Topic 1- operations
* Product offered * heavy duty bags for bike couriers
Role of operations management
Aim
* to differentiate the business’s products from its competitors rather than using a cost leadership strategy.
Crumpler’s aim has been achieved through: * a better quality product * a vast variety of products in its range * incorporation of new technology * Clever design
Influences on Crumpler’s operations
Globalisation
* Globalization has allowed crumpler to sell to more countries and markets. The expansion has allowed them to open stores in New York, Toronto and Singapore. * Crumpler bags are not available in Greece, Japan, and Hong Kong, China. * Its exports are at 6 million or 50% of total sales. * Recently, they negotiated with Apple, allowing them to provide their bags to more consumers. * Crumpler can outsource its manufacturing and now has a global supply chain. Operations costs have reduced as the other countries had lower costing inputs and labour. |
Economic * There have been many changes recently, * the cost of oil has raised highly-due to the fact that crumpler’s bags using lots of nylon in its productions, its costs have risen highly. * the economy of Europe and Asia have fluctuated-due to the economic slowdown and the global financial crises, sales globally have dropped immensely. * cost of labour in Asia has risen-Asia’s labour |
Technology * There have been recent developments in the production of clothing and communication. Computer aided manufacturing and designing was introduced allowing efficiency to be increased. * Headquarters started using email in its communication to allow faster transmission of messages within the company. * Three dimensional designing software allowed them to create new products virtually and, it could be viewed from a few perspectives. |
Design and manufacturing process * All products are designed in