The development of this global sourcing plan was completed throughout the semester as a team. First, a fictional store brand and product line was developed, and based on the needs of this brand we chose a leather supplier located in Italy. We completed a PEST analysis of the country our supplier was located in, as well as a micro analysis of the supplier itself. We created a Time and Action calendar, costing sheets, and a purchase order in order to portray the merchandise mix and other factors in our supplier decision. Lastly, we developed both a Quality Assurance checklist and a Supplier Evaluation sheet which would be used by our company. Every detail, from shipping, to payment, to logistics, was researched and considered in this project.  My role in this project was as the team leader and powerpoint designer (I enjoyed creating the MODA. logo), which received the 3rd highest score in the class.   (COPYRIGHT 2018 - Property of Sandra M Post)

1. Group #1
MODA. - Italy
CADS 5600: Global Sourcing

2. Our
Team
Brand
Lindsey Allred
Manager
Marie Post
Leader
Olivia Cissell
Sourcer
Taylor E. Jones
Editor
Erin English
Innovator
Megan Anderson
Organizer
Lauren Harris
Contributor
Offline store located in NYC
Price Range: $150-$800
Concept: Provide quality fashion with
a specialty in leather goods.
Missions Statement:
MODA’s mission is to offer quality luxury goods
that are made to last a lifetime and can be
passed down throughout generations. We
provide unique and fashionable products of
the highest craftsmanship that fit our
consumers’ distinguished lifestyles.

3. 42: Articles of leather; saddlery and harness; travel goods, handbags and similar containers
43: Furskins and artificial fur; manufactures thereof
62: Articles of apparel and clothing accessories, not knitted or crocheted
64:Footwear, gaiters and the like; parts of such articles
PRODUCT LINE DEVELOPMENT: MERCHANDISE CATEGORIES
Chapter Heading
Merchandise category
Classification Sub-classification
42 4202 Handbags Purses, Wallets
42 4203 Outerwear Leather Jacket
43/62 4303/6202 Outerwear Fur Coat, Blazers, Trench
64 6405 Footwear Heels, Boots, Booties
62 6204 Dresses Cocktail, Work, Casual

4. Based on these style trends,
we will focus on buying fabrics
like leather and fur that
connote naturalism, along
with luxurious fabrics like satin
and silk. We will also look for
accessories with piping and
metal details. Clean lines and
classic silhouettes that have
added texture will be
important to our merchandise
mix.
o Fabrics: Protein fabrics,
leather, fur, tweed
o Style: Earth and neutral
color tones
o Fringe, feathers, and
metal
o Highly textured
“Raw & Rustic”
o Classic, timeless
craftsmanship, with
minimalist undertones
o Fabrics: Silk, jacquard,
cashmere, velour, satin
o Style: Piping, smooth,
embroidered details
o Soft colors, gold
“Imperial”
Doneger Creative Service (2018). F/W Seasonal Trend Forecast. Retrieved from www.doneger.com
SEASONAL TRENDS F/W
2018

5. MACRO ANALYSIS:
COUNTRY OVERVIEW
o Located in Southern Europe
o Home to more than 60 million people
(and 160 types of pasta)
o Italy has a rich ancient history, including
Rome which is the capital
o The 5th most visited country in the world
o Majority Roman Catholic population
o The flags colors stand for hope, faith,
and and charity
o Italy is also home to more famous
fashion designers than any other
country, such as Fendi, Prada, Versace,
Valentino, etc.
https://www.eupedia.com/italy/trivia.shtml https://www.britannica.com/place/Italy/History

6. P - Political System
o Has some political instability
o Italy and the United States are
partners via the Transatlantic
Trade and Investment
Partnership (T-TIP)
o Italy is a part of World Trade
Organization (WTO)
o Strict regulations on imports
due to their past heavy
reliance in using other nations’
natural resources
o World’s 10th largest exporter
MACRO ANALYSIS: PEST ANALYSIS
Executive
JudicialLegislative
https://www.focus-economics.com/countries/italy
Republic with 3 Divisions:
6.9%
Amount of Italy’s
total exports that
go to the United
States

7. MACRO ANALYSIS: PEST ANALYSIS
E - Economy
o Economic systems and
characteristics: improvements
in judicial effectiveness,
government spending, and
fiscal health have been offset
by declines in government
integrity and property rights.
o Charter member of NATO and
the European Union Trade
o While the exchange rate is
higher to source from Italy,
MODA. knows its customers
would not mind paying an
increased price in exchange
for the quality Italy has to offer.
• Ranked 8th
in the world
for exports
• Ranked
9th in the
world for
imports
• Exports• Imports
Fuel
17%
Mechanical
Machinery
Clothing and
Footwear
accounts for
11% of total
exports
Net food
importer
through
agriculture
GDP per capita
$27,363 million
Employs 4.0% of
the total
workforce
Currency rate is
$1.24 U.S.=1 Euro
Population
size is 61.2
Million
https://tradingeconomics.com/italy/currency

