Crocs initially had difficult negotiations with suppliers, due to the unproven d

Question

Crocs initially had difficult negotiations with suppliers, due to the unproven demand for its product. However, as the company demonstrated strong growth, Crocs became a sought-after customer. Crocs? experience with contract manufacturers, as described in the case, is also an important issue. The company found that Chinese contract manufacturers were very willing to take risks, invest in production capacity, and deliver according to rapidly changing demand. This was not found elsewhere, where contract manufacturers were very risk-adverse. Choose another company from your readings or research that uses the more common practice of adopting only one supply chain approach, and contrast that company's approach to the approached described in the Crocs case study.

Explanation / Answer

Crocs’ operations growth had been made possible by introducing a vastly flexible Supply chain which facilitated the organization:

To create additional products to achieve new orders swiftly during the main selling period
Letting it to respond to unpredictably high demand &
increasing the capability to satisfy the needs of the retailers
The stocks were moved to stores & Croc’s workers worked closely with the stores, i.e. the market, and the demand started driving the supply chain more effectively. In order to go deep into this demand driven supply chain Crocs also went to a wide range of events like concerts, fiestas, carnivals, athletic tournaments etc., to chat with customers about the shoes, and get their feedback. For global reach it built relationship with third-party distributors & developed a supply chain that provided a competitive advantage. In short Crocs looked at the supply chain from a much altered perspective than traditional shoe competitors.

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