The Production Department at Privalia

  • Reference: P-1131-E

  • Year: 2014

  • Number of pages: 16

  • Geographic Setting: España

  • Publication Date: Oct 24, 2014

  • Fecha de edición: Apr 27, 2017

  • Source: IESE (España)

  • Type of Document: Case

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Description

Privalia is, in 2014, a leading online fashion retail company in Spain, Italy, Brazil and Mexico. Its business model is based on organizing very short sales campaigns, of less than a week, in which surplus stock from very well-known brands is cleared at substantial discounts. The case describes the process of preparing campaigns and the problems of complexity and slowness that they cause, mainly linked to a lack of information and difficulty in planning. The company must decide how to improve productivity and speed to remain competitive in an environment where the type of work can be very varied, the content can be considered artistic (photography) and the information comes from external suppliers.

Learning Objective

This case fits perfectly in a class on operations with a focus on process improvement. The material allows for discussion of the description of the process stages (work content, resources and time) and for the conducting of a capacity analysis (resource balancing). It also addresses planning problems and how to get the brands that supply Privalia to collaborate in improving the processes.

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Keywords

Liquidation of surplus stock Online distribution Process time reduction Production processes Standardization process