SOURCING

What is Sourcing? The process of procurement of any product to meet organization business objective is called sourcing. Determines where, when and how an organization’s product is made.

Objective of sourcing “Main objective of sourcing is to getting the right product for the customer at the right place, right price and the right time”

Sourcing in Apparel industry Raw material sourcing fabric sourcing Trims sourcing Packaging material sourcing Finished product sourcing

Sourcing Structure

Sourcing Criteria Quality Product Ethical trading policy Stock management Lead time Responsiveness Lower mark down Reducing cost

Criteria for vendor selection Merchandise and price offered Vendor reputation and reliability Credit policy and other terms Service provided Lead Time CSR

Global Sourcing

Why Global Sourcing? Labor rates Better Govt. Policies Larger English speaking population Global benchmarking Better practices and so the quality Better infrastructure

Global sourcing Model

Trends…

Sourcing Options

Sourcing decisions….

Internal manufacturing

Internal manufacturing

Benefits Control over flow of raw material, production schedule and deliveries Quality more easily established and monitored Response time can be altered according to the priorities by the owner The cost incurred on a long term basis for a garment reduces

External manufacturing Using an outside contractor for manufacturing purposes Eliminate the financial risk of owning plants and equipments and carrying overhead during downtime.

External manufacturing

CMT Sourcing benefits Flexibility Reduce investment Control over design

FP Sourcing Benefits Limited technical knowledge Limited investment Limited commitment But should have a strong quality department to ensure the end product quality