Sourcing Strategy

Recommend Sourcing Model to a Sports Apparel and Footwear Brand

About the Client

A global athletic footwear and apparel company wanted to develop their sourcing strategy for the Indian market in the context of advantages of sourcing from the Indian sub-continent.

Project Objectives

Core objective was to assess the advantages of sourcing from the Indian sub-continent, benchmarking other brands and recommending sourcing model for the group. Key questions answered included:

  1. What are the advantages of sourcing from India, Bangladesh, Sri Lanka and Nepal?
  2. What are the sourcing model/ strategies of direct /indirect comparable brands such as Nike, Tommy Hilfiger, Benetton, UCB, Levis, etc.?
  3. What should be the sourcing model for the company?
  1. Assessed country level advantages/ disadvantages:
    • Undertook a country level analysis of India, Bangladesh, Sri Lanka and Nepal including – SWOT; Cost-benefit and Supply chain analysis; and performance of the manufacturers in terms of speed, reliability and quality
    • Trade agreements, tax implications, incentive schemesand their impact on the group’s supply chain were also analyzed
  2. Benchmarking with other established brands
    • Benchmarked the group against direct comparable companies, international brands retailing in India and international players sourcing from Indian sub-continent for exports
    • Benchmarking parameters – sourced categories; scale of sourcing (volume, vendor count); sourcing time, costs & duties structure; trade benefits, incentives & impact; challenges faced
  3. Recommended sourcing model
    • Appropriate mix of source country, category wise
    • Optimal ratio of domestic sourcing v/s global sourcing
    • Tax implications and possible incentives/benefits for the group
    • Cost benefit analysis of implementing the proposed sourcing model