A conversation with Richard Haugen, chief operating officer at Yak Pak, a New York-based designer and manufacturer of fashion bags and packs.

The hypermarket pioneer, in a supply-chain overhaul, centralizes purchasing and outsources distribution-center management.

Costly automation and price cuts weren't working. A new approach centered on increased outsourcing, flexible manufacturing and distribution, and establishing operations in Mexico. Now, Master Lock is saving money and getting new products to market faster.