Nature of Ms Read (m) Sdn Bhd

NATURE OF MS READ (M) SDN BHD

Ms Read is a fashion brand which design, manufacture and sell women's plus-sized clothes in Malaysia and Singapore since 1997 years. Until now there was total 14 outlets in Peninsular Malaysia, 3 outlets in West Malaysia and 3 outlets located at Singapore. The technology is getting more and more developed nowadays. Customers from overseas even can purchase through online gateways. Such as Paypal , Mobile88.

The main office is located at Jalan Sungai Besi (Wisma Ms Read). The main office is consist of  Finance Department, Fashion Department, Human Resource Department, Marketing Department, Operation Department, IT Department, Merchandise Department. The manufacture factory is just beside the main office. The factory which combined the above shoplot together. In 2016, there are total of 150 employees in the organization.

Our outlets located at the famous shopping centre such as Pavilion, Mid Valley, Empire Shopping Gallery and One Utama Shopping Mall. The monthly rental charges around RM 70K and we still need to paid for service charges, promotion charges and 3% percentage charges based on our gross sales. Furthermore, we are getting worried on the Melaka outlets. Their sales performance is bad and sometimes cannot cover the rental fees. Two outlets are going to closed down on 2016 year due to the bad sales performance. If we still continued the business , we will made a higher loss.

CRISIS FACED BY MS READ (M) SDN BHD

SITUATION  I

The merchandise and design team will go to overseas three times once a year for sourcing trip. They need to find out the fabric and accessories that suitable for the design. China is their first choice because China is the largest manufacturing in Asia. Once the merchandise and design team have confirmed the order. We will arrange our local forwarder to pick up the goods from China. So we need to paid for custom duty, import fees and freight charges.

When the staffs are arranged for the sourcing trip. We need to prepare cash advance for them to paid for the accommodation, refreshment, air-ticket fees and transportation. The travelling expenditure is not under control by the top management. It caused the staffs spend the money on other useless place.

On 2015, China devalued its currency which caused other Asian currencies to suffer and pushed the Ringgit Malaysia down further, as the devaluation of  RMB strengthened the US Dollar. Other than that, oil prices have fallen because supply has been exceeding demand, mostly due to higher production of oil in the US.

There may have a big impact on our purchase cost when the Ringgit Malaysia is going down. We need to paid for extra custom duty, import fees and the travelling expenses will cost higher due to the exchange rate.

SOLUTION:

The merchandise and design team can reduce the cost of raw materials. They can purchase from locally-based suppliers instead of buying from overseas supplier. This purchasing can be used to reinforce economic development and support strong communities when some of that money is spent with domestic suppliers. Working with a domestic manufacturer makes the communication process easy. Real time phone and in-person conversations result in a better understanding of the specifics of the product. With local production, communication is fast, along with shipping and lead times. We don’t have to wait for overseas shipments or hold-ups in customs. During the manufacturing process, many quality may arise. Such as fabric flaws, finishing technique or packaging among other things casue hiccups. With the personal connection a domestic manufacturer provides, we will be informed as they occur and solutions can be determined swiftly. This keeps production moving at a swift pace and ensures that the product meets all of our quality standards.