ABSTRACT

This case is set in 2012 in Thailand. SetText Global Co. Ltd.; China, a representative office of Torrent World Group, mainly used to deal in sourcing of textile products including price quotations, inspections, quality control and shipment. China is a major source of textile procurement for Torrent. However, with rising costs of procurement and delayed supply by Chinese vendors, Mr.Vasant is worried about his supply commitments. He has to take a decision whether he should continue sourcing from China or to shift to other countries.

The\case concerns (a) Sourcing decisions and (b) International Business Environment. It raises issues of outsourcing, competitive advantages of nation and contingency planning. The case is most suitable when placed in the sourcing module of the Supply Chain Management course. It could also be used in the introductory module of the International Business course as the case highlights the concerns of outsourcing in an international arena. The major teaching objectives of the case are:

1. To understand why companies outsource.
2. To examine the quantitative and qualitative issues involved in the sourcing decision.
3. To consider how, especially in a cut throat market environment, the sourcing process should be managed.

Keywords: Marketing, Sourcing, Textile, supply chain management