Asci 644 - Trans-Global, Inc. Case Study

Trans-Global, Inc. Case Study

Lakshitha De Silva

Embry Riddle Aeronautical University

ASCI 644

Trans-Global, Inc. Case Study

Trans Global, Inc. is a global sourcing and a logistics company which deals with fabric and clothing. They have over 10,000 suppliers from 40 different countries which allows them to produce cloths faster and inexpensive than others even if they do not have fabric mills and clothing manufacturing operations. They distribute these fabrics and cloths through secondary retailers who owns proprietary brands, private label merchandises and licensed brands which makes them a powerhouse in global supply chain and logistics. They have top global apparel operators that look for their services in sourcing, manufacturing and distribution. Trans Global mainly have their services in North America, Western Europe and Middle East while their manufacturing and sourcing operations are based from India and China. The company is currently exploring opportunities in Vietnam, Thailand, Philippines, Indonesia and South Africa to expand their operations (Coyle, Langley, Novack &Gibson, 2017, p. 164).

Benefits and Drawbacks of Using Trans Global

Trans Global, Inc. has a far-reaching network of suppliers in many countries. Therefore, the main advantage of acquiring their services would be their global exposure to a network of multiple suppliers where I would be able to find the most cost effective material. My fashion apparel company might not have the resources and skills to connect with large number of suppliers. Thus, Trans Global provides the perfect opportunity in acquiring the material at relatively low costs. Apart from that, through their efficient supply chain and manufacturing operations based on China and India, my company can reduce labor costs and manufacturing costs relatively and reduce total operations cost of the company. Finally, the distribution of the finished products to our own facilities can also have benefits if Trans Global is able to utilize their transportation methods to deliver the products at the same frequency and time frame that we currently operate.

This is where the drawbacks of partnering with a Global sourcing company can affect our own company. Since they are manufacturing the products at China and India, we must think about the transportation methods and lead times as well. Another potential drawback will be sourcing. Trans Global have over 10,000 suppliers but that is not a guarantee for quality material. The current material we manufacture the cloths might be better than what Trans Global acquire through their suppliers. Another disadvantage could be that Trans Global may have hidden costs since they are manufacturing out of China and India, especially India does not have strong regulations related to global companies. Finally, another disadvantage for my company would be the less exposure to foreign culture, regulations and traditions, etc. If we are planning to expand operations globally on our own, this could become a disadvantage. Apart from these there is always risks associated with political environment, labor issues, difficulties in supervision and monitoring the product, etc.

Managing Strategic Sourcing Process (MSSP)

According to the MSSP concept, the consideration of the relationship with Trans Global will fit in the third and fourth step. In the third step, Evaluating Supply Sources, there are three main tasks for the sourcing professional: Conduct Market Analysis, Evaluate Supplier Alternatives and Pre-Qualify Potential Suppliers (Coyle et al., 2017, p. 147). In this step, one of the crucial components is conducting the market research. This allows the company to identify supplier sources, types of markets, number of markets, most cost-effective buying method, etc. After that the company can identify Trans Global as an alternative supplier and pre-qualify them as a potential supplier who can accommodate our company’s business needs.

Once Trans Global is identified as a potential partner, the relationship could be further developed in the fourth step. This step mainly revolves around developing the screening process after the initial research on the supplier/source partner. There are two important steps in this stage as Request for Information(RFI) and Request for Proposal (RFP). RFI allows the company to establish whether the supplier has necessary capabilities to meet the requirements of our business. RFP include all the information regarding how Trans Global will acquire the specific products and services that are essential to our company (Coyle et al., 2017, p. 148).