Crocs Case Study

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The ability to fulfill orders based off of true and current demand is the staple of the Crocs supply chain. The flexibility in the Crocs supply chain has been in the company’s ability to provide additional products within the same season of release by not requiring their customers to order one time for the season and months in advance (Marks, Holloway, Lee, Hoyt, Silverman, 2011, para. 11). However, this design is not without dependency for a demand for the product. In its current structure, this supply chain is designed for continuous periods of demand. There is a lack of a strong contingency plan for periods of lower than anticipated demand or unforeseen disturbances, such as a recession (Suresh, 2013, para. 6). In order for…show more content…
Within these locations, Crocs had extra molding equipment and moldings so design capacity could be met at a moment’s notice. Crocs used an innovative material with the croslite resin material, which made their product unique. Crocs had developed two aspects of a competitive supply chain. There was built in responsiveness given this was the basis of Crocs supply chain. Since Crocs owned many pieces of the supply chain or had their employees or equipment in their partner’s locations, Crocs established healthy relationships between their partners. Nonetheless, the Crocs supply chain did have a major flaw. In its nature, the Crocs supply chain is built to have continuous demand but is not durable enough to manage slumps in demand, leading to concerns about continuing to be profitable (Mui, 2009, para. 3). In order to become more sustainable during low demand, Crocs has four options. Crocs built a majority of their supply chain by purchasing or implanting their equipment or staff into their partner’s locations. Crocs chose to vertically integrate instead of attempting to collaborate with their partners and allowing their partners to control the major activities. Crocs can continue to vertically integrate. This can be completed by adding the sourcing of raw materials under their ownership, expanding their company owned manufacturer and distribution facilities, and

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