How Intrepid Sourcing Created a Wrinkle-Free OEM Experience for Impressed Bags.

Impressed Bags faced several challenges when it selected China as its sourcing destination. It had no definite sourcing strategy for its cross-border transactions – it lacked the time and resources to travel all the way to China to conduct multiple supplier verifications and assessment of their production capacity. The set up of the production line across border had to be quick and seamless, otherwise, its limited product supply would soon run out.

Quick Jump

Introduction

Intrepid Sourcing manufacturing case study

Since its establishment in 2015, Impressed Bags slowly carved its niche in the handbags industry, gaining clients in New York and other neighboring cities in the US. In 2016, however, Impressed Bags hit an unexpected stumbling block – the consumer demand for its Preston bags greatly exceeded the company’s on-hand product supply.

Their innovative bag was featured in number of fashion magazines and blogs, which increased its popularity tremendously. A detachable garment back allows to role up suits and other garments so that they get to their destination wrinkle-free. The magnetic clip system is patented and unique in the bag market.

Since its establishment in 2015, Impressed Bags slowly carved its niche in the handbags industry, gaining clients in New York and other neighboring cities in the US. In 2016, however, Impressed Bags hit an unexpected stumbling block – the consumer demand for its Preston bags greatly exceeded the company’s on-hand product supply.

Their innovative bag was featured in number of fashion magazines and blogs, which increased its popularity tremendously. A detachable garment back allows to role up suits and other garments so that they get to their destination wrinkle-free. The magnetic clip system is patented and unique in the bag market.

The Challenge

In the fashion industry, time is of the essence. Impressed Bags understood that the growing market demand for its bag products required streamlining of the production line in the US which entails great costs or in the alternative, establishing an offshore production line that comes with potential risks. In search of a cost-effective solution to reduce the high manufacturing costs of Preston bags, the brand decided to move the existing production line to China, one of the world’s largest luggage and bag manufacturing industries valued at $62 billion, due to its lower production costs, highly skilled workforce, consistent supply of raw materials and higher production yield.

The Story

As a fashion startup company, Impressed Bags faced several challenges when it selected China as its sourcing destination. It had no definite sourcing strategy for its cross-border transactions – it lacked the time and resources to travel all the way to China to conduct multiple supplier verifications and assessment of their production capacity. The set up of the production line across border had to be quick and seamless, otherwise, its limited product supply would soon run out.

The Solution

The First Step

We conducted a supplier assessment– their licenses, credentials, facilities, labor force and production capacity – to assess which suppliers can deliver orders in the desired quantity and meet timeframes, without quality loss despite its offshore production. Our team directly carried out on-site quality assessments to ensure every product meets strict quality standards on stitching, tensile strength, functionality and material quality.

The Second Step

We created a product costing, helping Impressed Bags reduce its acquisition costs for all bag parts such as leather and nylon, while retaining material quality. Intrepid Sourcing also helped in providing data-driven demand forecasting to organize the inventory for Preston bags (its sole product) and scheduled replenishment, avoiding excess or depleted stocks. Previous sales data and fashion trend reports led to accurate demand prediction, enabling the brand to adjust the production dates and meet the expected market demand.

The Last Step

We provided intermediary services for Impressed Bags, directly managing its financial transactions with different suppliers and completing invoice collection and bank transfers. Our team helped the fashion brand avoid costly transaction fees which it would have incurred had it dealt with its suppliers separately.

The Outcome

Impressed Bags moved its production line abroad smoothly. The seamless transition from the US to its offshore production in China lowered the production costs (resulting in savings) while retaining the distinct quality and durability Preston bags are known for. The existing product design was further optimized for mass production.

Also An Innovative Fashion Company Like Impressed Bags needs help setting up a custom garments production line abroad. With a more efficient production line, Impressed Bags was able to replenish its limited on-hand supply with high-quality stocks and is now fully equipped to meet the growing market demand for its bag products. Full scalability at better prices is assured for the future.

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