Caso Timbuk2

Timbuk2 is a San Francisco-based messenger bags manufacture. It was established in San Francisco in 1989 by former bike messenger Rob Honeycut.

Timbuk2 is selling products through 4 main channels, which are:

1.- Domestic Retail Channels: Traditional outlets with the highest volume and wholesale prices to stores inside USA . The delivery by this mean takes 2 or 3 weeks.

2.- International Retail Channels: Outlets outside the country and the same shipping time as Domestic Channel.

3.- E-commerce: Units are sold directly to customers, at retail prices. Customers receive their bags within 2 or 3 days.

4.- Corporate Channels: This channel is focused on corporations with specialized logos and 6 weeks are needed for their order.

Added to these channels, Timbuk2 offers special deals, with low priority and low margin.

At 2002, the most profitable channel by far is E-commerce with US$1.599.618 in sales, representing 39% of total sales.

Some factors to be considered in order to decide options to offer customers through mass customization are:

Workers Training

The San Francisco assembly line produces customized bags. Although, the skill required to make a messenger bag is not at all that intensive. The process of putting together a different bag each time to a different set of specifications means that the workers go through a certain variety in their work. Therefore, these workers have more technical skills. In addition, their work would very likely incorporate more than one specific task, as the group is not at all that large.

On the other hand, the Chinese assembly line, might be most likely involve more division of labor. We can expect workers to be grouped together and assigned specific tasks for each group. The nature of the work may be very mechanical and repetitive, thus technical skill is hardly necessary for the workers. It could take time that each of these workers performs specific task and this could affect the customization.

Personalized Products:

Customers are allowed to configure and order individual bags to their own specification. This fact should be considered, since incorporate a pallet of colors involves additional stock for example. If it is offered a bag with or without a handle will require re-configure machines and processes. On the other side, give an option on panel sizes would be even more complex due to the need of new equipment able to cut pieces at different sizes with little setup time.

The costs and benefits of moving production to China are explained as follow:

Cost:

1.- Bags from china to San Francisco take 4 to 6 week in arrive to destination by ship

2. On the other hand, if bags are shipping by plain, they would take 2 or 3 days, but the cost per bag will to around $15 per bag.

3.- Assuming bags are delivery from China by ocean carry, it would involve more inventory in inventory.

Benefits:

1.- Low cost of hand labor. Workers in textiles earn around $0,60-$1.30 per hour in China, while American employees earn $11 to $20 per hour. Additionally Chinese workers have fewer benefits and they work an average of 2,930 hours per year.

2. If Timbuk2 chose the factory in China, it could increase its capacity of production.

San Francisco factory:

The factory could be used as a warehouse. It means, the suppliers provide only raw materials to the factory in China, which makes bags out of the raw materials. Depending on the function of the factory, it may also serve as a warehouse while waiting for the entire order to be completed (we could assume that the warehouse and factory are situated in one location). After the production runs and the orders for bags have been fulfilled, the

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