eBAGS Case Study
Operations
Introduction
eBAGS was officially launched in 1999 with a mission “To be the world's most recommended retailer of bags and related accessories by delivering a trustworthy and innovative customer experience while being a cool place to work, and earning a superior profit” (eBAGS, 2011). Founded by John Nordmark with assistance from Peter and Elliot Cobb, Frank Steed, and Andy Youngs, this group risked all of their life savings to start a storefront online company. This online company specializes in all types of handbags. eBAGS operations consist of quality control, supply chain strategy and management, forecasting, lean thinking, batch process flow and possible introduction of a
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Once established in the market, eBAGS best choice is to use a batch or job shop process. Batch process is characterized by the production of the product in batches or lots (Schroeder, Goldstein, & Rungtusanatham, 2011, p. 63). Batch process is not specialized to make just one particular product, so it offers flexibility (Schroeder, Goldstein, & Rungtusanatham, 2011, p. 66). This is important for eBAGS as they offer a variety of different products with subtle differences for choosy customers.
Job shops make products to customer order by using a process layout (Schroeder, Goldstein, & Rungtusanatham, 2011, p.64). In the job shop process, orders are still made in batches, but they are made in smaller lots specified to customers’ requests. This process can be more costly due to lower volume and standardization. However, it is still a contender for eBAGS.
Customer Contact Matrix Analysis of eBAGS: Strengths and Weaknesses of eBAGS Processes
eBAGS customer contact matrix is a low-contact process. This is where it is possible to buffer or remove the customer from the process of production. Separating the customer from the service production system allows for great standardization of processes and therefore betters efficiency (Schroeder, Goldstein, & Rungtusanatham, 2011, p.93).
eBAGS goal is to provide the customer with availability
Real-world businesses with customers which require product flexibility, in lower volumes, have the beginnings of a job shop production process (Choudhari, Adil, & Ananthakumar, 2012). Such a beginning is further evidenced when the job force is made up of highly skilled employees that are able to help create a wide array of products (Pederson, Dresdow, & Benson, 2013). The job shop process is also very widely used because of its many advantages, and despite the scheduling challenges which it presents (Meredith & Shafer, 2013). Organizations
During the game, I realized that wide gaps in orders of every role in the supply chain such as factory, distributor and retailer create inventory management challenges. For example, distributor records 0units between week1-week 4 compared to retailer within the same period. The retailer records 3units, 5units, 2units and 2units between weeks 1- week 4. The same applies to factory with 0units from weeks 2-4. Addressing inventory management problems requires developing an average unit level to avoid disappointing customers when demand
“In an age of increasing specialization, it is rare for one person to be knowledgeable in all aspects of a complex task” (Thompson, 2015, p. 88). In this case, the first step was to understand our incoming demand. For this, I relied on information technology to generate numerous reports as well as the expertise of our sales team. It was at that point that the data was analyzed in conjunction with an inventory specialist. After we had the knowledge of what current product to inventory, we then needed to establish a set of guidelines of how to qualify products in the future. Inventory control management processes were instituted as well as a supply an auditing system. These steps included information from organizational members from our manufacturing group, planning department, and procurement department. Finally, we needed to understand and facilitate the storage and shipping of the product. We enlisted the help of our warehouse employees as well as our transportation department. This type of project included various levels of the organization and required a tremendous amount of communication. The project workload was enormous and also had a substantial financial investment associated with it. Instrumental in the project’s success was the team’s cohesion, diversity, and strategies deployed
After careful assessment of the infrastructure and inventory systems used at Riordan Manufacturing, our team has identified these systems are outdated and unable to effectively manage the day to day processing. As a global leader in the manufacturing of plastic products, the performance and reliability of the infrastructure is crucial to the continued success and growth of your company’s operations. Therefore, our solution to uplift the infrastructure and launch of the Riordan Global Operations System (R.G.O) a new platform for supporting inventory and managing customer orders . Our system will enable your employees and customers see
Found Property Women Gray should bag belonging to Patient Jennifer Robinson. Bag was given to Patient Services to be mailed to Patient’s home as per Ms. Robinson’s request.
