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17-3

CLIENT

  • House of Quirky is a Women’s Apparel company with 8 brands sold in over 30 countries, with a multi-channel sales network across global retail, distributors and online. Their product base is high mix low quantity, developing over 7000 new products annually across multiple categories.

PROJECT

  • Appointed to define the sourcing and procurement operations strategy. The business had seen significant growth over a 10-year period with a supply chain structure that had grown organically as markets and channels grew globally. The supply chain was diverse and non-aligned with half business centric and the other focused on aims of the China-based entity.
  • To facilitate business growth into global retail the company needed to streamline the supply chain strategy and realign to the 5-year business plan. Amalgamate all supply organisations into one operation with one vision servicing global operations across; sourcing, product development, procurement, technical and quality, and warehouse and logistics.

ACTIONS

  • Assessed 5-year business strategy and objectives, global go to market process.
  • Developed supply chain strategy based on business objectives and vision. Mapped process and structure from design, through to pick n pack and customer distribution. Created new process, gap analysis, budget (facility, assets, technology and people) and implementation plan with stakeholder buy-in.
  • Relocated China operations into one facility previously in three and transferred positions that had been duplicated in HO to China supporting; raw material sourcing and development, product development, category management, technical, quality, logistics & warehousing, and admin.
  • Assessed existing supplier base, developed and deployed new supplier matrix to drive price competition, support product development cycle, raw material/product cost breakdown, capacity management, reduce product lifecycle, compliance and quality objectives that were centralised to the new operation.
  • Consolidated raw material procurement through nominated suppliers to leverage spend, speed development process, pre-allocation to finished goods suppliers, improve quality and brand consistency.
  • Established development and sampling team to speed NPD process improving responsiveness to market, standardise product production process and reduce capacity risk in the PO allocation process allowing flexibility to negotiate price and reallocate due to supplier over capacity.
  • Implemented global cross functional calendar to ensure process visibility and cross-functional team alignment to critical path and milestone responsibility.
  • Educated, drove range plan fulfilment by ensuring design, designed to a price point rather than negotiating or substituting raw materials to achieve the price point.
  • Created China finished goods central stock hub to supply US, EU and Australian markets B2B and B2C, to improve global stock utilisation reduce transfers and streamline supplier payment.

RESULTS

  • Maintained US$2.6 million budget, reducing total overheads by US$500K or 19%
  • Total average price improvement 20% (9% from VAT rebate)
  • First time quality inspection approval improved 16% to 92% total
  • Reduced international logistics lead-time door to door by 5-7 days’, airfreight reduction 27%.
  • Reduce Product Cycle Time by 28 days.

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