LAHORE SCHOOL OF ECONOMICS

MBA II
STRATEGIC SUPPLY CHAIN MANAGEMENT
ASSIGNMENT NO: 1
ASSIGNMENT QUESTION: What was the
Supply Cha! St"ate#y that C"$%s &$ll$we'(
)lease e*pla! us!# +Tests $& a #$$'
Supply Cha! St"ate#y,(
NAME: SAMARA AF-AL
.ATE: 1/
TH
MA0 121/
SUBMITTE. TO: MS3 MAH4ESH MAHMU.
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 industrys supply chain model for
competitive advantage.
Crocs supply chain can be analyzed using Tests of a good supply chain strategy in the
follo!ing !ay"
Aligned with the power position" As the company demonstrated strong gro!th, Crocs used a
blend of in#sourcing and out#sourcing both on#shore and offshore. As regards to the relationship
!ith 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 !as able to negotiate very favorably contracts that did not re$uire penalties.
Tailored to the right level of complexity" Crocs looked at the supply chain from a very
different perspective than traditional shoe companies. Crocs !as accustomed to producing !hat
the customer needed, !hen it !as needed and responding rapidly to changes in demand. Crocs
took the control of the manufacturing in order to reduce supply chain interruptions. %ue to its
responsive and lean supply chain, Crocs !as able to make the products during the season and
ship them to customers $uickly.
Resilient" Crocs ensured redundancy and fle&ibility through 'n addition to creating the capability
to build additional product during the selling season the company added e&tra production
capacity in order to immediately respond to increases in demand and increasing fle&ibility in
making production decisions. 't also had redundant operations so that production could be
$uickly shifted to that location best suited to meet the demand.
Responsible" responsibility promotes social and environmental !ell#being. Crocs complied !ith
all the rules of responsibility including paying duties.
Adaptability" (ith can do culture Crocs implemented its )*+ system. The attitude at Crocs
!as not limited by conventional approaches, but rather to find !ays to do !hat it felt !as best
for the company and the customer.