Zara Good Response Example
It can be en that the highly responsive supply chain is fundamental in delivering distinctive value to each Of Sara’s products. Comment [SC 1]: Excellent start Sara’s supply chain relies heavily on the information exchange throughout every phases and people who involved in it. To make information transfer easy, Ezra established operational procedures which involve the use of information systems. However, there are still challenges in regards to unreliable infrastructure and ineffective communication flow that hampering the information exchange.
These challenges need to be strategically dressed as it is putting Sara’s core competency at risk. The purpose of this paper is to examine how information system can strengthen Sara’s core competency. Firstly, it will describe the core competency then examine the challenges that Ezra face in cultivating this competency. Secondly, it will discuss the role of information systems in strengthen Ezra core competency. Finally this paper will conclude by offering recommendation so that information system can be implemented to help the organization.
Comment [SC]: Excellent – you could integrate the final Para here into the earlier 2 to cut down on words. Challenges in Cultivating the Core Competency Sara’s preference for speed and responsiveness has been formulated since its inception. Ezra tries to capture rapid change of customer’s demand and fulfilling it in timely manner. The core competency that enables Ezra to do this lies in their highly responsive value chain. This value chain is built from constant learning and collaboration of different part within organization a it becomes a distinctive value (Parallax and Hammer, 1990).
Sara’s value chain is designed to close the information gap between the upstream chain and the end customers. It relies heavily on the information exchange throughout the value chain. Ezra established operational procedure which consists of three cyclical processes: ordering, fulfillment design and manufacturing. Information system is heavily used to link one activity to another. However, there are still challenges which can be categorized into two issues below: 1. Unreliable Infrastructure Sara’s unreliable infrastructure is caused by two factors.
Firstly, it relates t. The outdated DOS operating system that Ezra used in point-of-sale (POS) terminal of each store. Although the system is operable currently, DOS is r anger supported by Microsoft and there is no Comment [SC]: Good though I need a bit more justification of how it qualifies as a C – does it open up markets? Does it lead to new products? Is it hard to imitate? This is to establish HOW crucial the C is and just how much threat Ezra is under… Maintenance such as systems update or bugs prevention to keep the cyst secure.
Continue in using DOS means Ezra must solely handle unexpected threats such as viruses and putting the crucial sales data into low level of security. Moreover, the outdated SO has incompatibility problem, both in hardware and software. No written commitment from hardware vendor o POS terminal continuance has put Ezra in uncertain situation. Such dependency is threatening the flow of supply chain. Aside from hardware, software incompatibility limits Ezra to build connected network with other software to accelerate information exchange.
The second factor that contributes to unreliable infrastructure is the inaccuracy of inventory management system. Sara’s uses theoretical inventory data to perform ordering, fulfillment, design and manufacturing. False inventory data lead! Sara’s production decisions highly prone to error. It also causes bad recasting in predicting the market demand. 2. Ineffective communication flow The second challenge that needs to be addressed is the ineffective communication flow between employees in performing the operational procedure.
Sara’s has established a good strategy of decentralized organization structure which gives employee such as store managers a grid deal of decision making authority. Although this policy accelerates the process, it needs to be supported by a system that enables efficient way IR exchanging information. The current information system is not yet able to deliver this. Role Of Information Systems In performing their operational procedure, Ezra faces challenges of unreliable infrastructure and ineffective communication flow. These two challenges are crucial because it affects on how Ezra perform their core competency.
The following information systems strategy seeks to address these challenges. If we examine further, both of Sara’s challenges is caused by lack of interconnected system that able to share real-time information between eat activity throughout the value chain. According to Porter (2001), information technology has significant impact in optimizing linkage of separate yet interdependent activities within the value chain (Porter, 2001 When a company able to strategically utilize IT to enhance their value chain, this enable competitive advantage sustainability (Porter and Millard, 1985).
In addressing the issues, real-time integrated value chain system is necessary In order to do this, there are several steps that need to be done including upgrading the POS operating systems, installing the value chain management software, set up computers and wireless or in-store network in every Sara’s store. This kind of system will provide Ezra with benefits listed below: 1. Reliability confidence As the system automatically calculates inventory balance in real-time, it dismiss the error Of doing it manually.
The POS sales data will interconnect with inventory management system and display the real-time balance in computers both in stores and office in La Corona. By having Comment [SC]: Although descriptive and we already know this – you have conceptualized it and thereby adding value to ensure that Ezra understands just what is at stake – good job. Comment [SC]: Which part of the C is this the retreating? Accurate inventory data, commercials team can have better confidence in aging production estimate therefore avoid unnecessary loss of having overproduction.
