Crocs Case Study Essay

Good Essays

Crocs emerged in 2003, quickly growing in both scope and profitability as a result of its unique value chain management system. Foregoing traditional models, Crocs quickly acquired and established a world-wide network of supply, manufacturing, production, and delivery systems. This gave Crocs the ability to minimize costs, maximize efficiency, and deliver the best value to their customers. Within this customer-focused framework, Crocs created a unique global value management system, superior in execution and focus when compared with traditional supply chain systems.
Traditional Supply Chain Management
Conventional supply chain management is limited in focus. It is internally concentrated on the flow of raw materials through an …show more content…

Despite this inefficient system, Crocs was one of the first companies to successfully streamline different aspects of the manufacturing and supply chain to create a new customer-centered value chain.
The Crocs Value Chain
Crocs’ success is partially due to creating an effective value chain management system (Hoyd & Silverman, 2008). Value chain management is a dynamic process focusing on maximizing effectiveness along the entire sequence of operational activities (Handfield, 2011). In accomplishing this, Crocs refined its production, manufacturing, and delivery systems in many ways. Specifically, Crocs bought their resin supplier and engaged in technologically novel processes to create proprietary croslite® resins that are inexpensive to produce, odorless, and available in a variety of colors (Business Pundit, 2008). Likewise, they acquired and created compounding facilities to reduce supply chain inefficiencies and better control manufacturing of their product. Finally, Crocs improved their inventory processes by adding warehouse operations to each factory (Hoyd & Silverman, 2008).
Crocs’ value chain management system allowed it tremendous advantage in meeting customer needs (Business Pundit, 2008). By controlling all aspects along the value chain, Crocs could quickly adjust to customer demand, building additional shoes and fulfilling extra orders within a single selling season (von Briesen, 2009). This allowed retailers to order smaller

Get Access