Tidily Tees Toronto based online custom t-shirt design and sales company. Company supplying raw materials (blank tee shirts without design and text) from Bella-Canvas US based company. Tidily Tees's customers are 90 % US based and only 10% are Canadian. Company carrying only black and white color blank t-shirts in inventory and for all other colors working with a third-party printing company named Printify to avoid high inventory holding cost. In Tidily Tees system working like this; after receiving a new customer order all black and white color t-shirts printed in-house and shipped by Tidily Tees. For other colors, artwork design should be uploaded to Printify's system, t-shirts mostly printed and shipped in 2 business days to Tidily Tees's customer by Printify. Unit cost of working with Printify 20% more than in-house printing and shipping operations. Another problem working with Printify is stockout issues for some t-shirt colors resulting delivery delay. Last issue Tidily Tees dealing with high shipping cost to US. Shipping printed t-shirts to US from Toronto (for in-house black and white t-shirts) around $7 but inside the US same package costing only $3 (Printfy has option to print in US or Canada). Company growing approximately 10% every year according to last 5 years sales records.

Tidily Tees owner Baha Oz need your help to grow his business and make it more profitable. As a supply chain network design expert under the current circumstances analyze this case and firstly take the current picture from distribution network design models perspective (which distribution network model company currently using? Advantages and disadvantages etc.). Secondly suggest some strategic network design ideas for long term success.