Quality of the products (dimensions)
The quality of the Timbuk2 bags is high. Products are made in smaller batch sizes and streamlined product and information flows had been particularly critical. There is also a high level of customizations, offering customers with different choices. Timbuk2 also offered in their website the “build your own bag” where customers can create their own design with the available features the company has to offer.
Manufacturing in China did not offer advantages in terms of material prices, because all materials already came from the Far East. Quality will still be the same with San Francisco Pricing
The selling price of a bag made in San Francisco is $72.71. Prices vary upon the customizations made. An additional $5 for different coloured logo. $20 for a laptop inserts interior, $10 for a center divider etc.
*Prices are computed based on table 4.The selling price of a bag made in China is $63.16. It is because of lower labour rates.
*Prices are computed based on table 4
Speed of Delivery
For e-commerce, products will be shipped to customers within 2-3 days whereas Timbuk2 delivered to the traditional domestic and international channels in about two to three weeks, and customers in the corporate channel needed to wait four to six weeks for their orders.If bags were shipped via an ocean carrier, it requires at least a four- to six-week lead time. If bags were air-freighted, they would arrive within two or three days, but then the cost would rise to around $15 per bag. With either production option, bags would be shipped from San Francisco to customers.
Each employee was trained to perform all of the tasks to produce a bag. All of them are women, mostly Asian, with high level of dexterity, speed and accuracy.
Labour in China is slightly more productive than in San Francisco. Utilization Rate of the factory
All orders were produced on the...