Ebags Case Study

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eBAGS Case Study

Operations

Introduction

eBAGS was officially launched in 1999 with a mission “To be the world's most recommended retailer of bags and related accessories by delivering a trustworthy and innovative customer experience while being a cool place to work, and earning a superior profit” (eBAGS, 2011). Founded by John Nordmark with assistance from Peter and Elliot Cobb, Frank Steed, and Andy Youngs, this group risked all of their life savings to start a storefront online company. This online company specializes in all types of handbags. eBAGS operations consist of quality control, supply chain strategy and management, forecasting, lean thinking, batch process flow and possible introduction of a footwear line.

eBAGS Current Product Flow Analysis

eBAGS currently uses a batch process flow. The batch process “is characterized by production in batches or lots” (Schroeder, Goldstein, & Rungtusanatham, 2011, p.63). The market type is custom. Most customers are already set in their minds what they are looking for and eBAGS deals with manufacturers that offer small quantities of products for custom orders. Any type of bag the consumer is looking for can be found at eBAGS.

The manufacturers that are partnered with eBAGS has high inventory, which eBAGS can retrieve from based on orders placed. The volume of purchase is medium to low with consumers purchasing for personal use. The skill of the labor is high. This is needed in order to understand the order that is placed by the customer, contacting vendors, monitoring shipping from the vendor, shipping account for accuracy, billing the customer at the end of the service, and ensuring the vendor is paid for the product they shipped to the eBAGS customer. The task type is non-routine as each order is different. The online system is general-purpose equipment as it is used to order, track, and return items. The objectives of flexibility and cost are medium while delivery is on time.

Analysis of eBags in the Footwear Industry and Recommended Product Flow Process Based on Type of Customer Order

The footwear industry would be recommended for eBAGS as customers who shop for handbags, travel cases, or sports bags love footwear to match. The batch process would also be the choice in the footwear department. eBAGS would follow the same process with a high volume of shoes from an abundance of manufacturers producing high quality and custom brands. This will allow for customization of color, size, and type. Using this method will allow for online purchases with customer needs in mind. The flexibility, cost, quality, and delivery used in the batch process would be beneficial to the customer who purchases footwear along with their bag of choice. Customers purchasing a sports bag for daily workout would also purchase the sneakers to match instead of waiting for the bag to be shipped to them and going to the department store to find the sneaker.

Analysis of eBAGS in the European Luggage Market and Recommended Product-Process Strategy

Entering a new market inside a different country presents many different challenges. Jon Nordmark and his team at eBAGS were considering entering the European luggage market. eBAGS and all of its products have a lot to offer this new range of customers.

The European luggage market is just as fragmented as the United States once was. Offering only small, family owned businesses that contribute only a small amount of product and limited selling hours, eBAGS sees a need that must be met. Taking in all the information they need to move forward is essential.

First of all, it is crucial that eBAGS examine the market and find suppliers in that region. Talking with manufacturers and creating a good foundation to be able to pull quality products from is essential. Making sure that eBAGS sends a team to speak with potential customers to find out...
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