Sourcing Strategy - Wazir Advisors

Strategy > Consumer Products and Retail > 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:

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?

Deliverables:

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