Zappos Case

Chapter 5 Assignment 2

1. Read Zappos 10 core values. Watch the Zappos family video. How do the core values promote customer service? Which one did you find the most interesting? Why?

I find the Create Fun and a little weirdness the most interesting core value. I believe this to be so very important in every company, large or small, because without fun in our daily lives we become too serious and lose sight of the things that make others smile. Without fun and weirdness, we become too stuffy and in turn, that is how we begin to treat others. We would begin to treat customers and co-workers like robots, and not like people.

2. You've seen what Zappos does for its employees, but how does this translate to good customer service? Watch this ABC Nightline report and make a list of what Zappos does for its customers that is beyond normal expectations (i.e., the WOW).

Happy employees help to ensure happy customers. Zappos wants to make sure they build the absolute best company culture and build a family environment. This enables the employees to work hard and play hard.

Ensure the provide the best customer service, ensure they provide the best customer experience, 365 day return policy with free shipping both ways, actual human beings answering the phone in the call center, build customer loyalty by shopping up to three competitors for the item the customer is looking for if Zappos is out of stock on it, and call center is not outsourced.

3. Good service is supported by efficient operations. View this video of the technology at Zappos' warehouse. Describe the system and how it differs from a traditional distribution center. How does the technology reinforce the corporate culture of service?

This area of the warehouse uses Kiva robots instead of the traditional conveyor systems. The Robots move the inventory pods to the line workers / operators and they remain in nearly one spot all day instead of moving around constantly throughout the warehouse. The Kiva systems provides a more efficient training cycle time of under ½ a day versus nearly 4 days in the traditional warehouse system. The Kiva area is quieter and provides better ergonomics for the employees, they are able to do twice the work in half the time providing better accuracy, more efficient, and a safer environment with no incidence to date compared to 2-3 per week in the traditional area. They are able to process a customer order in roughly 12 minutes in the Kiva area, whereas in the traditional storage area it is anywhere between 48 minutes to 3 ½ hours depending on the complexity of the order. The company is experiencing tremendous energy savings by being able to have no lights on where the pods area and climate control only in spots where the employees work versus an entire warehouse. Zappos is saving on labor costs as well,