Increase Revenue with Hybrid Manufacturing: Combine U.S. AND Overseas Factories for Better Results
Amy Richardson, founder and CEO of children’s clothing brand June & January, began sewing clothes on a home sewing machine in 2010. When her business took off, Amy worked with Blacksmith International – a U.S. based design, sourcing and manufacturing company to move her production to a high-volume factory overseas.
She soon realized that manufacturing overseas, while meeting her needs for higher volumes, increased lead times and reduced her ability to react quickly to market demands. Popular styles that sold out could not be replenished quickly. She knew she was leaving critical revenue on the table and needed a more flexible supply chain strategy.
The answer to her problem? A hybrid domestic/overseas production strategy. By utilizing Blacksmith’s overseas presence for high volume orders and its’ U.S. based on-demand production facility, Amy was able to reduce risk while increasing revenue.
This on-demand factory offered Amy several things:
- A skilled workforce able to meet Amy’s high quality standard
- Cost-effective small-batch orders
- The ability to restock core styles at record speed
How does it work?
By storing fabric needed for popular styles at Blacksmith’s On-Demand Factory, Amy is able to quickly replenish inventory in DAYS rather than months.
When inventory on a style gets low, Amy alerts the Blacksmith U.S. factory, and her supply is topped-off in about 10 days or less. Order size is based on demand, allowing June and January to purchase only quantities needed.
This hybrid strategy ensures that Amy does not miss out on potential revenue while waiting for larger production runs to arrive from overseas.
By using both overseas production and Blacksmith’s U.S. On-Demand Factory, Amy’s hybrid manufacturing model has provided her with maximum supply chain flexibility – keeping styles in stock and increasing revenue.
If your brand needs a more flexible supply chain strategy, then contact Blacksmith International today.