Supply Chain Management - L.L. Bean Essay - 2520 Words

Mark Cronin MBA 600 – Production Operations Management Final Project Report - June 2, 2003 Supply-Chain Management Executive Summary – By adopting five new proposed initiatives, the L.L.Bean Factory Store Division can provide brand appropriate product to customers and it can also improve its in-stock position and inventory turns while reducing costs in the Supply-Chain and management of corporate inventory. If we leverage a Special Purchase strategy and negotiate with existing vendors to sell us all their manufacturing defects of existing L.L.Bean products at an agreed upon reduced rate, we can provide better costs for the full price products and higher cost recoveries for deleted merchandise.†¦show more content†¦During the past year (Fiscal 2002), our division undertook a strategic initiative to transition from marketing itself as a separate or sub-brand to being the liquidation channel for the L.L.Bean brand. This was no small feat and a point that should not be glossed over or taken lightly in an organization as large as L.L.Bean. There were many meetings at all levels of the company to help employees, who were still with the company after two major downsizing periods, understand the significance of this change in philosophy. There are currently four sub-channels used to achieve the liquidation and inventory management goals of the L.L.Bean Factory Store Division: 1.) Mail Order 2.) E-Commerce 3.) Outlet Stores 4.) Off-Site Sale Events Current sources of product for the Factory Store Division are discontinued merchandise, customer returns not suitable for full price sales and special purchases. Special purchases can be defined in the following categories: Overstocks, Cancellations and Irregulars – This is L.L.Bean labeled product available to the open market by our vendors. Manufacturing Irregulars – All saleable irregulars produced in L.L.Bean manufacturing facilities. Make Ups – Excess fabric, yarns and materials owned by L.L.Bean made into product under the â€Å"L.L.Bean Factory Store† label. Program Buys – Product programmedShow MoreRelatedL.L. Bean663 Words   |  3 PagesStrategic Supply Chain Management Case Study: L. L. Bean, Inc. 1. Based on the information contained in the short case description, and on your own observations, what do you feel characterizes L. L. Bean’s competitive strategy? What are the most essential â€Å"customer needs† that must be met by L.L. Bean L.L. Bean, Inc. is a mail-order, online and retail company based in the Unites States. The competitive strategy of L.L. Bean comes from its focus towards the customers and the satisfaction ofRead MoreL.L. Bean, Inc.: Item Forecasting and Inventory Management1742 Words   |  7 Pages#:  IMB323-PDF-ENG Founded in 1997, Subhiksha had grown from one store in 1997 to more than 1000 retail outlets in 2008. 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