Skip Hop Company Supply Chain Management Sytem Essay

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When in 2003, two new parents searched for a diaper bag that looked great and worked well, they found nothing. So they invented something. Almost decade and hundreds of products later, Skip Hop grew into a well-recognized global brand that is known for its innovative, great design and the highest quality baby products.
Even though company has only 50 employees and is considered a small company, it profited $7 million last year alone and has more than 60 retail locations all over the globe. In order to compete in a very tough baby product business against lager companies like Fisher-Price company has to have a smoothly working supply chain. Despite the fact that Skip Hop has no
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Skip Hop Supply Chain Steps
There are three very challenging steps in Skip Hop’s supply chain: supplier selection, forecasting, and inventory management. Let’s go through them.
Supplier Selection
Supplier selection is very important process for the company that is so focused on a product quality. At this moment Skip Hop has over 15 manufacturers (suppliers) and every one of them specializes on a specific product. For example, there is a manufacturer whose specialty is a diaper bag production, and other one specializes on lunch boxes. At the beginning of the process Skip Hop representatives fly to China where they present their blueprints to several manufacturers and then based on a quoted price, product quality, payment forms, lead time reliability and capacity, company picks a best available option. Unfortunately, company does not take into account manufacturers’ credibility and financial stability. If they were, they could have avoided situation where counterfeit Skip Hop backpacks got sold on Amazon and via other Internet retailers which did a great damage to Skip Hop brand.
As company grows it is important to take into account manufacturer’s willingness to share information about their order system, cycle time, and communication capabilities. This will help company lower
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