Royal Beginnings

Royal Beginnings

Group 1
Lalitya Pavan Sirapu
Fareed Ahmad Sheik
Krishna Chaitanya P
Pratyaksh Salvi
Tapsi Mishra

Group 1
Background

– Anna and Jack Oleson started Royal Beginnings in 1990 to serve unmet demands
of local bridal market
– Anna estimates around 300 weddings a year in the area
– Royal Beginnings withstood local challenges and is the only successful store in
the vicinity
– The young population is growing in recent years, however, weddings per 1000
population has come down
Background

– Royal Beginnings is facing some supply chain challenges recently

– The business is majorly dependent on suppliers
Royal Beginnings offers
– Bridal Gowns
– Bridesmaid Dresses
– Mother of Bride/Groom Dresses
– Prom Dresses
– Tuxedoes
– Other Wedding accessories
 Important Factors for Customers

The important factors for RB customers are

– Good Customer Service
– Availability of Styles
– Price
– To fulfil above factors, RB offers good customer service and high quality personal
consultation. Around 50% customers who avail consultation endup buying from RB
store.
– RB is focused on providing products that suit customer taste and pocket.
 Paramount factors in buying
Merchandise
The important factors for Anna while finalizing merchandise and to suit her store
model are
– The supplier should have Low or No minimum order Quantity
– The supplier should provide ample varieties and that the product doesn’t go out of
trend soon, suiting the non metropolitan needs
– The supplier should have good customer service and purchase policy.
– The suppliers who are willing to collaborate like Jim’s Formals are Ideal
 Supply Chain Dynamics

– In the current bridal products market the suppliers have higher bargaining power
than the retailers
– The bargaining power can be attributed to niche market, years of service, threat of
substitutes and alternatives is very less
– Recently RB faced issues with suppliers in missed deadlines and faulty
customer/returns policy
– RB has to face loss of revenue and more worrying thing was bad word of mouth
which spreads like wild fire and hampers goodwill built over decades
 Change in situation with Suppliers

– Royal Beginnings can change the current supply chain dynamics

– RB should look at renegotiating terms with the existing suppliers

– RB should also search for new suppliers which fit the needs and

demands of RB and the target area

 RB Supplier Selection

– RB can utilise a FEMA tool as part of strategic supply management sourcing

– Guidelines for Failure modes, Severity, Occurrence, detection, priority and action
should be listed based on available data
– RB can study data on failures and lapses from side of a supplier and can come up with a
contingency plan
– By evaluating frequent lapses, the alternative sourcing and other actions should be
listed down. Depending upon supplier’s default history call can be taken on association.
Equation with Current Suppliers
 Equation with Current Suppliers

– In the previous table the factors favourable to RB are marked in green

– Ideal scenario for RB would be price should be low to medium, MOQ low, style and service
high
– Even though Bridal constitutes for 25% of sales RB doesn’t have perfect supplier that fits its
criteria
– RB has good suppliers for Tuxedos, MOBG and special occasion dresses
 Equation with Proposed Suppliers

– All three proposed suppliers fit the criteria for RB, however only Davinci and
Milano offer Bridal Gowns
– Depending upon service RB can tie up with one or both of the new suppliers
 Steps to Improve Supply Chain

– Royal Beginnings can search for new suppliers that fit RB’s needs

– Royal Beginnings is still operating manually for few tracking and supply chain operations

which can be improved leveraging technology

– Anna and Jack can improve relations with existing and new suppliers, where both customer

and supplier understands each others needs

Thank You