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
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
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
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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