• Case Study – Long-term Partnership,
    Lower Supply Chain Risks

    Case Study – Long-term Partnership, Lower Supply Chain Risks

    Business Challenge:

    • Bangladesh building collapse in 2013 and fire in garment factory increase compliance risks in production countries.
    • Prices of raw materials (e.g., cotton) fluctuate and higher wages increase price risks and labor cost in Asia

    Solution:

    • Expand production bases and supplier network to balance advantages and disadvantages in different countries of production and mitigate the risks of significant increase in labor cost.
    • Establish long term partnership with 3rd party manufacturers and closely monitor their performance, such as factory compliance, material consumption, etc.

    Key Benefits:

    • Reliable supplier and production network to mitigate environmental risks due to political instability, policy changes, and natural disaster.
    • Highly scalable and reliable to handle any volume
    • Lower supply risks of price, labor costs, compliance
    • Lower demand risks, flexible capability to adapt to consumer preference change
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  • Case Study – Price Transparency

    Case Study – Price Transparency

    Business Challenge:

    • Hidden costs in global sourcing increase supply and process risks
    • Inadequate information sharing causes delay in communication and agency conflicts

    Solution:

    • Offer a transparent pricing strategy with the “first sale” program, inform the “actual price” to customers, do not request rebates from contract manufacturers
    • Pricing is transparent to Hanbo employees and contract manufacturers

    Key Benefits:

    • Reduce import custom duties
    • Clearly understand the actual product cost (associated with manufacturing) and the actual service cost (provided by Hanbo)
    • Customers can evaluate the performance of Hanbo and its third-party manufacturers more accurately.
    • Lower cost of sales and higher operating income for Hanbo’s customers
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  • Case Study – Hanbo Mobile App,
    Supply Chain Process Traceability

    Case Study – Hanbo Mobile App, Supply Chain Process Traceability

    Business Challenge:

    • Customers rely on their vendors to deliver products on time but do not have full visibility beyond their contact point
    • Lack of Updated information during manufacturing process increases supply risks of delay delivery.

    Solution:

    • Hanbo developed a mobile application for customers to track their order status, and production progress at finger-tips.

    Key Benefits:

    • Easy to track factory information and the production progress
    • 24-Hour information sharing for quick response to customers
    • Faster respond to market dynamics more efficiently and effectively
    • Reduced time in communication process
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