Supply Chain Diversification to Meet Market Demand
A global sportswear brand faced challenges with delayed shipments and longer lead times due to manufacturing in Asia. In order to capitalize on seasonal trends and meet market demand, the brand sought a local-for-local solution in the Americas. Melengo stepped in to develop and execute a comprehensive nearshoring strategy for manufacturing their core inline graphic apparel styles in the Americas.
The Problem
The global sportswear brand had been manufacturing its core graphic apparel collection for the North American market in Asia, but encountered difficulties matching the desired level of quality and attention to detail in the region. As a result, the brand experienced sales and market share decline due to shipment delays of seasonal products. To reverse this trend, the brand decided to explore local manufacturing options in the Americas and partnered with Melengo to build the necessary manufacturing infrastructure.
The Approach
Pilot programs for proof of concept
To minimize business risk, the brand opted for a pilot program in the Americas region. The goal was to ensure that the product from Asia and the Americas would be indistinguishable when displayed together at retail. Melengo's first step was to develop identical textiles in the Americas, considering factors such as weight, quality, costing, and color. Once the textiles and trims were finalized, garment development commenced. Melengo partnered with a garment factory in Guatemala that possessed in-house screen printing and embroidery capabilities, enabling them to leverage economies of scale. The garment construction and decoration quality achieved in Guatemala mirrored that of the goods produced in Asia.
Value Delivered
Increased market share and new supply chain
Speed to market enhances market share By producing hoodies, tees, and joggers in Guatemala, the production turnaround time was reduced to three months compared to nine months in Asia. Melengo successfully delivered an apparel collection from the Americas that was identical to the Asian production, activating it within four months from the textile mill to the retail floor. This proximity to the market empowered the brand to test new ideas and explore trending colors for a more agile go-to-market approach. The expansion of the brand's manufacturing infrastructure in the Americas positioned them to compete in a fast-paced and dynamic environment driven by social media.
Create world-class products with Melengo
Brands face significant challenges when it comes to manufacturing their products. Lengthy lead times, high costs, and coordination issues with suppliers can hinder their progress. That's where Melengo comes in.
With our integrated network of manufacturers in the Americas, we offer a one-stop shop for product manufacturing. Leveraging the nearshoring trend and our industry expertise, we help brands launch new products faster, more sustainably, and affordably. Our streamlined platform ensures real-time communication and simplifies manufacturing workflows, from design and development to sourcing raw materials, components, and manufacturing.
Partner with Melengo and overcome manufacturing challenges with ease. Say goodbye to lengthy lead times, high costs, and coordination headaches. Experience a seamless manufacturing journey that empowers your brand to thrive. Reach out to us today.
