1. SOURCING

2. 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.

3. 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”

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

5. Sourcing Structure

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

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

8. Global Sourcing

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

10. Global sourcing Model

11. Trends…

12. Sourcing Options

13. Sourcing decisions….

14. Internal manufacturing

15. Internal manufacturing

16. 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

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

18. External manufacturing

19. CMT Sourcing benefits Flexibility Reduce investment
Control over design

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