Executive Summary

For the existence of a company, it is important to make enough profit. To be successful and profitable, you must keep an eye on all costs and deliver good quality products. Also, a good relationship between partners can ensure many advantages.

No Sweat has faced many problems during the last few months. For many reasons, the current supplier has been pushing for higher prices for the production for No Sweat. Also the number of mistakes of the supplier has increased noticeably. This is worrying! No Sweat must search quickly for a new supplier, because if they continue this way, they would make lots of loss and also create a bad reputation.

Last month we were approached by No Sweat to do some research. As a professional marketing team we have done some new researches for choosing a new supplier. We are determined that our advice will help No Sweat.

Firstly, we have selected four potential suppliers from different countries. These suppliers are:

Manifattura Milano SpA, from Italy (current supplier)
Giysi Adam Olun, from Turkey
Drebes Padara Sieviti, from Latvia
Yifu Xi Ye, from China

Secondly, we have compared them by using five important criteria. We have rated al the criteria separately and finally we have chosen one new supplier.

Table of contents

Title page _________________________________ p. 1

Executive summary _________________________________ p. 2

Table of content _________________________________ p. 3

Introduction _________________________________ p. 4

Research approach _________________________________ p. 4

Analysis results _________________________________ p. 7

Conclusion _________________________________ p. 8

Recommandation _________________________________ p. 8

Sources _________________________________ p. 9

Introduction

Nowadays we work for VODW. It’s a marketing bureau who is well known in the Netherlands and also in the Europe. They work for a lot of big companies, for example ABN-AMRO, T-Mobile, ING, Ford, Schiphol, Unilever etc. The company is established in 1983 and it has 100 professionals, who work very hard to be always successful. Our office consists of two pillars: consultancy and interim.

In combination of analysis, creativity and pragmatism, we are able to help our customers to solve their problems and to improve radically their market performance. Our clients have reached demonstrable improvements in customer satisfaction and turnover in a very short time. We do extensive researches for companies and give them good advice. We always strive for successful results and that is why our motto is: Strategy is a matter of doing!

Research approach

The 5 criteria

Price
When choosing a supplier it’s important to know the costs of the products. Because as clothing trading companies you have to be aware of all the financial costs. Currently, No Sweat is dealing with too high costs. We are searching for a supplier who has lower costs and good quality.

We will measure it by the price per clothing

Quality
“No Sweat” wants to give the customers good value for their money, so the quality of the clothes is very important.

We are going to measure the quality with substance and the durability of the clothing for example. Then giving them a number from the scale from 1 to 10.

Terms of delivery
“No Sweat” develops several clothing lines per year and is constantly screening the market for new styling trends. So when they discovered a new trend it’s important to receive the clothing in time so it will still be up to date.
And also for example when a clothing line is quickly sold out and there’s still demand to the clothes, “No Sweat” can order more clothes to sell them in the stores.
We will look at the terms of delivery and give the suppliers a number from the scale from 1 to 10.
Reliability
We believe in partnership and are committed to our customers and suppliers. Our suppliers are partners in a commercial process with the same goal: the development, production and sale of attractive and successful collections. As partners we have to be able to rely on each other.

Looking at punctuality of the agreements for example.

Business profile of supplier
“No Sweat” wishes to increase business in the coming years. We crave longer supply lines and the economy in the country for example is important when choosing a supplier. Also the years in business and the predicted future in business are important.

Rating the suppliers with a number from the scale from 1 to 10.

Comparing the criteria
There are 4 potential suppliers for No Sweat and we are comparing them with our chosen criteria.

Price
If we look at the vendor prices of the countries, China obviously has the lowest prices. For the 3 items it’s only 22, 87. Italy on the other hand demands 55, 80. That’s more than the double of 22, 87. Maybe the difference in between the two countries is the quality, so we will take a look at our other 4 criteria. Latvia and Turkey are midpriced: 44, 49 and 36, 60. If we rank the countries, China will have the first place, followed by Latvia and Turkey and at the bottom, Italy.

