Zappos supply chain
a) Customer based segmentation
b) Product lines based Segmentation
Strategy to optimize supply chain performance of Alpha Systems, Inc. (ASI)
1. Procurement – ASI can categorize the procurement requirements based on the customer based segmentation. Achieving procurement according to the strategic importance and service standards will yield to higher reliability of deliveries to the superior valued customers. Further, procurement can focus on mass-market consumer channels customer segment by improving co-ordination of demand and fulfillment with the manufactures. Primary reason for doing so is order cycles for this segment is on weekly basis and replenishment demand is 48-75 hours as compared to other factors. Another factor is specialty retailers and online outlets can maintain their own inventory. Additionally, procurement process in both specialty retailers & online outlets should consolidate orders according to customized and non-customized product line segmentation to take advantage of economies of scale and quantity discounts.
2. Manufacturing – Manufacturing process can be expedited by design collaboration between ASI and Chinese manufacture. Designing the product for postponement and performing late-stage product completion as close to demand as possible is vital for reliability to valued customers. Postponement can be employed across fast or slowing products/ customized and non-customized product line to improve the delivery process. With postponement comes greater levels of customization to improve the reliability of deliveries thus increasing the delivery cycle times. ASI should leverage on this process to identify differences of customized and non-customized product line segmentation manufacturing requirements and cater according to the valued customers. To avoid back order situation, Chinese manufacture should be advised to become effective design coordinators early in the process.
3. Logistics value creation – Strategizing the
b) Product lines based Segmentation
Strategy to optimize supply chain performance of Alpha Systems, Inc. (ASI)
1. Procurement – ASI can categorize the procurement requirements based on the customer based segmentation. Achieving procurement according to the strategic importance and service standards will yield to higher reliability of deliveries to the superior valued customers. Further, procurement can focus on mass-market consumer channels customer segment by improving co-ordination of demand and fulfillment with the manufactures. Primary reason for doing so is order cycles for this segment is on weekly basis and replenishment demand is 48-75 hours as compared to other factors. Another factor is specialty retailers and online outlets can maintain their own inventory. Additionally, procurement process in both specialty retailers & online outlets should consolidate orders according to customized and non-customized product line segmentation to take advantage of economies of scale and quantity discounts.
2. Manufacturing – Manufacturing process can be expedited by design collaboration between ASI and Chinese manufacture. Designing the product for postponement and performing late-stage product completion as close to demand as possible is vital for reliability to valued customers. Postponement can be employed across fast or slowing products/ customized and non-customized product line to improve the delivery process. With postponement comes greater levels of customization to improve the reliability of deliveries thus increasing the delivery cycle times. ASI should leverage on this process to identify differences of customized and non-customized product line segmentation manufacturing requirements and cater according to the valued customers. To avoid back order situation, Chinese manufacture should be advised to become effective design coordinators early in the process.
3. Logistics value creation – Strategizing the