Crocs: A revolutionizing an industrys supply chain model for competitive advantage

Crocs: A revolutionizing an industrys supply chain model for competitive advantage Student
Ariadna Luna Jimnez
Walden University

Crocs case study

Crocs: A revolutionizing an industrys supply chain model for competitive advantage

Crocs, Inc., a world leader in innovative casual footwear has grown rapidly. Standford,
Graduate School of business (2007) From 2003 to 2006 the company had a penhomenal grown.
Revenue in 2003 had been 1.2 billion. By 2006, it was $355 million, with a net income of $64
million. Crocs Inc. (2015) since its inception in 2002, Crocs has sold more than 200 million pairs
of shoes in more than 90 countries around the world. The brand celebrated reaching $1 billion in
annual sales in 2011.
This success was achieve after process and changes necessaries to satisfy the explosive
demand of this funky and colorful shoes.

Redesigning Crocs production process

(Business Case Studies, n.d.) The production process is concerned with transforming a
range of inputs into those outputs that are required by the market. This involves two main sets of
resources: the transforming resources, and the transformed resources.
According to the production process definition given, Crocs had to make changes in
buildings, machinery, computers, and people that carry out the transforming processes
(transforming resources) as well as the raw materials (transformed resources).
The mention changes did not come abruptly. During the first years, the company faced
different situations and troubles that required innovation in systems, operations, investments and
product process.

Crocs case study

Once the company started global operations and sold its first shoes models, it could be
seen that Crocs would be a total success.
The demand exceeded the expectations and it was necessary to be well prepared. Snyder,
Crocs CEO knew that and he instantly took advantage.
First movements
Adding new models was the beginning. Crocs shoes are made by molds and an injection
system, so it was not a problem for the manufacturers. Now days these kind of changes are still
common; fashion is always changing and Crocs is a vanguards company.
Croslite is the precious rock of the company. Buying the manufacturer of Crocs shoes
was the main part. Owning the resin and controlling manufacturing was the principal change
about transformed resources.
Global recognition: production inefficiencies
The objective was to be worldwide company, so Crocs used large contract manufacturer
in Asia. By that moment, business had production in Canada and Asia. In order to add capacity
to support manufacturing, the company used large contracts in Florida, Mexico and Italy. Even if
this changes does not apply for the word redesign, Crocs made them to improve its production
process and fill all the demads.
Crocs compounded the Croslite material in Italy but once the company was spread all
around the world, it was essential to redesign and start compounding in each manufacturer
center, (Standford, Graduate School of business, 2007) in 2006 Crocs took control of the
compounding activity, creating a state-of-the-art compounding facilities in Canada, China and

Crocs case study

Mexico. To adress contract warehousing problems (their service was innefficient for Crocs), the
company added warehousing to each factory.
(Standford, Graduate School of business, 2007) The Crocs supply chain was able to
support the companys explosive growth. The strategy consist in moving equipment to one
location to another to better meet its production needs. For instance, if US demand is exceed,
Mexicos factory will assume the production because is closer to the client.
Dysney, the key to achieve balance
Once the company decided it was necessary to be flexible because Disneys licenses, it
move molds to Mexico to meet US demand while China produced for Asian costumers and for
European costumers, Europe factories were producing. By this time, Crocs realized the
magnitude of his demands and redesinged the production process with more and able
infraestructure, systems and people, in order to have a quick response.

Crocs faced the hardest changes since the beginning to 2007 when the company finally
found the balance with such a brand of successful products. By 2007, Crocs had developed a
supply chain that was revolutionary and wich is the key of its victory.

Crocs case study

References
Business Case Studies. (n.d.). Operation theory: production process. Retrieved from Business
Case Studies: http://businesscasestudies.co.uk/business-theory/operations/productionprocess.html#axzz3fkFm6c7R
Crocs Inc. (2015). About us: Crocs. Retrieved from Crocs: http://company.crocs.com/
Standford, Graduate School of business. (18 de 06 de 2007). Crocs (A): A revolutionizing an
induestrys supply chain model for competitive advantage. Retrieved from Slideshare.net:
http://es.slideshare.net/princesali/crocs-a-revolutionizing-an-indistrys-supply-chainmodel