Crocs Case Study

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Recommended: Value chain and cost management

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 organization (Robbins & Coulter, 2009). In contrast, value change management focuses on both the flow of incoming materials as well as the outgoing products. In particular, it seeks “manage the sequence of activities and information along the entire value chain” (Robbins & Coulter, 2009, p. 430). In this way, it can be thought of as more customer focused as it aims to best meet the needs of its customers.

Traditional shoe manufacturers have tended to use an inflexible supply chain management model (Hoyd & Silverman, 2008). In this model, retailers submit bulk orders several months in advance of a selling season and manufacturers fill these orders exactly as submitted (Hoyd & Silverman, 2008). This process is inefficient because retailers must anticipate how many shoes they will sell before the selling season starts and are unable to modify orders according to customer needs during the season. Such a system leads to missed revenue opportunities, waste and ultimately reduced profits as retailers e...

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...es in revenue from ugly shoes. Retrieved from

http://www.businesspundit.com/how-crocs-rakes-in-revenues-with-a-single-ugly-shoe/

Plenart, G. (2011). Value change management. Encyclopedia of Business, 2nd Edition.

Retrieved from http://www.referenceforbusiness.com/management/Tr-Z/Value-Chain-Management.html

Handfield, R. (2011). What is supply chain management? Retrieved from

http://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management

Hoyt, D. & Silverman, A. (2008). Crocs: Revolutionizing an industry’s supply chain

model for competitive advantage. Stanford Graduate School of Business, GS-57.

Robbins, S.P. & Coulter, M. (2009). Management. Upper Saddle River, NJ: Pearson

Prentice Hall.

Von Briesen, J. (2009). The strategic move of Crocs, Inc. Frontier Strategy, LLC.

Retrieved from http://www.blueoceanstrategy.com/abo/Links/Crocs.pdf

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