© 2019 Smart Chain Enterprises Limited

Our Supply Chain Risk Management

Smart Chain, a one-stop apparel supply chain solution provider, strives to mitigate risks in the whole supply chain process, which involves price, quality, quantity, delivery, and compliance. We aim to provide solutions to improve supply chain sustainability, transparency, and visibility.

Sustainability

 

Business Challenge:

  • Bangladesh factory building collapsed in 2013 increasing compliance risks in production countries.

  • Fluctuating raw material prices and higher wages increased price risks and labor cost

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

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

Transparency

 

Business Challenge:

  • Hidden costs in global sourcing increase supply and process risks

  • Inadequate information sharing causes delay in communication and agency conflicts

Case Study: Price Transparency

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

Visibility

 

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.

Case Study : ComLink, Supply Chain Process Traceability

Solution:

  • Smart Chain has developed a suite of web, mobile and RFID applications to capture order status at finger-tips.

Key Benefits:

  • Easy to track factory information and the production progress

  • 24-Hour information sharing for quick response to customers

  • Respond to market dynamics more efficiently and effectively

  • Reduced time in communication process