Ll Bean Case Study

510 Words3 Pages
Since its humble beginnings in 1912, L.L.Bean has evolved into a leading manufacturer and retailer of outdoor apparel and sporting equipment. Growing from primarily a direct-sales catalog company, with one product in its first year of operation, L.L.Bean has evolved into a major retailer that now stocks over 200,000 unique items. L.L.Bean’s warehouses stock more than ten million items, available for store and direct-sales via catalogs and LLBean.com. L.L.Bean’s supply chain strategy has evolved to serve its multi-channel business strategy. As such, the company operates two distinct supply chains, one to serve store fulfillment and the second to serve its direct sales catalog and online business needs. To ensure optimal stocking of its distribution centers and stores, L.L.Bean implemented a continuous replenishment strategy. Continuous replenishment eliminates large shipments and replaces it with an…show more content…
The first challenge is the continued volatility of customer demand for premium products due to continued financial instability. Secondly, globalization has increased the number of global competitors in the market, both locally and overseas, leading to greater price competition and customer erosion. Third, import costs are continually rising, eroding savings derived from overseas manufacturing. Finally, global production increases fulfillment cycle times due to shipping and customs delays. Aggregate planning allows L.L.Bean to identify and optimize production requirements to realize their business plans and goals. It improves profitability by reducing variable cost in the supply chain and optimizes the utilization of its manufacturing facilities. It reduces order cycle times, which leads to greater customer satisfaction. Aggregate planning limits overstocking issues and reduces the need for product discounting. Finally, it improves workforce scheduling and optimizes workforce

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