Question

Making periodic deliveries of products to each zara store is an example of

Answer 1

Answer: Carry out the Plan of Planning not to Plan.

As Fashion brand Zara is very popular clothing and accessories retailer. Its success as top 50 fashion brands is attributed to its unique approach of planning to achieve its vision of innovation and quality.

For ever changing style and trend, fashion industry is unpredictable, specially for brands and fashion lines. The changing trends in short span of time can cost high for business perspective as there can be huge restocking of seasonal production, if brands fail to identify future fashion trends in advance. To combat huge loss from such over stocking of production, Zara brand have implemented operational strategy to plan less. This is the Planning to plan less".

Most of the luxury fashion brands operate their production line based on prediction of what trend will be popular in coming months. This is risky plan, since fashion industry is very unpredictable. 
Zara however devised unique plan to not plan. This way the brand does\t entirely plan the production line for next six months in advance, but only 50-60%. Rest of it, it changes according to the season. This way, Zara only have limited edition of certain designs and even less stock of those items. This way, the customer have to buy the items immediately after its launch because same item might not be there next time. This not only reduce stocking of production but also increases business as buyers constantly visit stores to but items which they know won't linger there for longer time.

Answer 2

Making periodic deliveries of products to each Zara store is an example of “carry out the Plan.”

Further Explanation:

Periodic delivery:

The periodic delivery refers to the delivery of the goods where the whole quantity is not delivered at a single time. Instead, the delivery of the goods is carried out on a periodic basis. The main reason behind the periodic delivery is to remain the least level of inventory.

Technique used by Zara:

Zara deals in the fashion industry, which is a very unpredictable market. The fashion trends can change over a week or a month. Therefore, the retailers have to keep the update of the current market trends and the upcoming market trends to produce the product for future demand. As the trends in the fashion industry change very fast, retailers try to predict future trends and fulfill their stock accordingly. However, Zara has adopted a different approach. It used the periodic delivery where it fulfills the 50-60% of the stock, and the remaining stock is fulfilled by the periodic delivery. The periodic delivery depends on the market trend at the time of delivery. The periodic delivery helps Zara to decrease the shortage risk in case of a change in trend. It is an example of “carry out the plan”.

Thus, making periodic deliveries of products to each Zara store is an example of “Carry out the Plan”.

Learn More:

1. Learn more about the markets

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2. Learn more about the supply of goods

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3. Learn more about the expenses

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Answer Details:

Grade: Middle school

Chapter: Marketing Strategies  

Subject: Business

Keywords: Making periodic, deliveries, products, each, zara, store, example, goods, quantity, fashion, industry.