LAHORE SCHOOL OF ECONOMICS

MBA II

STRATEGIC SUPPLY CHAIN MANAGEMENT

ASSIGNMENT NO: 1
ASSIGNMENT QUESTION: What was the Supply
Chain Strategy that Crocs followed? Please explain
using “Tests of a good Supply Chain Strategy”?

NAME: SAMARA AFZAL

DATE: 14TH MAY 2014
SUBMITTED TO: MS. MAHVESH MAHMUD
A: Today, supply chain has become a critical asset for any company. A supply chain strategy
involves many interlocking activities and decisions. Similarly, the case study of Crocs, reflected
upon these issues and focus upon revolutionizing an industry’s supply chain model for
competitive advantage.
Crocs supply chain can be analyzed using “Tests of a good supply chain strategy” in the
following way:
Aligned with the power position: As the company demonstrated strong growth, Crocs used a
blend of in-sourcing and out-sourcing both on-shore and offshore. As regards to the relationship
with the retailers, Crocs initially focused on small retailers, but once Crocs success had been
demonstrated, large retailers approached the company enabling it to be in a position of strength
and Crocs was able to negotiate very favorably contracts that did not require penalties.
Tailored to the right level of complexity: Crocs looked at the supply chain from a very different
perspective than traditional shoe companies. Crocs was accustomed to producing what the
customer needed, when it was needed and responding rapidly to changes in demand. Crocs took
the control of the manufacturing in order to reduce supply chain interruptions. Due to its
responsive and lean supply chain, Crocs was able to make the products during the season and
ship them to customers quickly.
Resilient: Crocs ensured redundancy and flexibility through In addition to creating the capability
to build additional product during the selling season the company added extra production
capacity in order to immediately respond to increases in demand and increasing flexibility in
making production decisions. It also had redundant operations so that production could be
quickly shifted to that location best suited to meet the demand.
Responsible: responsibility promotes social and environmental well-being. Crocs complied with
all the rules of responsibility including paying duties.
Adaptability: With “can do” culture Crocs implemented its ERP system. The attitude at Crocs
was not limited by conventional approaches, but rather to find ways to do what it felt was best
for the company and the customer.