Caselet-Comfy Footwear: Leading Indian Footwear Brand Planning to Go Global Comfy Footwear Limited is an Indian...

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Caselet-Comfy Footwear: Leading Indian Footwear Brand Planning to Go Global Comfy Footwear Limited is an Indian leading footwear manufacturer headquartered in Navi Mumbai. It has experienced significant growth in the local sales and has also made a beginning in global sales over the last decade. It has three factories in India strategically located and is also interested in setting up more factories outside India, especially in low labour cost regions such as South America, Southeast Asia or Africa to take care of global sales. The global market has currently its Indian brands, but the company has started looking at contract manufacturing for leading global brands. The key issue facing Comfy Footwear is the design of its global production and distribution network. The main raw materials such as leather sheets and leather chemicals/ consumables are available in India, mainly in the south and east. Lead times vary from 3 to 6 weeks. The company also imports high finish leathers from countries like Italy and Australia for its high- end products and for most of its exports. Lead times are 5 to 8 weeks. Local market is reasonably steady for the low and medium cost products. Export market is dicey but if the company can win orders for contract manufacturing based on assured quality, price and delivery, it can help in utilising the plant capacities better and add to the bottom line with proper planning. 1. Where should be plants located in future and what degree of flexibility should be built into each? What kind of flexibility should be built into the distribution system? Support with reasoning in each case. 2. How would you characterise the supply strategy of Comfy Footwear? Comment on suggested supply chain strategy supporting the operation strategy. 3. Where would you place the demand faced by Step Easy on the implied demand Uncertainty spectrum? Describe briefly. 4. How can Step Easy expand the scope of strategic fit across its supply chain? Caselet-Comfy Footwear: Leading Indian Footwear Brand Planning to Go Global Comfy Footwear Limited is an Indian leading footwear manufacturer headquartered in Navi Mumbai. It has experienced significant growth in the local sales and has also made a beginning in global sales over the last decade. It has three factories in India strategically located and is also interested in setting up more factories outside India, especially in low labour cost regions such as South America, Southeast Asia or Africa to take care of global sales. The global market has currently its Indian brands, but the company has started looking at contract manufacturing for leading global brands. The key issue facing Comfy Footwear is the design of its global production and distribution network. The main raw materials such as leather sheets and leather chemicals/ consumables are available in India, mainly in the south and east. Lead times vary from 3 to 6 weeks. The company also imports high finish leathers from countries like Italy and Australia for its high- end products and for most of its exports. Lead times are 5 to 8 weeks. Local market is reasonably steady for the low and medium cost products. Export market is dicey but if the company can win orders for contract manufacturing based on assured quality, price and delivery, it can help in utilising the plant capacities better and add to the bottom line with proper planning. 1. Where should be plants located in future and what degree of flexibility should be built into each? What kind of flexibility should be built into the distribution system? Support with reasoning in each case. 2. How would you characterise the supply strategy of Comfy Footwear? Comment on suggested supply chain strategy supporting the operation strategy. 3. Where would you place the demand faced by Step Easy on the implied demand Uncertainty spectrum? Describe briefly. 4. How can Step Easy expand the scope of strategic fit across its supply chain?