1-800-Flowers.com: Collaborating with suppliers

Running head: SUPPLY CHAIN MANAGEMENT
1-800-Flowers.com: Collaborating with suppliers
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1SUPPLY CHAIN MANAGEMENT
Table of Contents
1. Problem statement.......................................................................................................................2
2. Analysis of the situation..............................................................................................................3
3. Solution options...........................................................................................................................4
3.1 Supply chain capabilities 1-800-Flowers.com needs to succeed in business........................4
3.2 Assess supply chain strategies of 1-800-Flowers.com adopted.............................................4
3.3 Electronic marketplace idea of 1-800-Flowers.com..............................................................5
3.4 1-800-Flowers.com integrates gift and floral supply chains.................................................5
4. Recommendations........................................................................................................................6
References........................................................................................................................................7

2SUPPLY CHAIN MANAGEMENT
1. Problem statement
1-800-Flowers.com is US gifts as well as flowers business has a good brand reputation in
the distribution of product. The online market for selling of flower as well as gifts was changing
rapidly due to new opportunities for market efficiencies as well as expansion. Apart from this,
the business also faces problems in current operations. Following are the problem areas which
are required to address such as:
Inefficiencies in delivery: In the floral gifts, there is issue in delivery because of non-
availability of the quality of flowers related to product design for meeting customer’s demands.
Missed opportunities and loss of sales/market share: Products in the categories are
procured from figure of outlets such as retail shops, mail order and online retailers. Competition
in the company leads to price reductions, lessen in company revenue, low the profit margins and
loss of the sales and market share.
Unacceptable market performance: The Company is focused on floral as well as non-
floral gift products. The company is doing well in extended product lines such as gift baskets,
gourmet fruits, fruit bouquets furthermore others, it is expected to continue incur the cost in
marketing of the products (Omoruyi, and Mafini). When the customers are not continued to find
the product lines in the company, then the company is not able to generate revenue to
compensate cost and it may result in negative operations.
Unfavorable consumer response to a product or service: Most of the customers of the
company are not aware of the non-floral products of 1-800-Flowers.com. The company is failed