Ebags Case Study

3666 Words Jul 2nd, 2011 15 Pages
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

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