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    Crocs: Revolutionizing An Industry's Supply Chain Model For Competitive Advantage

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    nehaarora909
    Crocs revolutionized the footwear industry's supply chain model for competitive advantage. They took over shoe production, used contract manufacturers for flexible global production, and eventually brought the global supply chain in-house. This highly flexible supply chain, ability to deal with explosive growth among small and large retailers, shift production to reduce duties, and unique products and supply chain planning were key to their success. In 2007, Crocs' revenues were $144.2 million with $84.2 million in gross profit and $24.9 million in net income, significantly higher than 2006 figures.

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    Crocs: Revolutionizing An Industry's Supply Chain Model For Competitive Advantage

    Uploaded by

    nehaarora909
    2K views24 pages
    Crocs revolutionized the footwear industry's supply chain model for competitive advantage. They took over shoe production, used contract manufacturers for flexible global production, and eventually brought the global supply chain in-house. This highly flexible supply chain, ability to deal with explosive growth among small and large retailers, shift production to reduce duties, and unique products and supply chain planning were key to their success. In 2007, Crocs' revenues were $144.2 million with $84.2 million in gross profit and $24.9 million in net income, significantly higher than 2006 figures.

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    CROCS

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    Crocs revolutionized the footwear industry's supply chain model for competitive advantage. They took over shoe production, used contract manufacturers for flexible global production, and eventually brought the global supply chain in-house. This highly flexible supply chain, ability to deal with explosive growth among small and large retailers, shift production to reduce duties, and unique products and supply chain planning were key to their success. In 2007, Crocs' revenues were $144.2 million with $84.2 million in gross profit and $24.9 million in net income, significantly higher than 2006 figures.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    2K views24 pages

    Crocs: Revolutionizing An Industry's Supply Chain Model For Competitive Advantage

    Uploaded by

    nehaarora909
    Crocs revolutionized the footwear industry's supply chain model for competitive advantage. They took over shoe production, used contract manufacturers for flexible global production, and eventually brought the global supply chain in-house. This highly flexible supply chain, ability to deal with explosive growth among small and large retailers, shift production to reduce duties, and unique products and supply chain planning were key to their success. In 2007, Crocs' revenues were $144.2 million with $84.2 million in gross profit and $24.9 million in net income, significantly higher than 2006 figures.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 24
    At a glance
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    Some key takeaways are that Crocs developed a highly flexible global supply chain model using contract manufacturers to rapidly respond to demand. They also brought their supply chain in-house by buying contractors and setting up new facilities. This allowed them to gain competitive advantages over traditional supply chain models.

    Crocs revolutionized the footwear industry's supply chain model by taking over production of their shoes, using contract manufacturers globally for flexible production to rapidly respond to demand, and eventually bringing their entire global supply chain in-house.

    Some of Crocs' core competencies included their knowledge of the unique Croslite resin material and their development of a highly flexible global supply chain. Key success factors were dealing with explosive growth, offering a diversity of unique products, effective supply chain planning, targeting small and large retailers, and shifting production to reduce duty payments.

    LOGO

    Crocs
    Crocs :: Revolutionizing
    Revolutionizing
    an
    an Industry’s
    Industry’s Supply
    Supply Chain
    Chain Model
    Model for
    for
    Competitive
    Competitive Advantage
    Advantage

    BY GROUP 5
    CASE STUDY INCLUDES

    1 Company Overview

    2 Traditional Supply Chain

    3 Crocs Supply Chain

    4 Core Competencies & Key


    Success Factors

    5 Crocs’ Sales Year 2007


    COMPANY
    OVERVIEW
    CROCS > OVERVIEW

    Crocs Inc. makes footwear for men,


    women, and children.
    This material creates a soft,
    lightweight, non-marking,
    slip- and odor-resistant shoe. Title

    The unique resin material, croslite.


    TRADITIONAL
    SUPPLY

    CHAIN
    Demand Flow

    Supplier
    Supplier Manufacturer
    Manufacturer Distributor
    Distributor Retailer
    Retailer

    Product Flow
    www.themegallery.com
    LOGO
    www.themegallery.com
    LOGO
    www.themegallery.com
    LOGO
    CROCS
    SUPPLY
    CHAIN
    www.themegallery.com
    LOGO
    www.themegallery.com
    LOGO
    www.themegallery.com
    LOGO
    DEVELOPING THE CROCS SUPPLY
    CHAIN

    Taking over Production Global Production Bringing the Global


    Using Contract Supply Chain In-House
    Manufacturers
     Buying the Crocs
    shoe manufacturer.  Buying the contractor
     Flexible production.
    and setting up a new
     Rapid response to
    facility.
    Demand.
    DEVELOPING THE CROCS SUPPLY
    CHAIN

    Taking over Production Global Production Bringing the Global


    Using Contract Supply Chain In-House
    Manufacturers
     Buying the Crocs
    shoe manufacturer.  Buying the contractor
     Flexible production. and setting up a new
     Rapid response to facility.
    Demand.
    DEVELOPING THE CROCS SUPPLY
    CHAIN

    Taking over Production Global Production Bringing the Global


    Using Contract Supply Chain In-House
    Manufacturers
     Buying the Crocs
    shoe manufacturer.  Buying the contractor
     Flexible production. and setting up a new
     Rapid response to facility.
    Demand.
    www.themegallery.com
    LOGO
    CORE
    COMPETENCIES
    & KEY SUCCESS
    FACTORS
    CORE COMPETENCIES

    Core
    Competencies

    Highly flexible
    Know How of
    supply chain.
    Croslite.
    KEY SUCCESS FACTORS

    Small vs. Large Dealing with


    Retailers explosive Growth

    Diversity and
    Shifting Production
    Unique products
    to reduce duty
    And Supply chain
    payments.
    Planning
    CROCS’S
    SALES
    YEAR 2007
    CROCS’ SALES YEAR 2007

    USA

    68%
    8%
    OTHER
    8%
    16%

    EUROPE
    ASIA
    REVENUES IN
    2007
    144.2
    Gross Profit
    84.2
    Net income
    after tax= 24.9

    REVENUES IN
    2006
    44.8
    Gross Profit Annual sales= 355
    23.7 Market capitalization= 2102
    Net income In 2011-12 Market capitalization of
    after tax= 6.4 Crocs, Inc. (NasdaqGS: CROX )
     $1.38B
    All figures are in million dollar.

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