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Unformatted text preview: awney itself. Beauti-Phil’s customers have been
willing to pay more for their products than they would for foreign competitors presumably
because they feel like they are supporting their friends by purchasing from the Franklins. BeautiPhil has also been able to thrive due to its high quality products and short lead times for orders,
which give the firm additional competitive advantages over its foreign counterparts.
Beauti-Phil’s production process is like that of a mass-customized job shop in the spirit of
Benetton’s postponement strategy. In advance of orders, they produce neutral (colorless) t-shirts
and golf shirts in sizes proportional to the size breakdown of an average order1. Once an order is
received, the shirts are dyed the appropriate color, and the logo and text are silkscreened or
1 Andel, Tom. 2003. Custom-made supply chains. Supply Chain Technology News. December / January.
http://www.newview.com/newsevents/articles/2003/2003_01.pdf Drake et al. 2004 Georgia Institute of Technology 2 The Groundhog’s New Clothes embroidered as desired. This postponement strategy allows Beauti-Phil to deliver its orders
within short lead times without requiring a massive amount of work-in-process inventory for
each garment color.
Beauti-Phil uses a quantity discount pricing policy for its products as shown in Table 1. In order
to encourage its customers to order larger quantities of goods, they offer a lower per unit price
for larger orders.
Table 1: Beauti-Phil Apparel Pricing Policy
Less than 24 $14.00 each $22.00 each 24—50 $13.50 each $21.00 each 50—100 $12.50 each $20.00 each 100—1,000 $11.00 each $18.00 each More than 1,000 $10.00 each $16.00 each The Franklins openly acknowledge the importance of their workforce in Beauti-Phil’s success in
the past. They have actively sought suggestions and innovative ideas from the production
workers about ways to improve the production process and their overall job satisfaction. Many of
these suggestions have been implemented to everyone’s mutual benefit. Steve and Eileen
consider many of the workers to be part of their extended family. They have shared many
lunches and dinners with their employees, getting to know them through honest, authentic
conversations about everything from kids to local politi...
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- Fall '08
- Systems Engineering