Zappos Case Study
Principles of Operations Management
· Draw and describe the customer benefit package that Zappos provides. Goods? Services? Digital Content? Who manufactures the physical goods? Who is responsible for the quality and delivery of the physical goods?
Answer: One of the company’s core values is that “Deliver WOW through service”. They offer 365 days free shipping in both the ways. The customers might get surprised by the midnight delivery even when the website says as 4-5 business days. Because it is mainly an online based company all the services are online. Once a lady had called the customer service to return the shoes purchased for her husband because he had expired in an accident, the representative had a flower bouquet delivered to the doorstep and billed the receipt to the company without even asking the manager. (authors, 2010) In this way the company supports and values its customers. All the products which are available are manufactured by different brands which are available. The responsibility for the goods which are delivered to the customers is taken by Zappos. For example, when a customer had called in for the problem with her shoes even after using them for almost a year she got them replaced and she even had to keep the old pair. This incident clearly shows that Zappos values its customers and takes the responsibility of the products.
· Identify and describe the primary, support and general management processes needed to execute a customer order at Zappos.
Answer: The primary processes which are needed when customer orders something is 1. Take the order
2. Inbound and Outbound Shipping
3. Inventory management and fulfilment
4. Purchasing, Billing and returns.
These would be basic processes for any online seller to full fill the customer orders. Before even receiving the order the website should be continuously updated with the availability of the product. And once the order is received the shipping should be started. The inventory has to be checked and the products must be fulfilled. After the product is delivered the billing and returns associated with the product is also to be taken care.
The support process which would be involved are paying the salaries of the employee’s in a timely manner, providing them training with the latest updates in the market, providing them with insurances for helping them to lead a good life.
Managing the call centres, Managing the HR’s, managing the managers of different firms comes under the general management processes which are required to run an organisation or ful...