8. There is no set minimum wage in Italy and
the average wage is 1,400 euros per
month
Italy is known for its high-quality
craftsmanship, sharp tailoring and luxury
designs, the manufacturing and export of
fashionable items is an integral part of the
country's economy.
Punctuality is not important and delays are
normal and work plans are not taken
strictly
S – Social
https://www.indexmundi.com/italy/literacy.html https://wageindicator.org/main/salary/minimum-wage/italy http://businessculture.org/southern-europe/business-culture-in-italy/business-etiquette-in-italy/
MACRO ANALYSIS: PEST ANALYSIS
T- Technology
99.2% Very high literacy rate
Italians prefer face to face contact but
also have a phone and mail system
Italians do most of their transportation
through ocean or air
Robotics and automation are seen as
promise to the italian apparel industry,
Italy also sells its technology and robotics
that make their apparel products to other
countries

9. o Italy has beneficial political factors for trading with MODA. Italy has a similar
government in place as the U.S., and Italy and the U.S. are already trade
partners through the Transatlantic Trade and Investment Partnership. Italy will be
eager to export their goods to the U.S. because their government is in a trade
deficit, and will try to offset that by increasing their exports to other countries.
o The economic benefits of Italy are also favorable for trading with MODA., as they
have the 3rd largest economy in the nation.
o Possibly the most beneficial factor from sourcing from Italy is their social factor,
specifically their specialty in high-quality craftsmanship for luxurious products,
such as leather, that MODA.’s customers expect.
o MODA.’s customers are fashion-forward and want their trendy and luxurious
leather goods as soon as they can get their hands on them, which is possible by
the technological factors in Italy, such as transportation speed, new robotic
technology, and up-to-date infrastructure.
MACRO ANALYSIS: CONCLUSION
Based on the PEST analysis, Italy will meet MODA.’s mission to offer luxury goods
made with quality that will last a lifetime through the political, economic,
social, and technological factors.

10. o Officially founded in 2010, the
Siciliano families experience in
leather making dates back three
generations. Their passion was
rooted in the production of ancient
Neapolitan glove production,
beginning in 1935 with Grandfather
Giovanni, and then continued by
his sons in 1970, and their sons
today.
o Located in Italy, specifically the
cities of Solofra and Napoli, NPP
specializes in glove production with
the use of their leather, but also
serves as a wholesaler for high
quality leather and other services.
o This company is a partnership
between Giovanni’s two sons,
Gennaro and Antonio.
o It is a small firm with two
branches as mentioned
previously.
o The brothers are joined by a
small group of skilled leather
craftsmen in their production
process.
o As a wholesaler, they do work
internationally and have a
relationship with the United
States.
MICRO ANALYSIS:
SUPPLIER
http://www.nuovapartenopeapellisrl.it/our-products.html
Nuova Partenopea Pelli

11. MICRO ANALYSIS: SUPPLIER ANALYSIS
Right
conditions
Having two locations in Italy, with ease of contacting through email, phone and fax, this is
a good fit as a supplier for our company. They practice sustainability by wasting as little of
material as possible, and selling excess as remnants. Their certificates assure that they are
and have followed any related laws.
Right
products
Nuova Partenopea Pelli specializes in superior sheepskins, goatskins, and finished leather.
They are also known for their production of gloves, footwear, and clothing.
Right quality
Nuova’s leather meets and exceeds our expectations for quality as they offer a variety of
types and finishes as well as colors of high quality leather. The company takes extreme
pride in their craftsmanship, and meets our standards for the leather we desire to use in
our products.
Right time Quick lead time
Right price
There is no set minimum wage in Italy, but the labor cost is reasonable for the high
standard of leather that we are interested in. The materials also meet the right price that
we are interested in spending. We expect to pay duties when importing the products, and
are glad to have a relationship with Nuova in which we are able to negotiate final pricing.
http://www.nuovapartenopeapellisrl.it/our-products.html

12. MICRO ANALYSIS: CONCLUSION
o Sourcing our raw leather goods from Nuova Partenopea Pelli is a good fit for MODA.’s Leather
Goods because they have the right conditions that we are interested in, a quick lead time, and
a reasonable price for labor and materials.
o However, what makes them the most appealing to our company is that they will supply the
highest quality leather and materials made directly in Italy, which is highly sought after by our
customers.
o Overall, they are a good fit for our luxury market needs as they meet the criteria for heirloom
quality and craftsmenship.

