SCM 300 (Test 2) CASE: Rapid Fire Fulfillment Questions and Answers | 100% Correct Answer | Grade A+

What were the key lessons Ortega took away from his early scare? Ans: To be successful, "you need to have 5 fingers touching the factory and 5 touching the customer." Translation: Control what happens to your product until the customer buys it. What are some of the things Zara can do because of the super-responsive supply chain it has built? Ans: They can ramp up or down production of specific garments quickly and conveniently because it normally operates many of its factories for only a single shift. How is Zara's supply chain different from most other supply chains in their industry? Ans: - keeps almost half of its production in-house - Far from pushing its factories to maximize output, Zara intentionally leaves extra capacity. - Rather than chase economies of scale, Zara manufactures and distributes products in small batches. - Instead of relying on outside partners, Zara manages all design, warehousing, distribution, and logistics functions itself. - Zara puts price tags on items before they're shipped, rather than at each store. - Zara tolerates, even encourages, occasional stock-outs. What are the three principles Zara lives by? Know what these principles mean and how they are carried out. Ans: -Close the communication loop -Stick to a rhythm across the entire chain -Leverage your capital assets to increase supply chain Close the communication loop Ans: goal is to close information loop between the end users and the upstream operations of design, procurement, production, and distribution as quickly and directly as possible