Skip Hop Company Supply Chain Management Sytem
Introduction
When in 2003, two new parents searched for a diaper bag that looked great and worked well, they found nothing. So they invented something. Almost decade and hundreds of products later, Skip Hop grew into a well-recognized global brand that is known for its innovative, great design and the highest quality baby products.
Even though company has only 50 employees and is considered a small company, it profited $7 million last year alone and has more than 60 retail locations all over the globe. In order to compete in a very tough baby product business against lager companies like Fisher-Price company has to have a smoothly working supply chain. Despite the fact that Skip Hop has no resources to purchase and integrate an enterprise resource planning (ERP) system, they found some interesting ways to create a successfully supply chain infrastructure.
Skip Hop Supply Chain Overview
One of the most important dilemmas every baby product company has to deal with is, of course, a manufacturing location. Unfortunately, for entrepreneurs today’s retailers want to have at least 50% margins which makes it impossible for small companies, like Skip Hop, to manufacture products locally, since it would be not profitable. While company would benefit from shorter lead time, smaller batch orders and better quality control – all of which is provided by local manufacturing - Skip Hop has to manufacture all of its products in China in order to remain competitive.
In situations when company’s main office is located in New York but all the manufacturing is happening half-way across the World, quality control problems occur. Since product safety, attention to details and impeccable work ethics are most important factors in baby product company’s success, Skip Hop created Manufacturing Control Group (MCG) in China. This group makes sure that all of the supplies are safe and comply with all the standards like physical, mechanical,
When in 2003, two new parents searched for a diaper bag that looked great and worked well, they found nothing. So they invented something. Almost decade and hundreds of products later, Skip Hop grew into a well-recognized global brand that is known for its innovative, great design and the highest quality baby products.
Even though company has only 50 employees and is considered a small company, it profited $7 million last year alone and has more than 60 retail locations all over the globe. In order to compete in a very tough baby product business against lager companies like Fisher-Price company has to have a smoothly working supply chain. Despite the fact that Skip Hop has no resources to purchase and integrate an enterprise resource planning (ERP) system, they found some interesting ways to create a successfully supply chain infrastructure.
Skip Hop Supply Chain Overview
One of the most important dilemmas every baby product company has to deal with is, of course, a manufacturing location. Unfortunately, for entrepreneurs today’s retailers want to have at least 50% margins which makes it impossible for small companies, like Skip Hop, to manufacture products locally, since it would be not profitable. While company would benefit from shorter lead time, smaller batch orders and better quality control – all of which is provided by local manufacturing - Skip Hop has to manufacture all of its products in China in order to remain competitive.
In situations when company’s main office is located in New York but all the manufacturing is happening half-way across the World, quality control problems occur. Since product safety, attention to details and impeccable work ethics are most important factors in baby product company’s success, Skip Hop created Manufacturing Control Group (MCG) in China. This group makes sure that all of the supplies are safe and comply with all the standards like physical, mechanical,