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Business & Marketing
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English (U.S.)
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Topic:

Revolutionizing an Industry’s Supply Chain Model for Competitive Advantage

Essay Instructions:

Case 5: Crocs: Revolutionizing an Industry’s Supply Chain Model for Competitive Advantage

Describe the supply chain and fulfillment model typically used in the shoe industry. What are the major advantages and disadvantages of this model?

How did Crocs deviate from the model usually used in the shoe industry? What are the main advantages of the Crocs supply chain approach?

Does the Crocs supply chain model make sense for other shoe manufacturers? Why or why not?

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Revolutionizing an Industry’s Supply Chain Model for Competitive Advantage
The traditional supply chain in the footwear industry follows a pattern where the raw materials for the individual parts are collected and then forwarded to the manufacturers of the various components. Once the components have been manufactured, they are then assembled to form complete shoe packages, which are then forwarded to the logistics department. The logistics department is responsible for ensuring the product is delivered to the distribution channels, including wholesalers and retailers, as well as arranging for sustainability strategies to attain reverse logistics (Moktadir et al. 715). The traditional model has limitations given that the retailer must make advanced orders, and there is little room for readjustment and manufacturing during peak seasons (Snyder 3). The response time is also slow, typical of all traditional supply chain models. One major strength of the traditional supply chain model is the ability to build long-term relations with the key players in the supply chain (Viana and Filho 451). Nevertheless, it has significant limitations.
Crocs use a completely different supply chain model where the raw material production, compounding, assembling, and distribution are done in completely different zones. The model is based on the idea that the retailers are aware of the potential peak seasons, ...
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