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Week 2 A - JGSM Consulting ABC Retail Dear It was a...

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JGSM Consulting January 23, 2003 ABC Retail Dear : It was a pleasure speaking with you on Thursday regarding the prospects of working with ABC Retail to develop a merchandise sourcing strategy. This proposal addresses our understanding of the issues, our proposed approach and an overview of how the project would be structured. Background In an effort to continue to deliver compelling value to their customers, ABC Retail believes that there are significant opportunities to increase the proportion of merchandise that is imported. ABC currently imports $x-y million from Europe but anticipates that figure growing closer to $zz million. ABC currently utilizes wwww, a European based sourcing agent, to facilitate the import process. This import process has not provided ABC with visibility into closeouts, a critical component of the ABC strategy. The initial hypothesis is that the most significant opportunities in the short term are to increase the proportion of direct imports from Europe. ABC merchants see the European market, particularly the small cottage industries, as a means to add an aspirational layer of merchandise to their assortment. ABC believes that one of its major competitors has significant buying presence in Europe and would like to better understand that model as well as the other alternatives available for sourcing overseas merchandise. Objectives & Scope The objective of this project is to determine the appropriate international representation for ABC by evaluating viable alternatives that consider strategic, financial and operational implications.
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Several key questions will be addressed over the course of the project: Which region of the world offers the most product opportunities?
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