Transcript Crocs - WordPress.com

J.Y Consulting Group
Juyoung Lee
Dahee Kim
Ki Hyun Kwon
Joonyoung Lee
 Foundation of Crocs (2003)
 Encountering Snyder
• Snyder’s “Think Big”
• Snyder’s “Growing Big”
 Phenomenal Growth
 Keys to Success
• Material
• Meet’s customer demand
Crocs
Supply Chain
Problem
Solution
 Producing Crocs
• Compounding
• Molding
• Assembling
• Boxing
 Product Strength
• Unique shoes
• Flexible Supply Chain
 Product Weakness
• Too Flexible Supply Chain
• Too good product
Crocs
Supply Chain
Problem
Solution
 Revolutionizing Footwear industry
 Focus on customer needs
 Responsive model
Crocs Receives Pre-Book Order from Retailers
Observe the Customer Demand
Retailers can Order more
Crocs Quickly produce more products and ship them
Crocs
Supply Chain
Problem
Solution
 Growth and Global Production
 New Products and more complicated Supply Chain
Crocs
Supply Chain
Problem
Solution
Saturated market in US
Economic recession
Decreased use of Denver operation
Aim to shorten lead time
Excess capacity of a million pairs
High price for high profit margin
Low inventory turn over ratio
Too fast expansion by consolidation
Lost competitive advantage
Owned manufacturing instead of
contract manufacturing
Lost cost advantage
Crocs
Supply Chain
Problem
Solution
Too AGILE and VERTICAL
Be more LEAN and HORIZONTAL
 Using Denver or other infrequently used operation
as 3PL to other companies
 Implementing a 3PL system for non critical items
such as coloring or warehousing
Crocs
Supply Chain
Problem
Solution
 More Suggestions
“Crocs is a well-known brand of a single-line product”
 Being more innovative in models and style
 Focusing on marketing to change the image of the company
“You can’t save your way out of recession”
 Cutting price
 Cross-training
 Work hour flexibility
Crocs
Supply Chain
Problem
Solution
 Introduction
 Supply chain
 Problems
 Solution
Thank you