Jeremiah James S.
Dela Cruz Operational Management
SBENT3O Dr. Federico Ramos Jr.
ZAPPOS CASE STUDY
Case Questions:
1. Draw and describe the customer benefit package that Zappos provides, Identify and
describe one primary value creation, one support, and one general management
process you might encounter at Zappos. (see Exhibit 1.4.)
= The customer benefit package Zappos provided to their customers is the “Deliver Wow
through Service” for customers who ever order from Zappos , and they also provide free
shipping in both directions for all their purchases and they often give customers free upgrade
surprise and 360 return day policy. Main product of Zappos is shoes that’s why it is their
primary value creation. Customer service is their support. The general management process of
Zappos that I encounter is the Operation Management.
2. Explain the role of service encounter and service management skills at Zappos. How
does Zappos create superior customer experience?
= The way Zappos create superior customer experiences is by making sure that their customers
are all happy with their order including those customers that have brought the products pass
the return date by providing them 365 days policy, and also trained their works to be more
implored to use their imaginations on customers that they feels has a tough day should be send
an overnight flower to her door step the next morning.
3. Describe how each OM activity in Exhibit 1.1. impacts the management of both the good
that Zappos sells and the services that it provides. (You might want to build a table like
Exhibit 1.1 to organize your answer.
OPERATIONS IMPACT IN ZAPPOS
MANAGEMENT ACTIVITIES GOODS AND SERVICES
Forecasting Operations Managers should use Forecasting principles to get
estimate of different parameters in the future. Forecasting can help
Operations Manager know what wouldbe the estimated sales of each
item during a certain time. This information is used to align the front
and back end processes. Especially during the holiday time.
Forecasting can also help in managing capacities of both human and
physical resources. Overall, forecasting lets Operations Managers
know if they are moving in the right direction or if some sort of
intervention is needed.
Facility Location In tangible products it has impact in warehouses.
While in service is in Call Center sites.
Facility Layout and Design Call center layouts and cubicles, corporate offices, etc.
Technology Zappos is able to leverage e-commerce, social media platforms,
cutting-edge technology, a unique company culture, and excellent
customer service to sell its products in a way that mirrors the ever-
evolving lifestyles of consumers.
Quality Customer services are what make Zappos special. Call center
employees don’t use scripts and aren’t pressed to keep calls short.
Shipping and return are free.
Inventory/Capacity Zappos it was with fulfillment out of their hands, they were faced
with problems of control over service quality and began to hold
inventory while suppliers became more comfortable with the idea of
online retail.
Process Design Process design helps Operations Mangers calculate process lead time,
waiting time, queue length and other important parameters which
are very important for them to continue to deliver a WOW
experience. Operations Managers can employ tools like Six Sigma to
identify and reduce defects which in turns makes customers happy.
Process design also helps establish correct roles and responsibilities
for each stakeholders.
Job/Service Encounter Design Service encounter design determine the best types of interactions
between service providers and customers, and how to recover from
service upsets”. In this case it is clearly seen that Zappos has
exceptional service providers which are available every time to
resolve customer complaints and have regular interaction with the
customers in order to understand their needs and requirements.
Scheduling In goods it is the global outsourced shipments to Zappos central
warehouses; coordinate factory, shipping, and advertising schedules.
Supply Chain Management Zappos has intentionally made the decision to insource all operations.
By doing this, Zappos is able to ensure the best customer experience.
