by theirformula on which it is based on current fashion by lead time will be short, quantities is very lowand styles are more (Saraf and et.al., 2013). This formula contributes 80 percent of high sales.Still, company is facing the pressure of changing fashions, which is very big concern for Zaraand they are facing this problem due to unplanned production and selling.Addition to this, the products in which they deal is susceptible to fashion. It is very bigchallenge where the planning of company is not working. The margin of sales is meaningless ifthe products is not able to send as it is planned. Issue of seasonality is very volatile which in turncreates a ramp up inventories and then deplete them in a time sensitive manner. Seasonality isalso a very big challenge which Zara is facing like at time of winter, if warm clothes does notreach at right time at right place than it is waste and meaningless. Apart from that, at the time ofChristmas and before 2 months of Christmas, the sales of Zara increases to more than half. Thus,it is very essential that company work more on seasons. Other than that, company is facing issuesin flow of information like retailers are not getting appropriate information which in result leadsto delay in reaching of products to end users in right time.On the other hand, the shipping timing of Zara is also very high as it is not possible tomaintain the stock turnover of company. Shipping of products take large time which delayed theproducts to reach its right destination. If in the distribution of products is not proper or it takestime than it is not possible that company can develop more as it is very essential that productshould be reach on time at right destination (Dorantes and et.al., 2013). In order to achieve thebest results, it is very important for Zara to adopt new and technical system of distribution so thatshipping cost will be control to the great extent. Addition to this, Zara is also facing issues ininvesting high amount of money in development of design and company is only getting$200,000-$300,000 of retail sales which is very low figure compare to other retail industries.This is not cost efficient. This is also one of the biggest problem that company is facing. All2
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