Problem
Case
Trans-Changi, Inc. With corporate headquarters located in Singapore, Trans-Changi, Inc. is one of the world's largest sourcing and logistics companies. Although the company owns no fabric mills, manufacturing operations, or logistics-related assets, its primary competitive strength is its network of over 10,000 suppliers in approximately 40 countries that make it possible for the company to be core competent in producing clothing more quickly and inexpensively than otherwise available. Trans-Changi is regarded as one of the major players worldwide in the sourcing, manufacturing, and distribution of clothing and other garments. The company currently has three primary types of product markets in which it competes: (i) proprietary brands, which are sold only through one exclusive retailer; (ii) private label merchandise, consisting of in-house brands belonging to individual retailers; and (3) licensed brands that deals with products featuring images of licensed entertainment characters. Although the global marketplace has experienced significant economic volatility in recent years, Trans-Changi has been able to maintain its reputation as one of the most impactful, global supply chain players. According to Tony Tang, CEO of Trans-Changi, companies in the supply chain business are looking to expand manufacturing and sourcing operations in more cost-effective areas, and to meaningfully consider new business opportunities in new market areas. Thus, it is no surprise that firms worldwide look to organizations such as Trans-Changi to manage a number of key supply chain processes, including sourcing, manufacturing, and distribution. A few of the top global apparel store brands that rely upon the services of Trans-Changi include Unlimited Brands, Zaragoza, Femme Fatale, H&B, and Bobby Hilfiger. Although headquartered in Singapore, major markets for Trans-Changi services are in North America, Western Europe, and the Middle East. Most sourcing and manufacturing is centered on China and India, but significant diversification is currently a priority to other countries such as Vietnam, Thailand, Philippines, Indonesia, Turkey, and South Africa. As Trans-Changi prepares for the future as a leader in integrated supply chain management, its corporate philosophy focuses on "helping our customers to understand their core competencies, and outsource the rest to Trans-Changi."
Task
A. Assuming that you are SVP supply chain at a leading merchandiser of fashion apparel, what do you feel would be the benefits and drawbacks of developing a business relationship with Trans-Changi for the sourcing, manufacturing, and distribution of your products?
B. Where does consideration of a relationship with Trans-Changi fit into the steps of the MSSP sourcing methodology that was discussed in this chapter?
C. Since a logical objective of a relationship with Trans-Changi should be to create benefits to both parties over time, what do you think are some of the very critical "external" factors that could impact the success or failure of this relationship?