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This 3 page Class Notes was uploaded by Jared Notetaker on Saturday February 6, 2016. The Class Notes belongs to BUS 300 at La Salle University taught by Dr. Joshua Buch in Winter 2016. Since its upload, it has received 8 views. For similar materials see International Business in Business at La Salle University.
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Date Created: 02/06/16
Jared Mattera BSA 405 2/3/16 Timbuk2 Write up One successful company that has really perfected their competitive dimension in regards to their product is Timbuk2. Timbuk2 is a custom bag tailored towards the individuals needs and is considered top of the line in quality, style. And longevity. One reason that makes their company so successful, from a supply chain analysis standpoint is their individual customization. Since their customer are going online to their website, customizing their bag a certain way, and paying for it before it is even made allows Timbuk2 to have extremely high inventory turnover. They do have some preset models that are in their storage facility in case a person wants a cheaper model already made but those are the only ones that Timbuk2 sits on. Besides the preset models, once a customer orders a bag the description is sent to the factory with all the specifications to make that bag and it is shipped right after completion having zero inventory storage time. The two key competitive dimensions that Timbuk2 has with their custom messenger bags are individuality and quality. Since the customer can customize his specific bag to exactly what he or she wants it meets the customer’s individualism desire. Plus the quality is one of the best on the market lasting for years with no problems at all gives the bag credibility and liability for the customer. No, the competitive priorities are not different from the bags sourced in China since it is the same company making the same bags exactly the same way as it was before. All that is different is the location of manufacturing which only to keep bag prices reasonable. Only for the San Fran plant, they offer another competitive dimension which is speed due to their overnight shipping upon completion. The San Francisco assembly line and China assembly line differ in many ways. China could definitely make more bags per day than San Fran. due to having way less strict labor laws allowing workers to stay longer. The skill of the workers for both plants would just be to read and assemble the parts however Chinese plants having been doing this type of work for years so their knowledge may be greater due to experience. China’s level of automation is way higher as well because of the lax labor laws I stated earlier. Certain health protocols don’t have to be followed so money spent on the materials needed to follows those protocols are non-existent. Lastly, the amount of raw materials may need to be shipped to China but their labor wages make up for what it would be to pay San Fran workers. Lastly, besides manufacturing, when sourcing to China Timbuk2 has to consider a few more costs. One such cost is shipping of materials and shipping of finished goods. Their overnight delivery guarantee from the San Fran plant may be a bit difficult to uphold when all the bags are being sourced from china. Also, some of the raw materials could have been shipped to San Fran due to its closeness and cheaper cost. Now it is probably much further and more expensive to ship materials to China. Lastly, they will have to deal with U.S. and Chinese customs in regards to adhering to the Chinese customs of non- offensive actions to keep their plant as well as imports and exports being regulated by officials for each country’s safety.
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