My experience and passion to work behind the scenes of the world’s leading off-price retailer makes me a strong applicant. My work experience in the retail sector provided opportunities with assisting in receiving merchandise, inventory counts and processing products to make available on the sales floor. From this, I developed a curiosity about why and how specific products were being
Based on performance indicators for picking and order preparation, central distribution centers provide a more cost efficient option. Performance for picking and order preparation efficiency is specified by accurate, cost efficient, and timing on picking and preparing the orders. Picking and order preparation efficiency in a store is low and endures high labor costs per order (Agatz, 2009). With a higher volume demand, distribution centers provide a high picking efficiency, whereas stores provide only a low picking efficiency (Boyer & Hult, 2005).
Inventory will be very simple, but also very important for Bag N’ Go as Inventory will only need to be checked every night to ensure that the store has enough laundry pods and dryer sheets to last the next day. If there is not enough to meet the forecasted needs of the next day then the manager for that day must go to the local wholesale store to buy the bulk laundry pods and dryer sheets needed to run Bag N’ Go successfully.
First, in aspects of personal selling this cost will be deducted out of the salesperson’s salary whereas all sales personal receive the same amount of salary. Next, the order processing is role of businesses to deliver consumer products accurately when and where the consumer wants the product is beneficial to retail grocery stores, supermarkets and Foodservice wholesalers. Making deliveries order processing top priority will provide the Cooper Company the fortitude to create competitive prices as well as, make deliveries in a cost-effective manner (Sabri, E. H., Gupta, A. P., & Beitler, M. A. 2007).
Thirty-four years ago in the Hartsfield Atlanta Airport, Patricia Miller and Barbara Bradley noticed that the majority of people had the same simple and boring luggage design. These two friends saw the opportunity to pursue a new market that offers colorful and patterned baggage designs, and that is how Vera Bradley began. Vera Bradley started producing colorful and unique pattered designs for luggage, bags, sports bags and handbags; and after the success of the first product line and their economic growth, they
While mass customization is a viable option in manufacturing with digital factories and employing lean manufacturing designs, service firms have to employ a more productive environment to make mass customization profitable. Mass customization refers to using mass production technologies to quickly and cost-effectively assemble goods that are uniquely designed to fit the demands of individual customers (Daft, 2016, p. 271). The key challenge for service mass customization is to translate information about consumer preferences gained through market research into a format that can be easily used for service modularization decisions and customer-contact personnel training (Haas & Kunz, n.d., p. 603). In the service arena, mass customization becomes an ongoing configuration process with direct involvement of the customer coupled with professional advice by service personnel who understand the configuration rules and know them by heart. A clear understanding of the customer’s needs is required, as well as a requirement by service personnel to provide the customer clear and concise configuration options that strike the perfect balance between flexibility and complexity. Also, a continuous interaction between frontline contact personnel and the customer is a consequence that must be
M&L Manufacturing makes various components for printers and copiers. The company supplies these items to a major manufacturer. The company also distributes these and similar items to office supply stores and computer stores as replacement parts for printers and desktop copiers. In all, the company manufactures about 20 different items to distribute. The two markets (the major manufacturer and the replacement market) require somewhat different handling. Product for the major manufacturer can be shipped in bulk. However, the products for the retail segment must be packaged individually which requires additional handling and expense. Instead of using forecasting for production planning the operations manager decides which
Vera Bradley’s company strategy is not working very well. Their company strategy involves offering a distinctive line of colorful women’s luggage, handbags and accessories. Sales are done through department stores and over the Internet. The company’s vision and mission is not clear. The company would like to open 300 full-time retail stores and 100 factory outlet stores. The goal is to sell approximately 40% of product sold in the factory outlet stores. The total handbag and accessory market consists of the following segments:
Luxury industry has always been the core aspect of a project that usually goes beyond production of just clothes or foot-wear. Luxury bags industry has also been ventured into though with some weaknesses, opportunities, strengths and threats just like any other fashion and luxury industry on the ‘trendiness’ dimension. The business had created its reputation on definitive designs in elegant styles, since its main customers are older women who approve of quality over fashion. From when it was first found, Coach’s business strategy on product is centered towards production of timeless, classic pieces. The argument in support of this
While the customized nature of B&B’s products isn’t conducive to the type of streamlining seen in volume manufacturing applications, they can