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Importance of supply chain management to an organisation
Importance of supply chain management to an organisation
Importance of supply chain management to an organisation
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Zappos are in effect the “middle man” as they are the company who source mainly shoes, but also, the extension of the business including handbags, apparel, sunglasses, watches and electronics from other manufacturers. These are the goods that are supplied to the customer when they order.
The services include the likes of free shipping, the website (also digital content), the 365 day return policy, and also the fantastic customer service they carry out on a day to day basis. They have the right customer service member to help in any situation.
Zappos are of course responsible for the both parts, as they have the partnership with the other companies, and personally, as a business, I would only team with companies that have a great reputation. The quality lies with the manufacturer, Zappos, as states earlier are in effect a middle man. The delivery then lies with the postal services such as USPS, UPS, FedEx, DHL etc. It is all part of the entire process, which, from start to finish, Zappos clearly execute, and organise expertly.
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The main part of this primary process would be the shoes they sell, as this is what they are based around, and this is what has places Zappos within public view.
Support Processes: The key support processes are; the customer service/phone calls provided by the staff, as well as the “WOW” factor that Zappos base themselves on and around. The development within the company with searching for new styles etc. as well as branching out would be another support
Zappos has got a customer base of nearly twenty-four million people. In the period of January 2012, Zappos has undergone suffering due to data security breach which provided hackers private info of their customers. The securities breach shown customer names, their addresses, and phone numbers but did not provide the credit card information of customers. After Zappos got to know about the security breach, Zappos have sent bulk emails to all the customers informing them about the security breach and recommended that they change their login details on the website.
They have good practices in password management and recovery mechanisms. They have built-in redundancy in their systems. So if a network element fails their sales order systems still continue running so that the orders do not get lost.
Macy’s believes that going into this business will strengthen their associates’ selling skills, recruiting new talents, increased direct supervision, and offering higher quality products. It was such a success that Macy’s rolled out this concept to 300 other locations in fall of 2016, and planned on incorporating it to the rest of their stores by the end of 2017. In an attempt to reach out to new markets, Macy’s entered in a joint venture with a Hong Kong retailing company. Macy’s own 65%, while Fung Retailing Limited will own 35% in this online venture in China. This purpose of this venture is for Macy’s to penetrate a foreign market with the help of a host’s country company to avoid running into any problems while conducting business. It
Zamzows could pursue the idea of selling their own product in their stores and seek legal advice to understand the laws of competition. They already have the distribution organized to start marketing their own product. In order to avoid potential law suits they need to understand the laws that protect our market of sales.
The company has a very good information systems support in being able to make strategic and routine decisions. They research and look into every available option prior to committing to purchasing or contracting with the companies in making sure that they are able to make the best quality product at the lowest costs.
Like ASOS, Oxfam has four main stakeholders, the first of which would be the customers. Oxfam’s customers are interested in reliable quality within the products that are being sold in the Oxfam stores. As Oxfam is known for selling books, clothing for men and women, second hand clothing and even furniture, there is always something for everybody. In addition to this, Oxfam is always receiving donated items from the public and so there are always products available for the customers which aids with the customers interest in product availability. The customers of Oxfam have influence over how much revenue is made and therefore how much the business is able to help those in need, this influence will help to make sure that Oxfam produces a good
From the consumer side, Amazon provides services like Amazon Prime, which delivers free two-day shipping on retail purchases, on-demand video streaming and a free access to the Kindle library, everything for an annual
The fundamental business strategy of Zara is very simple which is linking customer demand to manufacturing, and liking manufacturing to distribution. Zara has been running their business in fashion industry which is susceptible to seasons and quick changing customer tastes. Zara has been approached to and considered their business as a perishable commodity business just like a fresh baked cake or bread to be consumed quickly.
The business model that sets Zara apart from other clothing retailers is how rapidly the company changes stocks and releases new product lineups. The company averages 12-16 collections annually which equates to more than one lineup a month. Due to stock being limited and the rapid production Zara brings forth, their items are viewed as exclusive promoting further business. Their customers are happy knowing that their specific article of clothing is more “rare” due to only having an average of a two-week window to purchase the clothing. The company specifically targets current trends and has them in the store within 30 days. This maintains the brand’s uniqueness and relativity in fashion.
For an example, the pizza tracker is a user friendly addition to their website that allows the customer to track the process of their order in real time. It lets you know who started your order, when it’s placed in the oven, who does quality control checks to make sure your order is correct, when it’s ready and the name of your delivery driver, if applicable. There is also a feature on the site that allows the customer to send messages of gratitude to the staff members letting them know they’re doing a great job. The personable interaction with the customer is a great way to keep customers
Shopping and shipping: Zappos tried to put effort to make shopping enjoyable. The Zappos website was known as the easy shopping center. Zappos provides direction that how customers improve features, plan inventory and adapt search results. Zappos was adopted simplicity, creativity, great service of inventory and distribution. Zappos provides
Thirdly, the company is committed to delivering superior quality of products and services. It earned a reputation of a convenient and reliable brand that offers the lowest prices, one of the fastest and lowest shipping, widest selection of goods, and many additional features with its services.
Taking into account all the above points, it’s important to have a procedure in place to deal with any complaints swiftly and pleasantly. A dedicated customer service team or representative who can remedy the situation will also help to prevent a swath of negative testimonials and will likely convince the customer to remain loyal. Let’s also not forget the impact social media has had on elevating the customer service experience. Today a disgruntled customer, or indeed a delighted customer, can share their thoughts through social media channels and create a storm of negativity, or positivity, about your company. A satisfying customer service experience will ensure its the
The business model of the company could be categorized into formal and informal. As the name implies, the formal aspect of the Zappos was concerned with all the traditional aspects just like that of other companies. The formal aspects of Zappos had included Human resources, policies, procedures, operations, measurement of performances and compensation to employees on the basis of their performances. The informal aspect of the company dealt with the behavior of employees in an organization which was highlighted by Zappos in their corporate philosophy. According to their philosophy to get happy customers it was important to have happy employees and for happy employees an inspired culture was essential.
Let’s begin with L’Oreal, for example, as the company does not sell products directly on its principle website. Though it is not a merchant website, there is brand-integrated content throughout (indicative of merchant model...