REPORT AS PER THE

GIVEN PROJECT
BY :- PROF. CA DEV GUPTA

PRESENTED BY :- ABHIGYAN CHOWDHURY

Zara is the company which has
changed their inventory control
technique in recent days from Just In
Case(JIC) to Just In Time(JIT) for the
betterment of the company and it also
helped to improve the efficiency.
ABOUT ZARA
Zara SA, abbreviated as ZARA, is a Spanish
clothing chain headquartered in Arteixo,
Galicia. Clothing, footwear, shoes, swimwear,
makeup, and perfumes are among the
company's items, which include quick fashion.
It is the largest company in the Inditex group,
which is the largest apparel retailer on the
planet. Zara has up to 20 clothing collections a
year as of 2017.
First let's know what is
Just In Time(JIT) and
what is Just In Case(JIC).
JUST IN CASE (JIC) :- 
Only in this case (JIC) is a method of inventory in
which firms hold huge inventories. This kind of
stock control approach aims at minimising the
likelihood of a commodity being sold out. An
organisation that employs the tactic usually struggles
to forecast market demand or faces huge demand
spikes in unexpected periods. In exchange for a
decrease in the amount of sales missed due to the
out-sale product, a business implementing this policy
generates higher inventory keeping costs.
JUST IN TIME (JIT) :-

A procurement strategy is a Just-in-Time (JIT)

distribution mechanism that closely aligns
manufacturers with production plans for raw
material order. Companies use this inventory
approach to improve productivity and minimise
waste by only receiving items where they require it
to be produced, thus reducing inventory costs. This
requires manufacturers to accurately predict the
demand.
So now let's talk about how Zara
implemented the technique and how
did it help them out to process
towards betterment.
INTRODUCTION :-
Zara, a Spanish apparel distributor with nearly 1,000 outlets
in 31 countries, is taking inventory management seriously
and integrating inventory control into its overall production
and marketing approach. The corporation will take a
fashion concept and reflect it in two weeks' time in new
product selections. 15 The company recharges its stock
twice a week, well in front of the majority of the shopping
company. Zara sends out sales and consumer feedback to its
shopkeepers using manual computers and then combines
the gathered data with the design, production and delivery
functions.
 IDEALOGY BEHIND THE CHANGE :-

* The idea of inventories is one of the revolutions of market theory in the last quarter of the 20th century.
Formerly retail companies regarded book stocks as assets; they are now considered to be liabilities. Zara shows
the competitive approach taken by firms in inventory today. It once meant power and prosperity for a big store
of supply. It demonstrated that a corporation could purchase huge amounts to supply its mass manufacturing
equipment. It also offered a safeguard against price rises. When costs are low a business can defend itself when
prices increase by storing inventories.
* Huge inventories of material today mean that you cannot keep your stock count. The high inventory costs
stem from the credit required to pay for the supplies, transportation and operation. These costs can be avoided
very well. You just need better details. In certain ways, businesses, such as growth forecasts and burn rates
themselves have the knowledge. In other ways, consumers and vendors provide details.
* If the stock is a commodity, a minor investment and some experience in barcodes and scanners will provide a
current count of products on hand. Early and popular e-Business codes are bar codes.
 
 THEORY USED WHILE IMPLEMENTING :-
This theory is seen by an everyday example of contemporary office life. Office copiers often jam when
someone adds paper from a new package, particularly when a different vendor produces the new paper
—or even the same company but from a separate shipment. The papers may be of a standard size and
weight, but minor water content differences or surface qualities may remove the grip of the process of
copy feeding and lead to smeared material and time. Experienced copy centre operators therefore know
how to work paper on long jobs from the same brand and shipping.

Application of this concept means greater controls on the input of raw materials in the manufacture of
the component. As the quality of products is affected by minor content modifications, the operators and
devices have to automatically have information about certain materials. Bar codes provide a simple
means of matching production information with physical products and for this reason, certain
companies have defined bar coding.
 CONCLUSION :-

A downward pressure on the margins or superstore syndrome is one consequence of

just-in-time stocks, reduced consumer satisfaction and a reduction in products and
services to basic commodities. Supermarkets are larger dealers, operating in larger
sizes, limited ranges and bargain warehouse clubs such as Wal-Mart, the Sports
Authority and Circuit City. When people start seeing the same behaviours and
consequences on their corporate life at cheaper rates at the market level because of
superstores and their practise. Companies must always prove that they take action to
save expenses or at least add value to the balance.