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.
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:
- What are the advantages of sourcing from India, Bangladesh, Sri Lanka and Nepal?
- What are the sourcing model/ strategies of direct /indirect comparable brands such as Nike, Tommy Hilfiger, Benetton, UCB, Levis, etc.?
- What should be the sourcing model for the company?
- 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
- 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
- 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