Operations in Ecommerce

oPERATIONS mANAGEMENT |

Operations in e-commerce company |

Case 1 |

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Contents

History 2

Company Strategy 2

The Process 3

Customer care 3

Supply chain 3

Logistics 4

Lead time 4

Inventory 4

History

The company was established in nov-2011 by the CEO, he had a good experience in e-commerce especially with Zazzle.com which is one of the biggest e-commerce companies in the U.S.

According to some studies done by Visa which states that the MENA is the fastest growing market in the world In terms of using credit cards, the CEO’s found that it would be a good opportunity to start such a business, $500,000 investment by a Belgian investor was sufficient enough to start the company, as a start the staff was consisted of 7 members in addition to the CEO, all in 2 rooms and one studio for shooting products.

The team played different role at the beginning, one of their was to travel to Europe and buy the products they were willing to sell, filling the bags and then come back to Jordan in order to shoot them and have them ready to be launched on the website.

The website offer brands of clothes, watches, accessories and sunglasses with high discounts in different campaigns, each campaign last for 3 days, the customer is able to select and buy any product using the credit card or cash on delivery method, after that the company deliver the order to the customer within 27 days.

Company Strategy

The company’s mission was to provide the customers with brands that couldn’t be found in the local market and offer them at high discounts, different strategies was adopted by the company in order to achieve its goals

Low cost leadership strategy: all the products were offered at 50-80 % discounts of the retail price, the company didn’t not buy any stocks after the test of the market, rather than that it followed the just in time inventory, in other words the customer place an order then the company buy that product from the supplier after...