TYPE OF SUPPLY BASE
When choosing what type of supply base to source from HL for COS must first decide whether they want to source from a narrow or wide supply base. Both have advantages and disadvantages, for example a wide supply base offers choice and flexibility as well as variety but a narrow supply base creates greater negotiating power as you build up a closer relationship with the supplier. As HL for COS is a carefully selected range of just 32 pieces a narrow supply base is more appropriate in this case as it offers the chance to have a greater involvement and control over the production of the garments. This would be a necessity when creating the HL for COS range.
The H&M group use Hubs when sourcing their garments this means that they have smaller offices regulating and controlling ...view middle of the document...
However it will cost more to continually travel between the UK based HO and the country the supplier is situated and for some suppliers particularly those based in far east countries like China communication can become difficult due to time differences and language barriers. In these instances it seems appropriate to suggest an agent, a third party that communicates between you and the supplier, the will often be based in the country the supplier is in and speak the language. However, bringing in an external party leaves less control for the company and therefore standards may slip concerning both the ethical values of the supplier and quality of the garment making. You also have to pay the agent which will decrease profit margin slightly. Finally, a wholesaler is used for buying ready made garments, but this would not be suitable for the HL for COS range because wholesales only offer mass produced products that are not individual and work best for smaller accessory items like jewellery and sunglasses. They are very useful when a company needs product on the shop floor quickly to fill a space but are mostly used by smaller or independent clothing retailers not large corporations like the H&M group or high quality one off designer-high-street collaborations such as HL for COS.
The three most used methods of transporting garments from a supplier to a storage base is Air freight, Boat freight and Truck freight. With Boat being the most effective when shipping from the far and middle east and Air, for last minute solutions to fix scheduling problems and Road for cost effective shipping around Europe. As two of my suppliers are based in Europe those garments will be transported to the UK by Truck freight. With the option to use either a normal or fast truck with two alternating drivers offering flexibility and a fairly inexpensive way to ship the HL for COS products.