Discussion of Crocs Company Supply Chain

Subject: Company Analysis
Pages: 2
Words: 594
Reading time:
2 min
Study level: Bachelor

The supply chain and fulfillment model typically used in the shoe industry

The footwear industry has a typical pre-book supply chain system. Retail distributors placed bulk orders for inventory many months before; adjusting changes to suit demand was difficult. Pre-books happened at least four months before the company did deliveries to the retail stores. The supply system, however, had its benefits and backlashes too. Its advantages include the possibility for suppliers and distributors to do planned forecasting to predict the market demand. As a result, the retailers, distributors and suppliers all had easy work doing their respective tasks. On the other hand, the pre-booking supply chain had its demerits. For instance, it was not flexible to customer demand needs. Market needs are often unpredictable; thus, this system was ineffective. In case the demand went high, the retail stores would have to cope with shortages. On the other hand, the stores would remain with a surplus where the products would be popular and demand higher than expected.

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Crocs variation from the typical supply model

Crocs diverted from the usual footwear supply model, hence, revolutionizing the system. It was flexible, unlike the previous model, which was unresponsive to supply and demand. The Crocs company permitted the filling of new orders at any time within the season. It promptly manufactured the ordered new products and quickly shipped them to retail stores. Crocs staff attended trade shows such as pool supplies, and garden shows to market Crocs shoes to increase sales. They also attended events such as sports tournaments and concerts. The company’s distributors and representatives were in the United States of America; that saved the company many costs.

Crocs company diversified its products in terms of volume and range. It designed various footwear models of shoes, for example, Cayman, Beach, thirty-one models for children, professionals, and other unique models. Furthermore, Crocs partnered with universities such as Notre Dame and USC and the AVP volleyball team teams to manufacture backpacks, caps and custom-made shoes with their branding. The Crocs Company adopted a global approach with manufacturing plants situated strategically in places around the world. The manufacturing plants were located in Canada, Mexico, Italy, and Florida to ensure effectiveness and efficiency in market supply.

Advantages of the Crocs supply chain approach

The Crocs supply chain approach had many advantages, all that favored the company and enabled its prosperity. It fostered good relations with its retail service providers globally since it was flexible and favored small and large retailers alike. Its response to the market demand was also prompt, making Crocs favorable among its clients. Generally, the approach increased Crocs’ market demand, therefore, increasing its profits. As a result, Crocs’ supply chain approach gave it sustainability.

Crocs supply chain model in comparison with other shoe manufacturers

The Crocs supply chain makes sense to other footwear dealers too. Other manufacturers find the model effective and worth emulating for it saves financial costs. For instance, having an in-house warehouse and manufacturing services is inexpensive. The choice not to contract manufacturers or warehouse services, achieved by placing them within company administration and premises, saved on company expenditure. It is also lucrative since it enhanced the company’s explosive growth. For instance, revenue comparison for Crocs between 2003 and 2006 revealed that company returns had grown from 1.2 million to 355 million US Dollars, with its net income recorded as 64 million US Dollars, which is nearly twenty percent of company revenue. Ideally, other shoe manufacturers would adopt the Crocs supply chain model based on its numerous benefits, which have also made the company successful.