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AVASO, Facilitates Seamless Transition for Major US Apparel Manufacturer in Thailand

Client Description

A major US based apparel manufacturer and direct retailer made the strategic decision to establish a direct entity in Thailand and exit a distribution partner agreement after several decades of operating under that agreement. By exiting the distribution agreement, the company was forced to stand up back office, store, technology, and other business processes almost from scratch. The company had leveraged the distribution agreement to establish brand recognition for several years, so a smooth transition and execution were key to the implementation in support of this strategic initiative.

The company leveraged their existing global vendor, a global MSP, to shepherd the process and establish a support model form a technology perspective in Thailand. In turn, the MSP selected AVASO as a subcontractor based on the company’s capabilities, flexibility to execute a pre-conceived strategy, and experience across APAC supporting other clients of the MSP, over alternate choices for support partners. Among the business factors of the selection process was cost
competitiveness, familiarity in Thailand, and depth/breadth of capabilities across the region.

 

Background

The apparel manufacturer opted to transition from a distribution partner agreement to a direct entity in Thailand. This strategic shift required establishing operational support services independently, in accordance with local law, all without adversely affecting the brand or interrupting store sales in country. AVASO was selected by a global MSP, acting as the prime contractor, to facilitate the onboarding of MSP provided hardware and get it into the stores to support operations, including POS transactions. and in-store technology support, leveraging its expertise and experience in the region.

 

Challenges

  • The client faced challenges in rolling out technology products independently in Thailand.
  • Dependency on a distribution partner for operational support was now displaced.
  • The strategic decision to establish a direct entity in Thailand, starting operations from scratch.
  • Limited time between the end of the distribution agreement and the launch of the new entity.

How AVASO Resolved the Challenge

  • AVASO established a depot in Bangkok to facilitate operations, avoiding shipping costs and delays by leveraging an alternate APAC based depot.
  • Leveraged badged resources in-country to stage equipment and prepare for rollout.
  • Installed client images on systems and provided onsite support at store locations.
  • Positioned as a subcontractor to the prime contractor, maintaining ongoing support for the client.

Strategy & Lessons Learned

Establishment of a Bangkok Depot in Thailand to support local deployment requirements.

Utilized dedicated personnel and local partners to ensure a smooth transition.
Installing broadband service connections at an internal cost to expedite image loading and stay on schedule was paramount to meeting the increased demand and driving efficiencies.
A clear and concise project plan established the baseline and framework to execute the program with minimized escalations and ensured high performance
feedback.

 

Outcomes

  • AVASO continues to provide comprehensive retail support in Thailand.
  • The Thailand depot serves as a support hub for other clients in the country.
  • Scope expanded to include operations in Japan for the client.

Conclusion

AVASO's role as a subcontractor to the prime contractor facilitated the seamless transition of the US apparel manufacturer as they shifted form an outsourced

distribution business model to the establishment of a direct business entity in Thailand. By collaborating closely with the prime contractor and their client, leveraging local resources, and maintaining a clear project plan, AVASO ensured the successful implementation of support services, leading to ongoing client satisfaction and expanded opportunities in the region.