Ebags Case Study
eBAGS Case Study
Operations
Introduction
eBAGS was officially launched in 1999 with a mission “To be the world's most recommended retailer of bags and related accessories by delivering a trustworthy and innovative customer experience while being a cool place to work, and earning a superior profit” (eBAGS, 2011). Founded by John Nordmark with assistance from Peter and Elliot Cobb, Frank Steed, and Andy Youngs, this group risked all of their life savings to start a storefront online company. This online company specializes in all types of handbags. eBAGS operations consist of quality control, supply chain strategy and management, forecasting, lean thinking, batch process flow and possible introduction of a footwear line.
eBAGS Current Product Flow Analysis
eBAGS currently uses a batch process flow. The batch process “is characterized by production in batches or lots” (Schroeder, Goldstein, & Rungtusanatham, 2011, p.63). The market type is custom. Most customers are already set in their minds what they are looking for and eBAGS deals with manufacturers that offer small quantities of products for custom orders. Any type of bag the consumer is looking for can be found at eBAGS.
The manufacturers that are partnered with eBAGS has high inventory, which eBAGS can retrieve from based on orders placed. The volume of purchase is medium to low with consumers purchasing for personal use. The skill of the labor is high. This is needed in order to understand the order that is placed by the customer, contacting vendors, monitoring shipping from the vendor, shipping account for accuracy, billing the customer at the end of the service, and ensuring the vendor is paid for the product they shipped to the eBAGS customer. The task type is non-routine as each order is different. The online system is general-purpose equipment as it is used to order, track, and return items. The objectives of flexibility and cost are medium while
Operations
Introduction
eBAGS was officially launched in 1999 with a mission “To be the world's most recommended retailer of bags and related accessories by delivering a trustworthy and innovative customer experience while being a cool place to work, and earning a superior profit” (eBAGS, 2011). Founded by John Nordmark with assistance from Peter and Elliot Cobb, Frank Steed, and Andy Youngs, this group risked all of their life savings to start a storefront online company. This online company specializes in all types of handbags. eBAGS operations consist of quality control, supply chain strategy and management, forecasting, lean thinking, batch process flow and possible introduction of a footwear line.
eBAGS Current Product Flow Analysis
eBAGS currently uses a batch process flow. The batch process “is characterized by production in batches or lots” (Schroeder, Goldstein, & Rungtusanatham, 2011, p.63). The market type is custom. Most customers are already set in their minds what they are looking for and eBAGS deals with manufacturers that offer small quantities of products for custom orders. Any type of bag the consumer is looking for can be found at eBAGS.
The manufacturers that are partnered with eBAGS has high inventory, which eBAGS can retrieve from based on orders placed. The volume of purchase is medium to low with consumers purchasing for personal use. The skill of the labor is high. This is needed in order to understand the order that is placed by the customer, contacting vendors, monitoring shipping from the vendor, shipping account for accuracy, billing the customer at the end of the service, and ensuring the vendor is paid for the product they shipped to the eBAGS customer. The task type is non-routine as each order is different. The online system is general-purpose equipment as it is used to order, track, and return items. The objectives of flexibility and cost are medium while
References: eBags. (2011). Values and Mission. Retrieved March 25, 2011 from http://www.ebags.com/about/index.cfm?Fuseaction=values ResellerRatings. (n.d.) eBags. Retrieved April 2, 2011, from: http://www.resellerratings.com/store/eBags Schroeder, R.G., Goldstein, S.M., & Rungtusanatham, M.J. (2011). Operations Management. Contemporary Concepts and Cases. (5th ed.) New York: McGraw-Hill/Irwin Appendix Figure 1. eBAGS system process for orders Figure 1 [pic]