Link to this deck: https://s.

id/1800flowers
Link to this deck: https://s.id/1800flowers

BLEMBA 25 - Syndicate 5
- Franky (29318322)
-
-
George Gompul Hutauruk (29318426)
Hadi Putra (29318319)
Supplier Collaboration
- Heny Pramita Siwi (29318353)
- Herdi Sularko (29318326)
- Herdiana Wiyono (29318346)

Link to this deck: https://s.id/1800flowers

The Background

● 1-800-FLOWERS.COM: Category Leader, Strong Brand Equity.

● Already become pioneer of technology-based & data-driven business.
● BloomNet Wire Service: Increasing Market Penetration & Market Share.
● Early Adopter in Fast Growing Phone- , Social- & Mobile- Commerce.
● Proven Ability to Leverage Business Platform to Reduce OPEX.
● Strong Balance Sheet: Generating Cash.

Link to this deck: https://s.id/1800flowers

Mission Statements - “Everyday Gift Destination”

Everyday
Gift
Destination

Link to this deck: https://s.id/1800flowers

Business History (1 of 2)

Link to this deck: https://s.id/1800flowers

Business History (2 of 2)

Link to this deck: https://s.id/1800flowers

Business Platform

Link to this deck: https://s.id/1800flowers

Consumer Floral - 1-800-Flowers.com
★ Market Leadership
○ Powerful Brand
○ Significant website traffic &
customer database
○ Social, Local, Mobile Commerce for
Early Adopter & Early Majority
★ Innovative Merchandising
○ Good, Better, Best Offerings
○ “Truly Original” Designs
★ Leverageable Same-Day, Any-Day Delivery
Capability

Link to this deck: https://s.id/1800flowers

BloomNet Network Service
★ Strong Business Solutions
○ A curated network of retail florist utilize
BloomNet’s resources to grow their
businesses profitably.
★ Quality & Innovative Leader
★ Growing Market Penetration
★ Strong Contribution Margin
★ BloomNet Advantages
○ Large Volume of Directable Orders.
○ Better value proposition: Tiered Pricing Model.
○ Expanded Suite of Product and Services:
■ Industry’s First Online Digital Directory
■ Point-of-Sales (POS) System
■ Training & Education Center
■ Website-hosted & Marketing Services

Link to this deck: https://s.id/1800flowers

Gourmet Food & Gift Baskets
★ Relevant Gift Brands Strategy:
○ Fragmented Market.
○ Multi-channel/Ecommerce focus.
★ Cross-brand Leveraging:
○ Multi-Brand website.
○ Centralized Customer Database.
○ Manufacturing Capabilities
○ Product Design & Sourcing

Link to this deck: https://s.id/1800flowers

Key Strategic Priorities
★ Know and Take Care of Customers
○ Provide the right products and services with consistent, excellent quality and value;
help our customers send gift everyday.
★ Maintain our Financial Strength and Flexibility:
○ Focus on reducing operating costs.
○ Strengthen our balance sheet.
○ Add Flexibility to capital structure.
★ Continue to Innovate and Invest for the Future:
○ Invest in Technology.
○ Invest in Brand.
○ Invest in New Growth Opportunities, that could enhance future top & bottom line results.

Link to this deck: https://s.id/1800flowers

Top- & Bottom-Line Growth Strategies
★ Manage those aspects of the business that can be controlled
○ Merchandising, Marketing, Operating Expenses.
★ Seek Organic Growth in Key Business Categories
○ Increase cross-brand marketing & merchandising via new Multi-Brand platform
○ Grow Omni-channel Gourmet Food & Gift Basket Business.
○ Increase BloomNet Wire Service Market Penetration.
★ New Business Development:
○ FruitBouquets.com
○ Social, Local, Mobile Commerce & Engagement.
★ Acquisition Opportunities
○ Gourmet Food & Gift Basket: Social Gifting; Personalization.
★ Enhance Profitability
○ Increase margin and build on Revenue Growth Trends.
○ Drive EBITDA, EPS, and Free Cash Flow.

Link to this deck: https://s.id/1800flowers

 1. What supply chain capability does 1-
800-Flowers.com need to succeed in
its business?

2. Assess the key supply chain

strategies that 1-800-Flowers.com
has adopted since the economic
downturn. Why is supplier
collaboration approach unique and
The Questions sustainable?

3. Should 1-800-Flowers.com go head

with the electronic marketplace
idea?

4. What are your recommendation as

1-800-Flowers.com integrates its
gifts and floral supply chain?

Link to this deck: https://s.id/1800flowers

Q1: Supply Chain Capability of 1-800-Flowers.com has
done to succeed

#1 / Production Sourcing #2 / Inventory Control #3/ Product Design

● For floral products, using hybrid
system to fulfill floral orders :
○ The BloomNet network of
franchised and independent
florists.
○ Company owned distribution
centers.
● For non-floral products, using
direct shipment from its
manufacturing and distribution
facilities to customer.
In 2014, develop an electronic
marketplace would allow for florist-
to-florist transactions and 1-800-
Flowers.com transactions, so the
data could give information about
demand patterns for various type of
flowers and coordinate planning
with growers in advance.
● Involving the florist in product
design to get a unique design
and low price through:
○ Create a magazine,
Floriology, as a place to
exchange ideas between
the florists.
○ Conduct design
competition for florists.

