Tracy Goodhew
Capella University
Bus-FP3022
October 22, 2015
Business Model
L. L. Bean has had a growing and changing business model since 1911. The main focus is and has always been catalog sales of outdoor apparel and gear. The L. L. Bean company began with the mailing of catalogs featuring one product, outdoor hunting shoes, and now “The outdoor apparel and gear maker mails more than 200 million catalogs per year” (Reed, S., 2009). Of course, in this new business era L.L. Bean has evolved and now does much of its business online. “Bean's golden rule was to "sell good merchandise at a reasonable profit, treat your customers like human beings, and they will always come back for more". His model, still used today, was to build customer loyalty by providing exceptional service” (Pulido, I.)
Supply Chain
“Distribution operations are located in Maine and employed nearly 2,500 people during the peak business season in 2014. Over 15 million packages were shipped during 2014, with over one million packages going out during our busiest week. The hub of the L.L.Bean distribution operation is a one-million-square-foot, state-of-the-art facility with the capacity to hold 10 million units. Manufacturing facilities are located in Brunswick and Lewiston, Maine, where over 350 employees produce such iconic products as the Maine Hunting Shoe®, the L.L. Bean Boot and the Boat and Tote® Bag. Customer demand for the iconic L.L .Bean Boot remains high, with a unit demand of nearly 450,000 pairs in 2014” (LL Bean, 2015).
As you can see, there is a heavy burden on LL Bean’s supply chain. LL Bean’s presence includes retail and outlet stores in the United States, Japan, and China, and sells worldwide via the internet, while continuing its catalog sales in over 160 countries. (Cooke, J., 2011) To manage this
