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Question: Crocs - Developing Supply Chain Alignment, Adaptability and Agility: How has the Supply Chain model of Croc helped it to thrive in a period when others have struggled?

17 Oct 2022,11:38 PM

 

Crocs - Developing Supply Chain Alignment, Adaptability and Agility

Focus: Studying a supply chain company in a business that typically relies on ‘push’. That is a forecast driven approach that tries to ‘pre-plan’ capacity with its partners to ensure supply will be available in the future when the demand is there. The important thing to notice is how they have effectively built a very responsive TOC-based system in an industry where that is very hard to do (and never done).

Become familiar with the company - Go to the Crocs web site

Read: Crocs: Revolutionizing an Industry’s Supply Chain for Competitive Advantage – Stanford Graduate School of Business 2007 

Read and watch. Here’s how Crocs avoided some of the pain of shipping delays and factory closures :
https://www.cnbc.com/2021/10/21/heres-how-crocs-avoided-some-of-the-pain-of-supply-chain-issues.html

Read: Footwear maker Crocs plans to outrun supply chain woes; shares jump :https://www.youtube.com/watch?v=pimSxbtsOoA

Watch: Crocs Case study - Revolutionizing an Industry's Supply Chain Model | SCM | Supply chain management :
https://www.youtube.com/watch?v=pimSxbtsOoA

Key questions to consider:
•What is the story of Crocs? Where did it start? What does it make? Who does it serve?
•What has been the key enabler of company growth?
•What as the normal supply replenishment model used within the industry
•What are some of the implications for companies in that industry?
•What did Crocs do differently? What are the characteristics of Croc’s supply chain?
•How has the Supply Chain model of Croc helped it to thrive in a period when others have struggled?
Base requirements:
•1 ½ to 2 pages
•address all questions

 

Expert answer

 

Crocs' supply chain model has allowed it to become one of the most successful footwear companies in the world. The company has been able to grow at a rapid pace and reach a global audience. Crocs has also been able to keep its costs low, which has helped it to be profitable.

 

The company's supply chain is based on a few key principles:

 

1. Flexibility: Crocs' supply chain is designed to be very flexible, which allows it to quickly adapt to changes in demand. The company manufactures most of its products in-house, which helps to keep costs low.

 

2. Speed: Crocs is able to get its products to market quickly due to its flexible manufacturing process. The company's products are also available online and in stores, which helps to reach a wider audience.

 

3. Cost: Crocs' manufacturing process is designed to keep costs low. The company also sells its products at a lower price point than many of its competitors.

 

4. Quality: Crocs' products are made from high-quality materials and are built to last. The company offers a warranty on its products, which shows confidence in their durability.

 

5. Innovation: Crocs is constantly innovating its product line to meet the needs of its customers. The company has introduced new product lines, such as children's shoes and sandals, in recent years.

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