13. MICRO ANALYSIS: SOURCING OPTION
We have decided that Cut-Make-Trim Contracting
(CMT) is the best sourcing option for us. This way, we
as the sourcer will be able to provide the design that
we want, as well as the fabrics we wish to have used
and embellishments.
Why?
Our supplier, Nuova, will then be responsible for
cutting, sewing, assembling and finishing the
products. This option meets MODA’s brand concept
by being able to provide authentic luxury Italian
leather goods to our customers, using only the finest
of leather.
How?
The advantages of using CMT sourcing for Moda is
that we will be able to provide our own designs, and
have them fully produced by Nuova.
Advantages
The disadvantage of this option is that other than the
design, we will not see any of the actual production
process in person until the finished product is
delivered to us.
Disadvantages

14. PURCHASE ORDER & PAYMENT: TIME & ACTION CALENDAR
o We approximated a 57 day
overall prodcution process in
order to supply the best
quality goods.
o We also estimated 3-5 days
shipping time since we will
use expedited shipping but
our goods come from a
distance.
o We assigned 2 days for the
Lab Dip Application’s, in
order to ensure the lab has
time to perfect the color
fabrics.
o Booking fabrics was also
given 5 days to be
completed to ensure fabric
choices are highly
sophisticated.

15. PURCHASE ORDER & PAYMENT: SOURCING COSTING SHEET

16. PURCHASE ORDER & PAYMENT: PURCHASE ORDER
o We chose a size range of
US 2, 4, 6, 8 and bought
more size 4/6 since these
are standard and
popular sizes for our
target market, and
fewer size 2/8 which
would be less common.
o We bought a higher
quantity in Camel colors
since this earthy tone will
be trending for fall.
o We also invested more in
our leather accessories,
which are the core of
our business.

17. Cash in Advance
The sourcer pays
before a
shipment is made
(highest
commitment from
buyers side)
Open Account
Consignment sales
contract, but with a time
limit
PURCHASE ORDER & PAYMENT: PAYMENT METHOD
Via The Bank - two
banks involved to
facilitate payment: the
suppliers(remitting bank)
and the sorcerer's
(collection bank)
Document Collection
o MODA will be using the
Document Collection payment
method.
o The Cash in Advance method is
too risky, and would have a
high upfront cost.
o The Open Account method
also has the disadvantage of
not creating the long term
relationship with our supplier
that we want.
o Therefore, we feel that it will be
helpful to use D/C because it is
an industry standard, and will
give the job of handling
payments over to our bank.

18. QUALITY ASSURANCE & LOGISTICS: QUALITY ASSURANCE CHECK

19. QUALITY ASSURANCE & LOGISTICS: SHIPPING METHODS
o We plan to ship all items overseas through cargo-ship. Italy has a great infrastructure to maintain this method of
transportation, and this will help keep costs down in one area, since we are shipping most items in bulk quantities.
o To cover the cost of the products we will use the DDP shipping method that allows our goods to be fully covered by
insurance since they are of high quality and coming a long distance. This will help reduce risks that could occur
during the shipment process.
o With our A&T calendar the average lead time for shipping is 1-3 days from the factories that we have ordered from.
http://www.flamingo-shipping.com/en/page/ddp.html

20. QUALITY ASSURANCE & LOGISTICS: SUPPLIER EVALUATION SHEET

21. REFERENCES
1. Business etiquette. (n.d.). Retrieved April 04, 2018, from
http://businessculture.org/southern-europe/business-culture-in-italy/business-etiquette-in-italy/
2. Doneger Creative Service (2018). F/W Seasonal Trend Forecast. Retrieved from www.doneger.com
3. Euro Exchange Rate - EUR/USD - Italy 1957-2018 | Data | Chart | Calendar. (n.d.). Retrieved April 04, 2018, from https://
tradingeconomics.com/italy/currency
4. International Comparisons of Hourly Compensation Costs in Manufacturing. (n.d.). Retrieved April 04, 2018, from
https://www.conference-board.org/ilcprogram/index.cfm?id=38269
5. M. (n.d.). Interesting facts about Italy. Retrieved April 04, 2018, from https://www.eupedia.com/italy/trivia.shtml
6. Italy Economy - GDP, Inflation, CPI and Interest Rate. (n.d.). Retrieved April 04, 2018, from https://www.focus-economics.com/
countries/italy
7. Italy Literacy. (n.d.). Retrieved April 04, 2018, from https://www.indexmundi.com/italy/literacy.html
8. Minimum Wages in Italy. (n.d.). Retrieved April 04, 2018, from https://wageindicator.org/main/salary/minimum-wage/italy
9. Powell, J. M., & Knights, M. F. (2018, March 28). Italy. Retrieved April 04, 2018, from
https://www.britannica.com/place/Italy/History
10. Our Products - Nuova Partenopea Pelli srl. (2012). Retrieved February 9, 2018, from https://www.nuovapartenopeapellisrl.it/our-
products.html