FedEx Corporation Annual Report 2007

"Crocs gained global advantages when FedEx changed the conversation about what was possible."

"When Crocs started talking to FedEx three years ago, we were a small company that wanted to break the mold in our industry. Footwear has always been a seasonal business where retailers typically place orders six months ahead. We wanted a greater ability to match styles and colors to changing demand. In a series of discussions, FedEx coached us on adopting a direct distribution model that would give us the just-in-time replenishment capabilities of a high-tech manufacturer - and save $5 million annually on traditional warehousing and distribution. These discussions brought our vision of rapid replenishment to life with a solution unlike anything in our industry.

"We've relied on our relationship with individuals across FedEx as we've grown from $13.5 million to more than $350 million in sales over the past three years. Apart from providing solutions for a wide range of issues, they've been a great sounding board for us. It's not an overstatement to say that our conversations with FedEx have been instrumental in our success."

- Scott Crutchfield, VP of Operations,
Crocs, Inc.

With FedEx shipping options from China, Crocs has turn-on-a-dime control of its distribution.

Crocs invites everyone to "walk a mile in our shoes," but those shoes typically cross several thousand miles to reach devoted customers' feet. FedEx provides the company with a suite of services to move products manufactured in China to the U.S. market, matching speed to demand.
Using an innovative technology solution developed by FedEx, Crocs can select the best mode of delivery for a shipment and generate the appropriate U.S. domestic shipping labels in China. During peak seasons - and whenever the hottest-selling shoes and new releases need to get into stores quickly - FedEx Express moves bulk shipments by air and breaks them down on arrival for delivery to retailers. More classic stock moves in bulk via ocean shipments, arranged by FedEx Trade Networks, for final delivery through FedEx Ground and FedEx Freight.
Whether the company needs to meet a surge in demand for a special product release, or a retailer's request for as few as 24 pairs, FedEx has given Crocs the flexibility to choose the distribution method to match.