Trans-Changi, Inc. Case 5.2, page 164 VEGA

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Reynaldo J. Vega MBA-5150 Professor J. Trice 10/15/2023 Trans-Changi, Inc. Case 5.2, page 164 Q1. The benefits of developing a business relationship with Trans-Changi for sourcing, manufacturing, and distribution of fashion apparel could include: 1) Cost Savings: Trans-Changi may offer competitive pricing for their services, resulting in cost savings for the merchandiser. 2) Specialization and Expertise: Trans-Changi may have extensive experience and knowledge in the fashion apparel industry, allowing them to provide expert guidance and support throughout the supply chain. 3) Supply Chain Efficiency: Partnering with Trans-Changi could potentially streamline the sourcing, manufacturing, and distribution processes, leading to improved efficiency and faster time-to-market for the fashion apparel products. 4) Global Presence: If Trans-Changi has a global presence or access to international markets, the merchandiser can benefit from expanded market reach and increased sales opportunities. However, there may also be several drawbacks to consider: 1) Dependence on a Single Supplier: Relying heavily on Trans-Changi for sourcing, manufacturing, and distribution could create a risk of supplier dependency, leading to potential disruptions if something goes wrong with their operations.
2) Quality Control: Ensuring consistent product quality may be challenging when dealing with a third-party supplier. The merchandiser must establish robust quality control processes to minimize the risk of product defects. 3) Communication and Coordination Challenges: Coordinating activities across different locations and time zones could present communication and coordination challenges that need to be addressed effectively to ensure a smooth and efficient supply chain process. 4) Ethical and Environmental Considerations: The merchandiser should thoroughly evaluate Trans-Changi's ethical and environmental practices to ensure alignment with their own sustainability goals and values. Q2. Considering a relationship with Trans-Changi fits into the steps of the MSSP sourcing methodology in the following ways: 1) Identify Sourcing Needs: The merchandiser would identify the need for sourcing, manufacturing, and distribution services for their fashion apparel products. 2) Evaluate Potential Suppliers: Trans-Changi would be evaluated as a potential supplier based on factors such as their capabilities, reputation, cost-effectiveness, and fit with the merchandiser's requirements. 3) Supplier Selection: If Trans-Changi fulfills the merchandiser's criteria, they may be selected as a preferred supplier for the sourcing and manufacturing processes. 4) Establish and Manage Relationships: Once selected, the merchandiser would establish and manage a relationship with Trans-Changi, including contracts, performance monitoring, and continuous improvement initiatives.
Q3. Some critical external factors that could impact the success or failure of the relationship with Trans-Changi include: 1) Economic and Market Conditions: Fluctuations in the global economy, changes in consumer preferences, or shifts in market demand can all significantly impact the success of the fashion apparel industry and, consequently, the relationship with Trans-Changi. 2) Geopolitical Risks: Political instability, changes in regulations or trade policies, and disruptions in the global supply chain due to geopolitical events can affect the supply and distribution of fashion apparel products sourced through Trans-Changi. 3) Natural Disasters and Climate Change: Natural disasters or extreme weather events can disrupt manufacturing and transportation activities, causing delays or disruptions in the supply chain. 4) Technological Advancements: Rapid technological advancements can impact the fashion industry, such as the adoption of new materials, automation in manufacturing, or advancements in e-commerce platforms. The relationship with Trans-Changi should consider these changes and adapt accordingly to remain competitive. 5) Ethical and Sustainability Factors: Increasing consumer demand for ethically sourced and sustainably produced fashion apparel requires the merchandiser to ensure that Trans- Changi follows responsible practices. Any failure in meeting these expectations could negatively impact the relationship. 6) Competitive Landscape: The presence of other suppliers with similar capabilities, lower cost options, or better market reach can pose a threat to the success of the relationship with Trans-Changi. The merchandiser should continuously assess and compare the offerings of different suppliers to maintain a competitive advantage. Taking these external factors into
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account and proactively addressing them can contribute to the long-term success of the relationship with Trans-Changi. The solution involves finding a way to solve a problem or address a need effectively and efficiently. It requires identifying the cause of the problem, brainstorming potential solutions, evaluating each option, and choosing the most viable one. The chosen solution should be simple, clear, and easy to implement, ultimately resolving the problem and meeting the desired outcome.