China
Latvia
Turkey
Italy

Quality
Quality is measured by the durability of the clothing and the ability of giving samples for example.
Manifattura Milano SpA - 8This supplier always sends samples before they produce on a bigger scale. The quality of the clothes are very good. Looking at these facts we have chosen for an 8.

Giysi Adam Olun - 9
Turkey is also able to supply us from clothes of very high quality level. So we rated Giysi Adam Olun with a 9.
Drebes Padara Sieviti from Latvia - 6
The quality of their clothes is OK, but needs improvement. We have to travel frequently to Latvia for visits and to transfer technology and knowledge. Because of this, we rated Latvia with a 6.

Yifu Xi Ye - 5
The quality of this supplier is low to medium. Constantly attention to quality control is needed. This because we don’t want to damage our reputation. Yifu Xi Ye is rated with a 5.

Terms of delivery

Manifattura Milano SpA - 7This supplier delivers to our warehouse so we don’t have to worry about it. But unfortunately, the the last few months we had to deal with late deliveries. We’re afraid it’s not the last time they will deliver late. That’s why we rated this vendor with a 7.

Giysi Adam Olun - 6
We haven’t got really much information about the terms of delivery of this supplier. We know that they work with a transport company run by family members but that’s all. The supplier is rated with a 6.

Drebes Padara Sieviti from Latvia - 6
This supplier also delivers to our warehouse, that’s a huge plus. We rated them with a 6.

Yifu Xi Ye - 5There’s no specific info given about the terms of delivery so we rated Yifu Xi Ye with a 5.

Reliability

Manifattura Milano SpA - 4Several mistakes in the last few months.

Giysi Adam Olun - 7Willing to work with our current suppliers and prepared to find and offer local alternatives to be even more competative.

Drebes Padara Sieviti from Latvia - 5Not much financial backbone and there’s a chance that this supplier is involved with money laundering in Russia.

Yifu Xi Ye - 5
Poor communication skills.

Business profile of supplier

Manifattura Milano SpA - 4This supplier is tending to lose business because of competion in the country. They are forced to lower the prices to stay in business. The future for this supplier is uncertain.

Giysi Adam Olun - 7This country is a traditionally clothing producing country. Because of this we think it won’t increase fast.

Drebes Padara Sieviti from Latvia - 6Business is well and they are expanding. Unfortunately it is a family business without financial backbone

Yifu Xi Ye - 7
15 years of business and we will give them a oppurtunity to enter a higher segment on the market, so future with this potential supplier is almost certain.

Analysis Results

Manifattura Milano SpA |Giysi Adam Olun |Drebes Padara Sieviti from Latvia |Yifu Xi Ye | |2,5 (x2) |5 (x2) |7,5 (x2) |10 (x2) | |8 (x2) |9 (x2) |6 (x2) |5 (x2) | |7 |6 |6 |5 | |4 |7 |5 |5 | |4 |7 |6 |7 | |36 |48 |44 |47 | |

In the table the total points is given in the bottom row. Giysi Adam Olun has 48 points and is the best supplier for No Sweat.

Conclusion

Looking at the results of our analysis we can conclude that Turkey has the most points. This means that other three suppliers can be called losers. The potential suppliers for No Sweat were generally all evenly matched. As you can see, the difference isn’t so big. Milano scored the least points, followed by China.
Turkey and China care one point. Turkey has the best quality and reliability. Generally, Turkey has also the highest points.
Turkey comes as best supplier from the research.

Recommendation

As you can read from the conclusion, Turkey is the best supplier for the clothing company No Sweat. There are possibilities to get a discount on pallets. We recommend the company to fill as many as possible pallets with their clothing to receive discount.
Giysi Adam Olun has previously sent demos, maybe this can be continued and like Milano send samples of new collections to the company. To do the basic tests, before the company send the products to the customers.

The order cycle time is a month, so it’s smart to order much clothing right away, because it takes a while before it arrives to the company. In this way there are always enough inventories.

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No Sweat