On the Timbuk$2$ website, the company argues it has the same hardworking group of bag fanatics designing and making great bags, and supporting the local community and the increasingly competitive global market. The company reports that demand is still strong for the custom messenger bags made in San Francisco and that the new laptop bags sourced from China are receiving rave reviews. The additional business is allowing it to hire more people in all departments at the San Francisco headquarters, creating even more jobs locally. The company has grown significantly over the years and it now runs stores in a few major cities including Los Angeles, Chicago, New York, Toronto, Melbourne, Tokyo, and Singapore.

Questions

Consider the two categories of products that Timbuk $2$ makes and sells. For the custom messenger bag, what are the key competitive dimensions that are driving sales? Is its competitive priorities different for the new laptop bags sourced in China?

Compare the assembly line in China to that in San Francisco along the following dimensions: $(1)$ volume or rate of production, $(2)$ required skill of the workers, $(3)$ level of automation, and $(4)$ amount of raw materials and finished goods inventory.

Draw two diagrams, one depicting the supply chain for those products sourced in China and the other depicting the bags produced in San Francisco. Show all the major steps, including raw material, manufacturing, finished goods, distribution inventory, and transportation. Other than manufacturing cost, what other costs should Timbuk $2$ consider when making the sourcing decision?

$-$Special thanks to Kyle Cattani of Indiana Unwersity for this case.