R O YA L

BEGINNINGS
BRIDAL &
FORMAL: BUYING
FOR A BOUTIQUE
B Y G R O U P - 9
CASE BACKGROUND
• In 1990, Jack and Anna Oleson established Royal Beginnings (RB).
• Beginning with bridal gown lines, RB expanded the category to include mother's, bridesmaid, and
prom attire.
• Tuxedos and other accoutrements were also available so they could cater to different
demographics.
• Due of its customer service, high-quality merchandise, better styling, and affordable prices, RB
quickly gained popularity.
• RB was successful with suppliers for the past 23 years, but owing to recent occurrences that
placed pressure on the brand's reputation and store profitability, Anna is considering how she can
stick with the present suppliers who have a more transactional relationship with RB.
ADDRESSING CUSTOMER NEEDS
• Customers of Royal Beginnings desired high design, reasonable pricing, and superior service.
• When a customer enters the store, they want to feel special.
• Customers of Royal Beginnings desired excellent fashion (Cadillac tastes) at a lower price point
(Yugo).
• Customers were focused on getting the right fit and appearance for their gowns.
• They desired in-person consultations to choose their wedding's theme, colour, and style.
• Prior to visiting the store, they wished to be informed about the products. Few labels, such as
Maggie Sottero and Mon Cheri, were widely coveted.
MEETING CUSTOMER DEMANDS
• Royal Beginnings did not compromise on style, value, or customer service.

• Royal Beginnings trained their salespeople to treat every customer with grace.

• Royal Beginnings trained its consultants to use their clients' ideas to produce fashionable clothing
on a budget.

• They always have outstanding seamstresses on staff to make the best modifications.

• For customers, they created a Consultation Agreement with a $25 cost for two hours.

• Customers could explore the assortment of goods and services offered by the shop by visiting the
website for Royal Beginnings.
ISSUES WITH SUPPLIERS
 Lack of collaborative effort:
o A China based supplier had defaulted on the delivery because he/she failed to inform
about the 14-day holiday on Chinese New Year.
o The supplier didn’t own the mistake, due to which Anna had to pay $300 to expedite the
delivery and had to make $325 worth of alterations for free and give extra discount of
$60.
 Miscommunication:
o Alfred Angelo being one of the oldest suppliers, Anna trusted its sales’ reps verbal promise
of “grand guarantee” which was misleading
o After an order of 5 dresses went wrong due to colour issues, sales rep demanded
replacement fees.
o Anna had to return the dresses with replacement costs and shipping fees to get correct order.
S U P P LY C H A I N P O W E R
 As the RB was a brick and mortar store sustaining for 23 years due to its strong customer base.

 The power of supplier seems low, thinking about the fact that Royal Beginnings Bridal And
Formal Buying For A Boutique is a popular international brand with a big customer base.

 The suppliers of business, that include: Sponsors, commercial partners and shopping centre
would want to sustain their association with the brand name due to the guaranteed profits and
positive image.
CHANGING THE CURRENT
S I T U AT I O N

 As RB has more power in the supply chain over its suppliers, the change is possible.

 RB should come to terms with suppliers and document the agreements & promises with
conditions of reimbursement for any breach.

 RB should try to collaborate with the suppliers who are willing to provide lower prices without
any MOQ.

 The discontinuing of particular style pattern by any supplier should not be done abruptly.

 RB should inform the suppliers about new terms and conditions, and if any existing suppliers
doesn’t agree with the terms. RB can try to replace it with new supplier or at least release the
existing supplier for time being.
USE OF FMEA IN SUPPLIER SELECTION
Probability of Probability of Risk Preference
Failure Mode Severity Occurrences Detection Number(RPN)
Delivery defaulted 8 6 9 432
Styling issues 6 4 8 192
Wrong order 7 3 8 168
Quality issues 9 2 7 126

Discontinuation of Style 3 3 6 54

Abrupt Price increase 6 2 4 48

 Based on the above table, Suppliers providing highest value at price would increase RB’s cost
savings. The timely delivery and better sourcing would lead higher efficiency and inventory
costs would be reduced.

 RB should collaborate with the suppliers who are aligned with its business practices and who
agrees on a mutually beneficial relationship.
SUPPLIER RETENTION
 RB can retain the suppliers on the basis of following criteria:
Criteria Requirements
Price (P) Low to Medium • Adrianna Papell and Ursula for large selection of dresses
Low to Medium
Minimum Order and fulfilling the criteria for P, MOQ, SVC and S
Quantities (MOQ)

Service (SVC) Medium to High • Maggie Sottero & Mon Cheri ( Brand Name and
Style (S) Medium to High Exclusive territorial rights)
• Jim’s Forma and Nedrebos as Tuxedo suppliers (No
Other Factors influencing the inventory and satisfies P, MOQ, SVC and S criteria )
relationship:
• Brand Name
• Exclusive territorial rights
• Partnership duration
NEW SUPPLIER SELECTION
 RB can select the new suppliers on the basis of following criteria:
Minimum Order Service Style (S)
Suppliers Price (P)
Quantities (MOQ) (SVC)

 Low to  Low -  High

Clarisse Medium
 Low to  Low -  High
DaVinci Medium
Milano  Low to  Low -  High
Formals Medium

• All three suppliers followed up with Anna four times indicating their interest
• All three new suppliers offers high fashion and stylish dresses at reasonable price
• Hence, these suppliers can be selected for Bridesmaid category (DaVinci preferred due to
relatively higher Number of Locations/Retailers)
THANK YOU!