Subject category:
Economics, Politics and Business Environment
Published by:
Harvard Business Publishing
Version: 17 January 2023
Length: 23 pages
Data source: Published sources
Share a link:
https://casecent.re/p/189371
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
Velong is a supplier of kitchen equipment and backyard grills for major global brands and store brands of large western retailers. In light of the COVID-related disruptions to the global supply chains, and the evolving trade tensions between China and the Western countries, Velong's global customers were pressuring the company to move 30% of its manufacturing from China to other locations. Velong was considering a number of countries to shift its manufacturing - India, Vietnam, Turkey and Mexico. At present, none of these countries seem to be able to match the cost structure and manufacturing quality that the company is able to achieve in China. Velong's co-founders, Jacob Rothman and Iven Chen, need to decide soon how to formulate a strategy to deal with the challenge.
About
Abstract
Velong is a supplier of kitchen equipment and backyard grills for major global brands and store brands of large western retailers. In light of the COVID-related disruptions to the global supply chains, and the evolving trade tensions between China and the Western countries, Velong's global customers were pressuring the company to move 30% of its manufacturing from China to other locations. Velong was considering a number of countries to shift its manufacturing - India, Vietnam, Turkey and Mexico. At present, none of these countries seem to be able to match the cost structure and manufacturing quality that the company is able to achieve in China. Velong's co-founders, Jacob Rothman and Iven Chen, need to decide soon how to formulate a strategy to deal with the challenge.
Settings
Industry:
Size:
Mid-size
Other setting(s):
2023