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Zappos - Developing a Supply Chain to Deliver Wow

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Case Zappos

Developing a Supply Chain to Deliver WOW! Core Competencies
Zappos is a prime example of a company’s end products (the goods sold) not corresponding to their core product (the delivery service). While in theory being a retailer, Zappos sees itself as a service provider. Their core competencies lie in their customer service system (i.e. free calls), their straightforward and useful web interface, their excellent supply chain structure and the extensive return policy. In the following I would like to further explain two of them. Customer Service Zappos prioritises customer service in their business model. A lot of effort is put into finding, hiring and training the right people for their free call centres. These employees then help create an emotional impact with their customers. In order to be able to cultivate the reputation of the brand Zappos they are equipped with a great amount of freedom and a wide array of measures to help their costumers resolve problems. The revolutionary aspect of Zappos call centre? Efficiency does not matter. The focus lies on creating an extraordinary, memorable experience by engaging with people. This powerful marketing tool drives sales and makes customers return. Warehouse System When Zappos started acquiring inventory and managing their own warehouse they were faced with additional costs and challenges. They overcame these by introducing an unconventional warehouse system. A robotic system with movable shelves was put into place, which proved to be twice as efficient as static or carousel methods. There is a special aspect to the warehouse system as well: It is operated 24/7 and orders are fulfilled instantaneously. Thereby reinforcing Zappos outstanding reputation speedy delivery and product fulfilment. This way Zappos is able to frequently exceed their customers’ expectations. Corporate Culture The strong foundation...

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