Farmgirl Flowers: Cultivating Success by Selecting Strategic Partners to Enhance Its Bouquet Deliveries

Christina Stembel, the founder and CEO of Farmgirl Flowers Inc., has always emphasized quality, speed, and efficiency in her San Francisco–based online flower delivery company. Her teams have operated like assembly lines, shipping 10,000 bouquets daily during peak periods, which has ensured competitive pricing. Before the pandemic, Stembel expands Farmgirl Flowers Inc. to Ecuador, and when it is forced to close its San Francisco facility, she shifts all production to Ecuador.<br><br>Valentine’s Day 2023 poses a challenge, as shipping the flowers from South America takes three days, while South American prices are higher due to pandemic-related supply chain issues, ultimately resulting in customer dissatisfaction. Stembel aims to regain competitiveness by bringing operations back to North America. But the questions remain: how and where should this happen?

This case can be used in courses at the undergraduate, graduate, and executive levels. It is most suitable for classes on transportation/logistics management, supply chains, or business strategy. The case is best used at the point of the course when students have already gained an understanding of the package delivery industry and can comprehend different issues that can arise in terms of optimizing transit time, customer satisfaction, and cost. The case highlights the importance of selecting optimal fulfillment centre locations, considering factors like cost, proximity to customers (population), and operational efficiency. After working through the case and assignment questions, students are going to be able to do the following:<br><br><ul><li>Consider the risks associated with relying on distant fulfillment centres, such as delays and inventory shortages, as well as strategies for mitigating these risks.</li><li>Understand the concept of shipping zones and how they impact shipping costs based on the distance between the origin and the destination.</li><li>Assess how optimization efforts can impact the customer experience, including shipping times, product availability, and overall satisfaction.</li><li>Explore the concept of “zone mix” and its importance in minimizing shipping costs, by strategically allocating shipments across different shipping zones.</li><li>Examine how the geographical distribution of customers and fulfillment centres affects shipping costs and delivery times.</li></ul>

• floral supply chain, shipping zones, opt