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100 second reflection for week 3
Think for 100 seconds, and summarize the key things that you learned in the class week 3 – Technology in Supply Chains and Zappos case
I learned that it is important that collaboration happens between organizations and that the internet plays a big role in this. Before the internet, companies did not collaborate as much and the thought of giving up the competitive advantage on competitors was a big deal, but not with the internet everyone is better off and can have access to helpful technology.
During week 3 we learned that technology is a driving factor of Supply Chains. Technology helps better connect companies by allowing shared information easy to access. One major shift in supply chains is from being cross-functional to cross-enterprise. Companies can now integrate supply chains enterprise wide and better meet customer demands. In addition to integration, the idea of virtualization is booming due to technological advances and new opportunities.
Last week I learned that company culture can greatly influence its supply chain. Zappos is an example of a company that used its core values to innovate its supply chain. The company started with pull supply chain (drop-ship model) and eventually became push supply chain (fulfillment center) after striving for ways to better deliver goods to its customers. By focusing on customer satisfaction, Zappos developed a supply chain that continued to deliver “wow” to its customers.
From the Zappos case, I learned that a strategy can influence a supply chain. For Zappos, its strategy was to “wow” the customer with exceptional service. Zappos supply chain was tailored to this strategy by allowing it to fill customer orders quickly. An in-house supply chain can provide a competitive advantage because it is very costly to build and maintain the inventory systems and physical warehouses. Zappos custom supply chain was so effective that other shoe companies were essentially renting it through the “powered by Zappos” service.
After reading Technology in Supply Chains and Zappos case, I learned it is best to focus on what a firm has comparative advantage on to maintain or increase growth. For example, Zappos’ core competence is its outstanding customer service. Therefore, that’s how it has differentiated and should not try to introduce branded products. Introducing a Zappos branded products has high opportunity cost attached to it, employees have to shift focus from customer centric operations to manufacturing and building brand value. Also, Zappos is trusted with valuable information from vendors such as forecasts, trend analysis and other sensitive information. If Zappos were to introduce its own products, it would be a direct competitor with its vendors. Therefore, suppliers will be less willing to cooperate with Zappos which may ultimately hurt supplier/buyer relationships.
Focusing on Zappos this week again allowed for a focused look at how supply chains evolve with the business needs/changing model. Zappos was particularly interesting to discuss as they quickly realized much of their original supply chain was inhibiting their business from growing and by switching from a drop-ship model to a large-scale warehouse distributor, they were able to streamline the process of selling shoes and the process of returns. Simplifying the supply chain for Zappos was beneficial for not only Zappos, but also the consumer and shoe vendor as each process was better constructed, monitored, and efficiently utilized.
during week 3, we learn that technology can have a big impact in the supply chain. With technology the supply chain can be more efficient. using examples such as the kiva robots, which can help with inventory and decrease time it takes to retrieve items. With Zappos, their support evolve over time, from something simple to a more complex system. At first Zappos was using a drop ship model, where orders were fulfill by the shoe company instead of Zappos. Now, Zappos does all the inventory and order fulfillments themselves, and position themselves as one of the top shoe seller in the world.
I learned how Zappos commitment to excellent customer service set the foundation for their successful business model and supply chain. They focused on fast and free deliveries, year-long return policies, and a 24/7 call center that provided customers with instant feedback. This led to the evolution of a supply chain that gave Zappos full control of all inventory and their website that balanced with their core competency of excellent customer service. Zappos now has full control over their products because of their Kentucky fulfillment center and it gives them the best opportunity to satisfy their customers because of their awareness of all deliveries.
Last week I learned about how customer service effects the supply chain. Customer service seems like such a simple thing, but not all companies offer service like Zappos does. Their customer service is really the core of their business and everything, including supply chain, flows from that. Prior to last week I was wondering why it was that Zappos didn’t expand into other countries. During class we discussed expanding to different countries means that you need more warehouses. There’s also the issue of the different shipping policies in other countries. I also found the video we watched about the Kiva technology extremely interesting. It was eye opening to see how far technology has come and the possibilities are really endless.
Zappos Case was really impressive for me. To be honest, i hadn’t known abt Zappos. It is because Zappos do not want to provide their service abroad yet. But, i loved their service. When i read abt sending flowers and receiving return free for someone whose mother had passed away, i was so moved. Such service makes Zappos more special and successful. Of course their supply chain is good, but in last week, for me, Zappos’ service was amazing.
In Week 3, I learned that technology, such as the kiva robots, can have a great impact on a supply chain by increasing efficiency through reducing the time it takes to put an order together and through hiring fewer workers. Therein, cutting labor costs. I also learned about how customer service can be used as the core value of a company, such as by Zappos, to gain a competitive advantage and improve their supply chain.
I learned that a corporation must remain dynamic when integrating technology into the many functions of its supply chain in order to exceed its competitors. It may even involve an evolution of multiple supply chain models as demonstrated by Zappos, an innovator in the e-market industry. Zappos continues to leverage technology to better its customer’s experience, its overall business focus. Its model began with the drop-ship and evolved into an integrated in-house inventory model. Because of technological advancements, including Kiva robots and advanced databases, Zappos was able to evolve to operate its supply chain independently, which resulted in increased control of inventory from faster information and ultimately, happier customers.
I learned that technology is driving supply chains quickly and companies must be able to keep up with all of the changes. Technology has made it cheaper for companies to keep inventory verse paying for labor and also allows them to work nonstop. From the Zappos case I learned that companies must focus on keeping their customers happy. Zappos put customer service above all and combining that with an innovative supply chain is the reason that they have done so well.
Based on the information that I learned in the Zappos case, I learned that supply chains are the main advantage for all online retailers. Zappos is able to use their supply chain as their competitive advantage, and they use it as their way to keep their customers as happy as possible. Zappos simply put, truly cares about their customers experiences because they know its because of their customers that they as successful as they are. Zappos was able to use technology to their advantage and create their current industry leading supply chain.
The supply chains are the main advantage for all online retailers worldwide. Zappos truly cares about its customers because it credits all of its success to its customers, which is true. Zappos is able to use its supply chain to its advantage and it is used to keep their customers happy and develop and deliver its products as soon as possible.
During week 3, I learned that supply chains operate more effective and efficiently when collaboration occurs between two or more companies. Technology plays a big role in collaboration between companies, mainly through the internet. Companies, such as Zappos, have intranets where various vendors, or other companies, can access in order to collaborate more efficiently.
I learned that a company’s customer service offerings can have a huge impact on it’s supply chain. Zappos’ supply chain needs to be be able to both send out orders and receive returns in an easy and cheap manner. The evolution of their supply chain shows how overtime in order to really live up to their customer service offerings, they needed more control of their supply chain.
Through the Zappos case I learned just how important an efficient supply chain model can be for a business. With the use of technology and the relationship with its vendors, Zappos was able to use its supply chain in order to provide their customers outstanding service. It is their customer service that has become Zappos’ core competency and allowed them to differentiate themselves from competitors.