Supply Chain Consulting
Our Mission : In the mid-1990s, a $50 million dollar New York based importer of unfinished woven cotton textiles approached our Jakarta-Indonesia office for assistance in developing new sources of supply for high volume imports. Sourcing high volumes out of Indonesia and Southeast Asian suppliers since the 1970s, this client had established a significant share of the US import market for greige fabrics used in the American apparel and home furnishing industries. However, by the mid-1990s the revolution in information technology, communications and transportation had turned this once highly profitable business into a fiercely competitive commodity trade. Most of the major Asian suppliers were limiting their export of raw materials, in favor of exporting higher value added dyed and finished textiles. The company sought our assistance in expanding their sourcing network by tapping into a little known middle market of medium sized Indonesian and Southeast Asian mill suppliers who had, for over a decade, been exporting to European buyers, but had yet to penetrate the US market. Our client’s strategy was to outmaneuver its New York based competitors by using TSI Global Consulting’s on-the-ground local expertise to tap into this new, lower cost, middle market network of high volume raw material suppliers.
Our Research and Implementation Efforts: Over a period of several years TSI Global Consulting negotiated and developed high volume exports from fifteen medium sized textile mills located in Indonesia, India and the United Arab Emirates. Our on-the-ground presence in the region during the mid to late 1990s served as a unique source of competitive advantage for our client. Based half a world away in New York, our client was able to focus their efforts on developing domestic sales while we spent countless hours investing the necessary time and effort in upfront face-to-face meetings with the management of Asian mill suppliers in order to develop their supply chain.
Results: Between 1995 and 2000, this new sourcing/distribution chain designed and paved by TSI Global Consulting, fueled new exports to our client in excess of four million dollars per year. Cost and freight (CNF) export prices from our middle market suppliers averaged 15-20% below prices offered by the large, well established Jakarta based mills whom our client and their competitors had been sourcing from since the 1970s. This new sourcing network gave our client a significant cost advantage relative to its competitors who had no access to TSI Global’s supply chain that had been built up over a period of years through investment in highly localized on-the-ground relationship building processes. Throughout the late 1990s, we replicated this model for several other American clients including a large South Carolina based home furnishings manufacturer.