Crocs Case
Question 1: One of Crocs core competencies is a highly responsive supply chain. How does this give Crocs the advantage over its competitors? And, describe the three phase supply chain development strategy that Crocs used to achieve their flexible supply chain.
To satisfy its mission and comply with growing consumer demands, Crocs has built a strategic business concept around maintaining flexibility to offer retailers timely fulfillment while capitalizing on the efficiencies and cost advantages. Consequently Crocs operates a distribution model which is unparalleled in the retail footwear industry. The revolutionary supply chain allowed replenishment system which strengthens its relationships with customers by allowing the company to accurately track and rapidly respond to fluctuating consumer demands while the traditional industry practice was for retailers to place bulk orders for each season 's inventory many months in advance without the ability to adjust 2 changes during the selling season.
By ensuring the speed and flexibility Crocs supply chain excellence has been the driver to the business growth and created its market added value over its competitors.
Crocs supply chain went through 3 phases to get its flexibility:
Phase 1: Taking over production
* The immediate purchase of the Canadian manufacturer in June 2oo4.
* The acquisition of the proprietary resin croslite (odor resistance and comfort).
Phase 2: Global production using contract manufacturers
* In early 2005, Crocs started production in China, using a large product manufacturer.
* It began to enter Asian & European markets in spring 2005 in order to launch worldwide.
* Snyder and his team expected the same contract manufacturing benefits in their new business (high responsiveness to consumer demands) but it wasn 't the case in the manufacturing industry, because all of manufacturers outside of Asia couldn 't work with their new flexible supply chain model. This lead them to the third
To satisfy its mission and comply with growing consumer demands, Crocs has built a strategic business concept around maintaining flexibility to offer retailers timely fulfillment while capitalizing on the efficiencies and cost advantages. Consequently Crocs operates a distribution model which is unparalleled in the retail footwear industry. The revolutionary supply chain allowed replenishment system which strengthens its relationships with customers by allowing the company to accurately track and rapidly respond to fluctuating consumer demands while the traditional industry practice was for retailers to place bulk orders for each season 's inventory many months in advance without the ability to adjust 2 changes during the selling season.
By ensuring the speed and flexibility Crocs supply chain excellence has been the driver to the business growth and created its market added value over its competitors.
Crocs supply chain went through 3 phases to get its flexibility:
Phase 1: Taking over production
* The immediate purchase of the Canadian manufacturer in June 2oo4.
* The acquisition of the proprietary resin croslite (odor resistance and comfort).
Phase 2: Global production using contract manufacturers
* In early 2005, Crocs started production in China, using a large product manufacturer.
* It began to enter Asian & European markets in spring 2005 in order to launch worldwide.
* Snyder and his team expected the same contract manufacturing benefits in their new business (high responsiveness to consumer demands) but it wasn 't the case in the manufacturing industry, because all of manufacturers outside of Asia couldn 't work with their new flexible supply chain model. This lead them to the third