ZARA - Reflection

Dear fellow C-Levels,

We have seen the consultant’s presentation last week about the current state and risk associated with our outdated operating system and infrastructure. The consultants recommended that we replace out operating system and upgrade the point of sales terminals across the network of our 550 stores. They highlighted the benefits provided by the new system to include an inventory status look up, store networking, and the possibility to explore the Internet sales channel that the new system would be able to accommodate and support.

Some of you stated that “if it isn't broke, don’t fix it!” And you appear to be correct stating that we had not had any problems with the system, that it is easy to install and navigate, and that the vendor did promise not to make any changes. Nevertheless, I do not feel, and never felt, comfortable with the idea of ‘theoretical’ inventory balances. I believe we could and should do better than that! Our company experienced extreme success over the years providing customer with trendy clothing lines. I am convinced that we can capitalize on our success further and much faster, if we provide customer with inventory information at our other stores should we not have a particular garment in the store they are visiting. The Internet also appears to be a very powerful selling channel and 

I strongly believe we should pursue the option of offering our products online. Our current system does not support that and therefore I am reaffirmed in my recommendation to upgrade not only our operating system but also our point of sale terminals. I truly believe this will mitigate the business risk that we are facing.

The consultants highlighted some hidden costs that I think we failed to explore and discuss before. I understand this decision may appear costly to you, but I think it is worth it.  We should ensure that we are implementing relevant technology just as we are fashion forward in our garment offering. Out managers will be able to process orders with ease, look up other store’s inventory and devote their time to more effectively and efficiently serve our customers. I am convinced that we will quickly capitalize on this investment (much faster than the 7 years noted by the consultants).

Without further ado, please accept my vote toward the recommendation of updating our OS and POS terminals.

Best regards,

MKO