Desings

In: Business and Management

Submitted By mansipambu
Words 289
Pages 2
1. Making 3 columns, we will track the changes in the Bravado! Supply chain within the columns and the “Impact” column will analyze the overall impact of the changes.

Before:

* Design. Create own product with in-house designers. * Materials requisition and payment. Find sources of materials and pay for them; suppliers will require a cash outlay six months before delivery. * Materials. Receive materials and store them in their offices. (Fabric on big bolts is stored offsite.) Some raw materials have to be checked for quality before sending them to the factories. * Garment assembly. Factory handles this part of the process. * Quality control. Verify quality of final garments before shipping them.

After:

The company moved its manufacturing base from Canada.
The company had developed partnerships with two factories in Mexico. One factory worked with Victoria’s Secret, and the other worked with La Perla. Under the new arrangement, the factory in Mexico negotiated and purchased fabric. Bravado! Then bought garments for $6 each instead of buying all the raw materials.
Bravado! paid the factories on 30-day terms when the garments were completed.

Impact:

Two to three months after the company sent its production to Mexico, they started making profits again.
Company was able to lower their COGS by 25 to 30% overnight.
Their business model changed from a lingerie designer to a design, marketing and branding firm.
They gave up individual business clout and became a number-two or –three partners with the companies that manufacture their garments.
These changes helped the company create better-cost advantages due to expansion of their operation outside of Canada, which improved their average cost per unit to fall as scale of output increased.
Company was able to defer its billings…...

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