The consumer knife industry: A comparison between the European and the American supply chains

Résumé du document

The subject we are going to deal with is the supply chain of the consumer knife industry. In order to explore and present the supply chain of the consumer knife industry, we compared the European and American supply chains. To do so, we decided to select 2 representative companies on the European and on the American markets, to describe their supply chains and the reasons why they use such strategies in the fields of supply, production and distribution networks. The 2 European companies will be Opinel and Victorinox and the 2 American ones will be Buck Knives and W.R. Case & Sons Cutlery. Finally, we will compare all of the supply chains, explain the differences between them as well as their similarities and the reasons for them.

Extraits

[...] Nevertheless, our goal to show the different consumer knife companies supply chains has not only been about schematizing the supply chain with all the different actors. The Opinel case has enabled us to have a clear view of the supply chain. For Victorinox, we worked towards finding similar aspects on their supply chains. Accordingly, we wanted to underline the impacts that have the marketing strategies related to the localization of the companies. We consider that the starting point of every supply chain is the localization of the main part of the company, in this case the knife factory. [...]

[...] Victorinox also took over the major competitor Wenger, located in the Swiss part of the Jura. Swiss cross stays in Helvetian hands. It is the best way to continue harboring the colors and the reputation of a quality label, as well as confronting competition on international markets together” explained Karl Elsener. In Victorinox, we believe in social responsibility but we also see a marketing benefit which explains it's self with all the examples we gave in the previous part dedicated to the family aspect of Victorinox. [...]

[...] Laguiole, Opinel or the cutlery of Thiers are significantly exported, especially in the United States of the turnover of the company Opinel is created thanks to exportations, especially in Italy and the United States. However, the consumer knife industry is also famous in Western Europe and Japan. Switzerland, with its major brand Victorinox, is a major competitor. This brand is in fact the pioneer of the red multifunction knife, more commonly named Swiss Knife because of its color and its Swiss cross on these knives. [...]

[...] - The travel knife or clasp-knife is designed to be transported. Its blade folds up in the handle to preserve the blade and ensure the safety of the holder. In this category, we can find many regional and traditional knives. - The straight knife includes military knives trapper knives, throwing knives and art knives. They all have the same features, they are simple, solid and long. - The Swiss knives and multifunction knives include many tools such as saws, cork-screws, openers, hooks, etc. [...]

[...] The outsourcing of part of the company's production to China was done for both economical and non economical reasons. Indeed, the Chinese suppliers are able to provide 20 to 30% cheaper products after delivery. On the other hand, Buck Knives started relocating a factory from El Cajon, California to Post Falls, Idaho in 2005 and needed to keep its production working. The solution of using cheap labor from China was then a great opportunity. After the end of the relocation to Idaho, the production was gradually brought back to America and Buck Knives expects to make 95% of their products in the US by 2010. [...]