George Brown College MGMT4043: 1-800-Flowers.com Case Study Solution

This case study analyzes 1-800-Flowers.com's supply chain management, focusing on the challenges the company faces and the strategies it employs to maintain its market position. The analysis includes an examination of the problem statement, which highlights inefficiencies in delivery, missed opportunities, and unfavorable consumer responses. The situation analysis explores the company's supplier relationships, carrier issues, and brand perception. The solution options cover supply chain capabilities, including leveraging existing non-floral supply chains, assessing adopted strategies like cost management and JIT implementation, and the potential of an electronic marketplace. Recommendations include the implementation of a just-in-time (JIT) strategy to reduce costs and outsourcing business processes for efficiency. The case study also addresses the integration of gift and floral supply chains through the BloomNet network, aiming to improve product availability and customer satisfaction. The document provides a structured approach to understanding the complexities of supply chain management within the context of 1-800-Flowers.com.

Running head: SUPPLY CHAIN MANAGEMENT
1-800-Flowers.com: Collaborating with suppliers
Name of the Student:
Name of the University:

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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

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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

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to advertise as well as market the products, then it will not achieve to establish the brand and
may loss the customers which lead to lessen the revenuers.
2. Analysis of the situation
The company has recognized supplier relationships with UPS moreover other carriers for
release of the products to the customers. When there is an increase in price of carriers they
charge to deliver the products and services, then the company passes it to the customers. The
customers are chosen to purchase products close by to prevent shipping charges. The carriers
may knowledge in stoppage of labor, which could offer negative impact on ability of the
company to carry the products on appropriate base to the customers.
The success of company is based on promotion and enhancement of 1-800-Flowers.com
brand will base on achievement to provide a higher quality products and higher level of customer
services (Davis-Sramek et al.). At a point, the company is not perceived the products as well as
services at higher quality, then value of 1-800-Flowers.com would reduce and the business may
loss of sales furthermore there is decline in market share.
In case, the customers are placed floral orders which are fulfilled by the local florists,
such as most of the members of BloomNet. The company is not openly control the florists. In
addition, the non-floral products are sold by the corporation are being distributed to the clients by
third party suppliers (Flynn et al.). The customers are disappointed with presentation of the local
florist and third party vendors, then it is not used services of business when placing the future
orders furthermore there is decline in the market performance of 1-800-Flowers.com.

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In case of unfavorable response of customers towards products, it is difficult to predict
the customer’s demands and sensitive to the economic climate. In order to budget the operating
expenses of the company, they can make assumptions on revenue trends. Selling of the
company’s products are become seasonal, which are focused in fourth calendar quarter base of
Christmas time holidays and second quarter due to Mother’s Day. In order to increase in sales
activity, the company can hire number of employees those are trained and have experience in
delivery of quality products to the customers.
3. Solution options
3.1 Supply chain capabilities 1-800-Flowers.com needs to succeed in business
1-800-Flowers.com requires succeeding in its business by some supply chain capabilities.
The company is working on leveraging the existing non-floral supply chains for delivering floral
products. The company makes its decision areas in outsourcing by seeking to use same day
capability throughout network of BloomNet florist for delivering of non-floral gourmet food gift
items. The company is operated customer service center at its decal suppliers located at New
York, utilized network of home agents as well as outsourcing to offer assistance help on advising
on product selection to monitor fulfillment plus delivery processes (Reimann, and Ketchen).
Therefore, the company changes the modes of transportation for their delivery processes.
3.2 Assess supply chain strategies of 1-800-Flowers.com adopted
The senior management should adopt cost management based strategy where the
products are organized based on three purchase types such as good, better and best focused on
pricing points. The cost based approach focused to base on good materials and it can differentiate
the products of 1-800-Flowers.com from other company those are offering lower cost gifts

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(Setyadi). They have taken decisions on target costing while working with supply chain. At the
design stage, there should be close collaboration with florists.
1-800-Flowers.com takes decisions of quality and inventory management by
implementing just-in-time (JIT) strategies and quality standards for delivering quality floral
products to the customers. This strategy aimed to reduce redundant inventory by means of
delivering the products and materials when the organization requires it (Tate, and Ellram)s. JIT
system is focused to improve efficiency of the floral and non-floral products by quality assurance
program for florist’s suppliers to ensure customer satisfaction and maintain higher quality
standards for the florists to florist’s contact in BloomNet network. The company selects retail
florists based on their design and delivery abilities including historical quality performance.
3.3 Electronic marketplace idea of 1-800-Flowers.com
The electronic marketplace for the flowers would help to improve availability of the
products, lower cost plus improve in coordination with the customers. It would provide a
sustained competitive advantage to 1-800-Flowers.com. The company operated with global
supply management comprised manufacturers, growers, fulfillment as well as distribution centers
and company owned. It is beneficial to place the orders through online and over the phone while
the order fulfillment strategy is based on product type. The company capitalizes the customer
database by means of cost effective and targeted emails for customer notification regarding
product promotion and marketing messages.
3.4 1-800-Flowers.com integrates gift and floral supply chains
1-800-Flowers.com brings florists into the BloomNet network of their organization and
they are introduction of non-floral gift products along with floral supply chains. The company is

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in a way to integrate its gift as well as floral supply chains (Reimann, and Ketchen). The supply
chain does not stop with the florists while in order to address gift supply chain, the company has
included gourmet gift production, facilities of delivery plus production.
4. Recommendations
Implementation of JIT: 1-800-Flowers.com should implement JIT strategy which should
provide benefit on operating with the minimum level of stock of flowers. There should be
reduction in storage plus handling of costs. There is reduction of size of warehouse space require
along with amount of employees required to perform the delivery. Instead of investing into the
stock, the supply chain is linked directly to the demands.
Outsourcing the business processes: There is advantage of cost savings due to
outsourcing of the delivery process of 1-800-Flowers.com. The provided quality of the services
is higher as it ensures that low cost is not mean for lower quality. It also leads to productivity
plus business efficiency in the business process which can contribute to bottom line of the
company.

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References
Davis-Sramek, Beth et al. "Understanding The Present By Examining The Past: Imprinting
Effects On Supply Chain Outsourcing In A Transition Economy". Journal Of Supply Chain
Management, vol 53, no. 1, 2016, pp. 65-86. Wiley.
Flynn, Barbara et al. "Supply Chain Management In Emerging Markets: Critical Research
Issues". Journal Of Supply Chain Management, vol 51, no. 1, 2014, pp. 3-4. Wiley.
Omoruyi, Osayuwamen, and Chengedzai Mafini. "Supply Chain Management And Customer
Satisfaction In Small To Medium Enterprises". Studia Universitatis Babe-Bolyai Oeconomica,
vol 61, no. 3, 2016, pp. 43-58. Walter De Gruyter Gmbh.
Reimann, Felix, and David J. Ketchen. "Power In Supply Chain Management". Journal Of
Supply Chain Management, vol 53, no. 2, 2017, pp. 3-9. Wiley.
Setyadi, Antonius. "Does Green Supply Chain Integration Contribute Towards Sustainable
Performance?". Uncertain Supply Chain Management, 2019, pp. 121-132. Growing Science.
Tate, Wendy L., and Lisa M. Ellram. "Service Supply Management Structure In Offshore
Outsourcing". Journal Of Supply Chain Management, vol 48, no. 4, 2012, pp. 8-29. Wiley.

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