This week has been a busy one with respect to getting our final pitch ready, building our venture package, and working through our supply chain. We decided to make two different supply chain charts with different strategies.
In order to keep our manufacturing costs manageable in our first year while we create demand, we felt that it would be best to manufacture locally here in Calgary. This will enable us to work and fulfill orders on a JIT basis and cut holding costs. Additionally, we discovered that if we were to manufacture across seas, usually they require large orders of which in our initial faze we would like to keep overhead costs as low as possible.
Upon discussion with our board of advisers, we chose to move our manufacturing overseas in our second year. Once our demand creation plan has run its course in the first year, we will expect greater demand for our product and for this reason, it wouldn't make any sense to continue manufacturing locally when we can save substantially on the cost for each shirt by producing overseas.
I actually rather enjoyed working on the supply chain for this particular venture. I've taken a class in supply chain prior to the class; however, I found that working out the logistics and whatnot for your own business is much more interesting than being taught from a text book. After we looked at our financials again through a supply chain lens, it was rather interesting to see the impact that this process had on our business and the cost structure.
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