Psudo-Setting New Standards for Sneaker Manufacturing

Case Code: OPER160
Case Length: 9 Pages
Period: 2022
Pub Date: 2023
Teaching Note: Available

Price: Rs.200
Organization : Psudo Inc.
Industry :Textiles & Apparel
Countries : -
Themes: Sustainability, Supply Chain Management

Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case describes a sustainable way of manufacturing sneakers, which happen to be a major contributor of global greenhouse emissions. The material used in sneakers, like petroleum-derived plastics, left a heavy carbon footprint on the environment. As there were frequent introductions of new sneaker designs, many sneakers were getting tossed into landfills, contributing to greenhouse gas emissions.

Most of the sneakers were manufactured in low-cost manufacturing facilities in China or Vietnam and later shipped to the USA. Though this offered a lean supply chain to sneaker companies, it also came with its own challenges, like increased cost of reverse logistics, high inventory costs, etc.

Psudo Inc., founded in the year 2020 by Michael Rich and Kortney Rich, sneaker manufacturers in the USA, intended to change the way sneakers were manufactured. It manufactured sustainable sneakers and offered affordable, lightweight shoes. The company offered sneakers that were manufactured using locally sourced and recycled materials in the USA and were made with eco-friendly recycled fabric.

The company was slowly gaining ground with customers as well as in terms of funding. It had huge plans for the future, which included setting up an omnichannel distribution network, collaboration with various designers and artists to come up with newer designs of sneakers, and also entering the circular economy wherein the customers could return used sneakers, which could be recycled into a new pair.

Issues

The case is structured to achieve the following teaching objectives:

To understand how individual businesses can adopt sustainable manufacturing processes.
To understand the effect of sneakers and their manufacture on the environment.
To build awareness about ethical fashion.
To evaluate the downside of outsourcing to low cost destinations

Introduction

The Sneaker Industry in the USA

The Environmental Impact of Sneakers

Psudo inc.

The Manufacturing of Psudo Sneakers

Future Outlook

Exhibit