Link to this deck: https://s.id/1800flowers

Q1: Supply Chain Capability 1-800-Flowers.com has
done to succeed
#5 / Supply Chain Integration #6/ IT and Decision System
#4 / Supply Contracts
and Strategic Partnerings Support

Revenue sharing agreement for
floral orders, was as follow :
● The florist who received the
order (i.e., either 1-800
flowers.com or an independent
BloomNet florist) kept
approximately 29 percent of the
total order value.
● The florist who fulfill orders
receive the remaining 71 %.
● Strengthening supply chain by
helping florists grow their
profitability from exclusive
ranging, wholesale
merchandise to floral design
training program.
● Partnering with Facebook,
Twitter, Google+ to reach
customer directly with cost
effective manner.
Data analysis utilization to define :
● Demand of various type of
flowers, so the firm could
coordinate planning with
growers in advance.
● Allocated order to members
using algorithm that
considered: florist’s historical
quality performance, customer
satisfaction rating, and ability
to fulfill order.

Link to this deck: https://s.id/1800flowers

Q2: 1-800-Flowers.com’s response to a Downturn

➔ The economic downturn in 2008 also hit 1-800-Flowers.com’s revenue hard as customers cut their
spending on gifts.

Link to this deck: https://s.id/1800flowers

Q2: 1-800-Flowers.com’s response to a Downturn

➔ Implement Cost Cutting Measures

Divest the Home &

Employee Lay Off Close Traditional CCC Children’s Gifts
Business

● Reduce roughly 15% ● Implement CCC

of FTE in 2008 + system
another 100 in 2009
● Transferred agents to
its home-agent
network

➔ Increase Sales Volume

Steep Discount Marketing Campaign

Link to this deck: https://s.id/1800flowers

Q2: 1-800-Flowers.com’s response to a Downturn

Increase of orders and new customers was insufficient to

offset associated decline in average value per order

Conduct depth-analysis of financial performance FY 2009/10

Result: company had to look beyond beyond the existing
methods and line of products

New focus while

close working
with supply chain
Current focus and
any other Categories based on Price Points
companies’

Good Better Best

Link to this deck: https://s.id/1800flowers

Q2: The Supplier Collaboration Approach

Invest in developing new and exciting products by involving

BloomNet member florists

Creation of Floriology as media for exchanging ideas,

marketing strategies, etc.

a-DOG-able® Collection

Value for
Innovative Unique
Money

Link to this deck: https://s.id/1800flowers

Q3: Go a head for pursuing E-Marketplace idea
Advantages Disadvantages

Fully integrated ● More control to growers and florists ● Doesn’t allow florist-to-florist
transaction

● Critical flowers for local florists are

less available

● Unable to build flower grow

planning from demand patterns

Semi-integrated ● Increasing the availability of critical flowers ● Doesn’t allow florist-to-florist

for local florist transaction

● More control to florists ● Unable to build flower grow

planning from demand patterns

● Less control to growers

Marketplace / ● Allow florist-to-florist transaction ● Less control to growers or florists.

completely virtually
integrated supply ● Increasing the availability of critical flowers
for local florist
chain
● Able to build flower grow planning from
demand patterns

Link to this deck: https://s.id/1800flowers

Q3: Go a head for pursuing E-Marketplace idea

By overcoming their less control to

growers and florists.

➢ Bring new value to the suppliers or lock

them with exclusive contract.
➢ Change how you buy by diverses areas of
spent to be negotiate separately.
➢ Create new suppliers for the competitive
area.

Link to this deck: https://s.id/1800flowers

Q4: Recommendation for Integrating Gift & Floral
Supply Chain

We recommend the completely virtually integrated supply chain,

since nowadays tech-based companies want to outsource any heavy
& burdensome assets away but still manage & control the standard
of delivery & expectation to the consumer (exp: Uber, Airbnb, etc.)
and 1-800-flowers already had captive market and strong tech
capability.

Link to this deck: https://s.id/1800flowers

Q4: Recommendation for Integrating Gift & Floral Supply Chain

Forecasting material based on the historical sales data

analysis (big data analysis)

Integrated procurement through online marketplace

Improve Bloomnet into social network & communication
portal

Just-in-time order fulfillment & real-time inventory system in

National Distribution Center (NDC) or Market Distribution
Center (MDC)

Collaboration with nationwide delivery service company to

provide real-time delivery tracking system to ensure on time
delivery

Integrated system with call center to supplier &

vendor for complaint, claim, & returned goods

Link to this deck: https://s.id/1800flowers

Thank You!

Q&A Session

BLEMBA 25 - Syndicate 5
- Franky (29318322)
- George Gompul Hutauruk (29318426)
- Hadi Putra (29318319)
- Heny Pramita Siwi (29318353)
- Herdi Sularko (29318326)
- Herdiana Wiyono (29318346)

Link to this deck: https://s.id/1800flowers