Crocs’ Core Competencies

1. Crocs’ Core Competencies

Crocs’ success is based on its ability to leverage its core competencies to react to the global shift in the economy. They have five key core competencies. First, they have a highly flexible supply chain. Second, they have strong distribution and warehousing. Third, they have relationships and contracts with manufacturers. Fourth, they have global manufacturing facilities and finally, they have full control of their intellectual property.

1. Crocs plan its production and inventory

Crocs’ supply chain is their advantage and gives them the ability to manage inventory across multiple levels of the supply chain.. Crocs also have full control of distribution and warehousing, which allows them to manage the flow of inventory and keep their finished goods inventories low.

There are a number of benefits to managing their supply in this way. First, it quickly adjusts manufacturing levels as demand changes. Second, there is low turn-around time to get products to market quicker. Finally, it allows retailers the ability to ramp up orders mid-season and get products out on time.

1. Crocs is considering three strategic alternatives.  Discuss how each alternative will influence its operations and supply chain.  Consider aspects of production, inventory, and supplier management.

a.    Further vertical integration into materials

The Just-In-Time Inventory System will be valuable, as raw materials will be received just before the compounding/molding process starts. Also, Information Sharing with Material Suppliers will allow Crocs to keep inventories of raw material lower- lessening the bullwhip effect.