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    Croc's Case Study

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    Ariadna Luna
    Crocs grew rapidly from 2003 to 2006, with revenue increasing from $1.2 billion to $355 million and net income reaching $64 million. To satisfy explosive demand for its colorful shoes, Crocs had to redesign its production process. This included buying manufacturers and controlling resin production, as well as adding compounding facilities around the world and integrating warehousing into each factory. By 2007, Crocs developed a revolutionary supply chain that allowed it to flexibly move equipment between locations to meet production needs, supporting its continued success.

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    Croc's Case Study

    Uploaded by

    Ariadna Luna
    611 views5 pages
    Crocs grew rapidly from 2003 to 2006, with revenue increasing from $1.2 billion to $355 million and net income reaching $64 million. To satisfy explosive demand for its colorful shoes, Crocs had to redesign its production process. This included buying manufacturers and controlling resin production, as well as adding compounding facilities around the world and integrating warehousing into each factory. By 2007, Crocs developed a revolutionary supply chain that allowed it to flexibly move equipment between locations to meet production needs, supporting its continued success.

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    Crocs Inc., a world leader in innovative casual footwear for men, women and children..

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    Crocs grew rapidly from 2003 to 2006, with revenue increasing from $1.2 billion to $355 million and net income reaching $64 million. To satisfy explosive demand for its colorful shoes, Crocs had to redesign its production process. This included buying manufacturers and controlling resin production, as well as adding compounding facilities around the world and integrating warehousing into each factory. By 2007, Crocs developed a revolutionary supply chain that allowed it to flexibly move equipment between locations to meet production needs, supporting its continued success.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    611 views5 pages

    Croc's Case Study

    Uploaded by

    Ariadna Luna
    Crocs grew rapidly from 2003 to 2006, with revenue increasing from $1.2 billion to $355 million and net income reaching $64 million. To satisfy explosive demand for its colorful shoes, Crocs had to redesign its production process. This included buying manufacturers and controlling resin production, as well as adding compounding facilities around the world and integrating warehousing into each factory. By 2007, Crocs developed a revolutionary supply chain that allowed it to flexibly move equipment between locations to meet production needs, supporting its continued success.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 5

    Crocs: A revolutionizing an industrys supply chain model for competitive advantage

    Crocs: A revolutionizing an industrys supply chain model for competitive advantage Student
    Ariadna Luna Jimnez
    Walden University

    Crocs case study

    Crocs: A revolutionizing an industrys supply chain model for competitive advantage


    Crocs, Inc., a world leader in innovative casual footwear has grown rapidly. Standford,
    Graduate School of business (2007) From 2003 to 2006 the company had a penhomenal grown.
    Revenue in 2003 had been 1.2 billion. By 2006, it was $355 million, with a net income of $64
    million. Crocs Inc. (2015) since its inception in 2002, Crocs has sold more than 200 million pairs
    of shoes in more than 90 countries around the world. The brand celebrated reaching $1 billion in
    annual sales in 2011.
    This success was achieve after process and changes necessaries to satisfy the explosive
    demand of this funky and colorful shoes.

    Redesigning Crocs production process


    (Business Case Studies, n.d.) The production process is concerned with transforming a
    range of inputs into those outputs that are required by the market. This involves two main sets of
    resources: the transforming resources, and the transformed resources.
    According to the production process definition given, Crocs had to make changes in
    buildings, machinery, computers, and people that carry out the transforming processes
    (transforming resources) as well as the raw materials (transformed resources).
    The mention changes did not come abruptly. During the first years, the company faced
    different situations and troubles that required innovation in systems, operations, investments and
    product process.

    Crocs case study

    Once the company started global operations and sold its first shoes models, it could be
    seen that Crocs would be a total success.
    The demand exceeded the expectations and it was necessary to be well prepared. Snyder,
    Crocs CEO knew that and he instantly took advantage.
    First movements
    Adding new models was the beginning. Crocs shoes are made by molds and an injection
    system, so it was not a problem for the manufacturers. Now days these kind of changes are still
    common; fashion is always changing and Crocs is a vanguards company.
    Croslite is the precious rock of the company. Buying the manufacturer of Crocs shoes
    was the main part. Owning the resin and controlling manufacturing was the principal change
    about transformed resources.
    Global recognition: production inefficiencies
    The objective was to be worldwide company, so Crocs used large contract manufacturer
    in Asia. By that moment, business had production in Canada and Asia. In order to add capacity
    to support manufacturing, the company used large contracts in Florida, Mexico and Italy. Even if
    this changes does not apply for the word redesign, Crocs made them to improve its production
    process and fill all the demads.
    Crocs compounded the Croslite material in Italy but once the company was spread all
    around the world, it was essential to redesign and start compounding in each manufacturer
    center, (Standford, Graduate School of business, 2007) in 2006 Crocs took control of the
    compounding activity, creating a state-of-the-art compounding facilities in Canada, China and

    Crocs case study


    Mexico. To adress contract warehousing problems (their service was innefficient for Crocs), the
    company added warehousing to each factory.
    (Standford, Graduate School of business, 2007) The Crocs supply chain was able to
    support the companys explosive growth. The strategy consist in moving equipment to one
    location to another to better meet its production needs. For instance, if US demand is exceed,
    Mexicos factory will assume the production because is closer to the client.
    Dysney, the key to achieve balance
    Once the company decided it was necessary to be flexible because Disneys licenses, it
    move molds to Mexico to meet US demand while China produced for Asian costumers and for
    European costumers, Europe factories were producing. By this time, Crocs realized the
    magnitude of his demands and redesinged the production process with more and able
    infraestructure, systems and people, in order to have a quick response.

    Crocs faced the hardest changes since the beginning to 2007 when the company finally
    found the balance with such a brand of successful products. By 2007, Crocs had developed a
    supply chain that was revolutionary and wich is the key of its victory.

    Crocs case study

    References
    Business Case Studies. (n.d.). Operation theory: production process. Retrieved from Business
    Case Studies: http://businesscasestudies.co.uk/business-theory/operations/productionprocess.html#axzz3fkFm6c7R
    Crocs Inc. (2015). About us: Crocs. Retrieved from Crocs: http://company.crocs.com/
    Standford, Graduate School of business. (18 de 06 de 2007). Crocs (A): A revolutionizing an
    induestrys supply chain model for competitive advantage. Retrieved from Slideshare.net:
    http://es.slideshare.net/princesali/crocs-a-revolutionizing-an-indistrys-supply-chainmodel

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