According to Schroeder, Goldstein, & Rungusanatham (2011) “the considerations required for process selection include the volume of the product and whether the product is standardized or customized” (p. 78). Typically, “high-volume products that are standardized will be made on an assembly line, and low-volume customized products will be made using a batch or job shop process” (Schroeder et al., 2011, p. 78).
Currently, 85% of eBags product sales are manufactured and drop shipped to customers by luggage manufacturers such as Samsonite, Eastpak, and Briggs & Riley (Schroeder et al., 2011). Therefore, these companies make their own production process and order fulfillment decisions.
The remaining 15% of sales is for private label product sales …show more content…
Low-contact systems are BLANK. After the customer places an order on eBags.com, the customer’s order information is sent to the luggage merchandisers. eBags’s customer contact is similar to a catalog ordering system except customers use the internet instead of a phone. Both contact systems are considered a buffered core system (Schroeder et al., 2011). .
The company’s production is high efficiency, with very little to no input after the order is sent. The only option for the customer to interfere with contact efficiency, is if they called back in to cancel or change their order (e.g., from a red colored bag to a blue …show more content…
This allows vendors to ship directly to customers eliminating the need for eBags to maintain inventory. This allows the company to cut additional costs associated with warehousing inventory. The drop-ship order process also gives the company location independence which brings the use technology to the forefront. Since, "...it 's possible to run a drop shipping business from anywhere with a laptop and an internet connection" (ecommercialfuel.com).
And lastly, eBags has a competitive advantage in providing customer service because of how they track their merchandise and analyze their inventory. They do this by using three systems instead of, only, using the standard two - file transfer protocol (FTP) and electronic data interchange (EDI). The third system, which they invented and use the most, at approximately 60% of their data transfer usage, is called eBags Partner Network (EPN). The EPN allows them to remain transparent with their vendors and helps build and maintain strong relationships with their vendors (Schroeder et al.,
Currently, 85% of eBags product sales are manufactured and drop shipped to customers by luggage manufacturers such as Samsonite, Eastpak, and Briggs & Riley (Schroeder et al., 2011). Therefore, these companies make their own production process and order fulfillment decisions.
The remaining 15% of sales is for private label product sales …show more content…
Low-contact systems are BLANK. After the customer places an order on eBags.com, the customer’s order information is sent to the luggage merchandisers. eBags’s customer contact is similar to a catalog ordering system except customers use the internet instead of a phone. Both contact systems are considered a buffered core system (Schroeder et al., 2011). .
The company’s production is high efficiency, with very little to no input after the order is sent. The only option for the customer to interfere with contact efficiency, is if they called back in to cancel or change their order (e.g., from a red colored bag to a blue …show more content…
This allows vendors to ship directly to customers eliminating the need for eBags to maintain inventory. This allows the company to cut additional costs associated with warehousing inventory. The drop-ship order process also gives the company location independence which brings the use technology to the forefront. Since, "...it 's possible to run a drop shipping business from anywhere with a laptop and an internet connection" (ecommercialfuel.com).
And lastly, eBags has a competitive advantage in providing customer service because of how they track their merchandise and analyze their inventory. They do this by using three systems instead of, only, using the standard two - file transfer protocol (FTP) and electronic data interchange (EDI). The third system, which they invented and use the most, at approximately 60% of their data transfer usage, is called eBags Partner Network (EPN). The EPN allows them to remain transparent with their vendors and helps build and maintain strong relationships with their vendors (Schroeder et al.,