Essay about Starbucks 's Supply Chain Management

Essay about Starbucks 's Supply Chain Management

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Based on the information provided in the case there were a few viable options in regards to expanding the business. However, many of them were resolved within the case. Fortunately enough, there were a few ends left untied specifically related to Zappos’ supply chain. In their supply chain they dealt with many inefficiencies that go beyond their organization.
One is the number of hands the goods pass through before it gets to Zappos’ Kentucky distribution center. The shoes are made in China, shipped to shoe companies in the United States, and then reaches Zappos Kentucky distribution center. If I were to expand the business I would address the unnecessary or excess shipping that the product has to go through to get to Zappos’ distribution center. Doing so would reduce the amount of time spent on shipping the shoes to the distribution center and increase their supply chain efficiency.
Second, I would also look into reducing inefficiencies in truckloads going to the distribution center as well. This would be executed by investing in a truck fleet vertically integrating another process into Zappos’ supply chain in order to reduce inefficiencies. Zappos currently has an issue with suppliers delivering partial truckloads with frequent deliveries causing inefficiencies in distributions and creating traffic issues.
Lastly, if the organization wants to continue growing they need to expand internationally. Currently, their operations only reside in the United States. Granted, the case did mention that the company is providing their services in other places like Canada, but it is not to the same degree as done in the United States. I would take their business model and apply it to Canada, but it would have to be modified in order for it to...

... middle of paper ..., some of the producers wanted to sell their products directly to the customer. In order adapt to this distribution method Zappos needs to create a selling website and distribution network to deliver products. Compared with other companies which have large shipments to fewer destinations, this was a very difficult challenge. There was an requirement to process lots of orders for single units of the products. The supply web which relates the online and real retail store needs to work as follows: The consumer places their order from the web store to Zappos or from other sources, suppliers, mail etc. and the order gets sent to the “shipping center”. The orders are re-arranged according to brand or consumer order numbers and after that all the orders are ready for shipment. This should help Zappos maintain sales growth in this changing web to distribution environment.

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