Free Essay About Supply Chain Management: Canada Goose

Canada Goose is a Canadian clothing company that majors in the production of cold weather outerwear. Some of the company's products include hats, parkas, gloves, and jackets amongst other cold weather attires. Sam Tick founded the company in 1957 and since then the company has grown tremendously to employ more than 1000 employees and annual revenue of more than $100 million. The company's growth can be attributed to efficient supply chain management and the production of high-quality products that suit the dynamic needs of its target market.
Canada Goose is a strategic supplier that contributes directly to end-consumer satisfaction. Since the company produces products for cold climates, it has placed more emphasis on the functionality of its products with fashion coming as a secondary priority. The consumer satisfaction can be attributed from the high increment in sales growth as witnessed in 2009 when the sales volume grew by 30%. The company's products are available in more than 40 countries. In spite of the products being branded boldly as "made in Canada", efficient and strategic supply chain management has ensured that the company contributes directly to end-consumer satisfaction.
Canada Goose has maintained a close relationship with retailer and distributors in different part markets. In North America, the company sold its products directly to retailers who had to go through a rigorous approval process prior to getting an account with the company. The company's boss David Reiss and the sales team have maintained policies to ensure suppliers do not conflict (Silvertown, 2011). For instance, in 2008 two Canadian retail chains were fighting each other for the supply of Canada Goose's products. In 2010, Canada Goose had managed to feature products in both companies with each having a distinct line of clothing (Silvertown, 2011). Such strategies have ensured that the supply chain remains aggressive suppliers who can reach customers in an efficient and sustainable manner.
Canada Goose has established effective ways of handling its supply issues. The company manufactures in Canada, but it sources its raw materials globally. However in order to cut on costs, the company has subcontracted manufacturing facilities in Canada (Jean-Louis Schaan, 2013). There are many textile companies in Canada, and therefore Canada Goose can afford to team up with cheap but experienced manufacturers. In addition, the company invests heavily in manufacturing capabilities. It has invested in high quality down materials to improve insulation. The innovations have led to proprietary designs such as HyBridge. Canada Goose has shunned the push towards automated production of clothing choosing instead to stick to hand sewn jackets that have superior quality (Jean-Louis Schaan, 2013). However, the company has adopted the use of some welding and machining in order to improve sewing quality. In terms of products, the company has expanded its sizes and fits to accommodate the demands of the different markets. For instance, the "Fusion Fit" size meets the demands of the Asian market for slimmer and shorter styles (Jean-Louis Schaan, 2013).
The company has an effective procurement process. It teams up with the local manufacturers in order to have the deliveries of the raw materials made to the manufacturers. As such, there is synergy, which eases the procurement process and reduces the cost of production.
Canada Goose would be more effective by teaming up with outside suppliers and not sourcing in-house. The cost of outsourcing for suppliers is lower as compared to in-house sourcing since there is wider scope from which the independent supplier can source for raw materials. Moreover, the specialization by independent suppliers eases the production process leaving the company with more time to perfect on issues that add value to the products to enhance the quality. Strategically, Canada Goose would have more time to make critical decisions on human resource, financing, capital investment, partnerships among other issues that give the company an edge in the competitive clothing industry.
Canada Goose, a clothing company, started in 1957 has excelled courtesy of strategic outsourcing of materials, efficient supply chain management and the production of high-quality goods. The company has maintained production within Canada through local textile companies. In addition, it has used separated some retailers to ensure that each supplies a distinct product in order to avoid conflicts. The company has had an effective procurement process by teaming up with local manufacturers, and this has allowed it more time and energy to strategize in handling the competition in the clothing industry.

References

Jean Louis Schaan, D. W. (2013). The future of Canadian manufacturing: learning from leading firms. IVEY.
Silvertown, J. (2011). Canada Goose: the South Korean Opportunity. Ontario: Richard Ivey School of Business.