Air shipment will give customers a “Wow” feeling and then they told a bunch of people which broadcast a better brand reputation in order to increase sales volume. Customers will have a distinctive kinds of fastest speeding purchasing that notably improve customer satisfaction compared with other rivals. It is considered as a competitive advantage compared to others and can simultaneously get the instant feedback to produce upgraded product(shoes).
Yes, it worth the cost. they maximized the utility within limited investment costs. In the early days, Zappos didn 't really have a choice; they couldn 't afford anything else except ground shipping. They can either spend it on marketing, trying to get new customers, or they can spend it on our …show more content…
However, many of them were resolved within the case. Fortunately enough, there were a few ends left untied specifically related to Zappos’ supply chain. In their supply chain they dealt with many inefficiencies that go beyond their organization. However, we will only discuss a couple. One is the number of hands the goods pass through before it gets to Zappos’ Kentucky distribution center. The shoes are made in China, shipped to shoe companies in the United States, and then reaches Zappos Kentucky distribution center. If I were to expand the business I would address the unnecessary or excess shipping that the product has to go through to get to Zappos’ distribution center. Doing so would reduce the amount of time spent on shipping the shoes to the distribution center and increase their supply chain efficiency. Second, I would also look into reducing inefficiencies in truckloads going to the distribution center as well. This would be executed by investing in a truck fleet vertically integrating another process into Zappos’ supply chain in order to reduce inefficiencies. Zappos currently has an issue with suppliers delivering partial truckloads with frequent deliveries causing inefficiencies in distributions and creating traffic issues. Lastly, if the organization wants to continue growing they need to expand internationally. Currently, their operations only reside in the United States. Granted the case did mention that the company is providing their services in other places like Canada, but it isn’t to the same degree as they do in the United States. I would take their business model and apply it to Canada, but it would have to be modified in order for it to work there. This adjustment would be due to culture differences and so on. As the expansion goes on, the costs resulted from the investments on fixed assets such as call center and distribution
Yes, it worth the cost. they maximized the utility within limited investment costs. In the early days, Zappos didn 't really have a choice; they couldn 't afford anything else except ground shipping. They can either spend it on marketing, trying to get new customers, or they can spend it on our …show more content…
However, many of them were resolved within the case. Fortunately enough, there were a few ends left untied specifically related to Zappos’ supply chain. In their supply chain they dealt with many inefficiencies that go beyond their organization. However, we will only discuss a couple. One is the number of hands the goods pass through before it gets to Zappos’ Kentucky distribution center. The shoes are made in China, shipped to shoe companies in the United States, and then reaches Zappos Kentucky distribution center. If I were to expand the business I would address the unnecessary or excess shipping that the product has to go through to get to Zappos’ distribution center. Doing so would reduce the amount of time spent on shipping the shoes to the distribution center and increase their supply chain efficiency. Second, I would also look into reducing inefficiencies in truckloads going to the distribution center as well. This would be executed by investing in a truck fleet vertically integrating another process into Zappos’ supply chain in order to reduce inefficiencies. Zappos currently has an issue with suppliers delivering partial truckloads with frequent deliveries causing inefficiencies in distributions and creating traffic issues. Lastly, if the organization wants to continue growing they need to expand internationally. Currently, their operations only reside in the United States. Granted the case did mention that the company is providing their services in other places like Canada, but it isn’t to the same degree as they do in the United States. I would take their business model and apply it to Canada, but it would have to be modified in order for it to work there. This adjustment would be due to culture differences and so on. As the expansion goes on, the costs resulted from the investments on fixed assets such as call center and distribution