On February 1, 2011, Enzo Natale, head of Finance and Operations at Altimus Brands in London (UK), received the latest monthly report and, as he feared, costs of purchases had increased again. He knew that by the end of the month he would have to present recommendations to the board. He convened a meeting with his team of buyers to prepare the recommendations focusing on RockyMountain, their top-selling brand. ALTIMUS BRANDS Altimus is a family-owned business with a global presence in the footwear sector. The company owns a portfolio of seven premium footwear brands, marketed in some 120 countries and in 2010 reached £1.3 bn in sales. Altimus operates about 230 retail outlets worldwide, but it also sold its products through other channels. Although the company name is rarely recognized by people outside the industry, its brands were well known around the world and considered the company's most valuable assets. To maintain and develop the value of its brands, the company relies on four core competencies: innovation, design, quality, and supply chain management. For many years manufacturing has not been central to the business; in fact they were one of the pioneers in sourcing from Asia, where they had been operating since the 1960s. It was precisely for this reason that Enzo believed the selection, management, and development of suppliers were key success factors.