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Case Study 5

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Case 5
Kathryn From and Bravado! Designs
GM 560
DeAngela L. Dixon
February 6, 2011

1. Track the changes in the Bravado! supply chain in the “Before” and “After” columns. The last 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 material 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. * Distribution. Ship material to three to five local factories. * Garment assembly. Factory handles this part of the process. * Quality control. Verify quality of final garments.
After
* The company moved its manufacturing base from Canada. * The company developed partnerships with two factories in Mexico. One company worked with Victoria’s Secret and the other worked with La Perla. * The factory in Mexico negotiated and purchased fabric. * Garments were brought for $6 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. * The company was able to lower cost of goods sold by 25 to 30 % overnight. * The company is a design, marketing, and branding firm that happens to source lingerie. * Bravado! is a solid number-two or number-three partner with companies that manufacture their garments. * These changes helped the company create better cost advantages due to their expansion of their operation outside of Canada.

2. Bravado! still needs a banking relationship. Having an established

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