Premium Essay

Zappos

In: Business and Management

Submitted By mitcasniv
Words 3921
Pages 16
• Drop Ship strategy (Order were delivered by the shoe maker in beginning)
• Capital Investment problem
• Inventory Issue: - Lack of Information / Integration about inventory Status
• Service level: - Priority of supplier / shoe makers to the Bulk orders but not to zappos
• Conflict with Traditional supply chain management.
• Drop and ship (Ship tracking issue) zappos not have information about the shipment dates
• Branded shoe maker reluctant
• Logistic distribution issue: - between shoe maker warehouse (operated manually, location) & Zappos & UPS
• Strategic partnership with UPS for warehousing which was unsuccessful because the number of SKU was too much. Holding Inventory was too much in number ( bar code & Handler_
• Warehouse in California & then bought another in Kentucky ( using bar code strategy )
• Software to handle the inventory
• VMI
• Risk Pooling (website catalogue ,
• Replenishment of slow moving items by making partnership with 9M


Lead-time and transportation

Drop and ship

Supply Chain Management:
Supply chain management is increasingly being recognized as the integration of key business processes across the supply chain. Supply chain management is described as a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations and at the right time, in order to minimize system wide costs while satisfying the service level requirements
The primary objective of supply chain management is to fulfill customer demands through the most efficient use of resources. These resources include distribution capacity, inventory and labor. In theory, a supply chain seeks to match demand with the supply and do so with the minimal inventory. Various aspects of optimizing the supply chain...

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