Dollinger index

(Kiana) #1
Suzy’s Zoo 487

products such as tablecloths, invitations,
cups, and plates are mass-marketed in high-
volume stores. Revenues from cards have
plateaued, and the overall increases in rev-
enues can be attributed to other products. If
people do not want to buy cards with cute
images anymore, Suzy’s Zoo will put the art-
work on other products that people will
buy—that is why it is found on items like
children’s sleepwear and baby products.
As consumer consciousness has been
raised, recycled paper products have become
more important. Some consumers will not
buy paper goods without the recycling code.
Another change in recent years is that all
Suzy’s Zoo products are bar-coded, which
has allowed Suzy’s Zoo merchandise to be
sold in some of the larger retail outlets.


OPERATIONS


The company is a nonunion operation with
approximately 50 employees. Spafford makes
many of the major decisions regarding the
company except for personnel and financial
matters. Her husband, Ray Lidstrom, serves
as company president and takes the lead in


those areas. The organizational chart for
Suzy’s Zoo Greeting Card division is illus-
trated in Exhibit 3.
Suzy’s Zoo operates out of a two-story,
55,000-square-foot warehouse and office
suite in the Sorrento Valley area of San
Diego. The company moved into this facility
in February 1990. Operations include prod-
uct design, marketing, warehousing, and
shipping. No manufacturing is done on-site;
rather, manufacturing is accomplished
through subcontractors.
The facility is set up to ensure the efficient
flow of products through the warehouse (see
operations diagram, Exhibit 4).
Shipments of manufactured goods arrive
at the receiving dock from various locations
via common carrier on palletized boxes and
in cartons. The boxes are placed into a racked
bulk-storage area adjacent to the receiving
dock. Hand trucks and forklifts are used to
move stock.
As product is needed, cartons are broken
down, and the shelves are stocked in the
“picking” area. The picking area consists of
merchandise organized by product number
on a shelving system, where pickers fill orders

EXHIBIT 3 Suzy’s Zoo Greeting Cards: Organizational Chart

President
Ray Lidstrorm

Suzy Spafford

Graphic arts/
design

Product
development Warehouse

Publishing/
licensing Accounting

Purchasing Credit

Sales

Customer
service
Shipping Production Receiving Data entry
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