Download - Material Sourcing
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MATERIAL and PRODUCTION
SOURCING
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SOURCING
Fabrics and other raw materials for your
apparel or sewn product contribute about 50-
70% of the production costs
Sourcing:
Is the determination of the most cost-efficient
vendor of materials and/or production at a
specified quality and service level
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Sourcing in Apparel industry
Raw material sourcing
fabric sourcing
Trims sourcingPackaging material sourcing
Finished product sourcing
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Sourcing in Apparel industry Fiber production and marketing
Natural fiber and manufacture fiber (75%)
Yarn and fabric production marketing
Fabric categories: Fabric categories: Fancies: Short run
Staples: No change
Primary sources of fabrics: Mills: produce grey (=greige) goods.
Converters: finishers providing the dyeing or printing, and
finishing. Secondary sources of fabrics:
Jobbers ( buy mill overruns or tailings and sell)
Brokers
Wholesalers (sell broad assortments of fabrics)
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Sourcing in Apparel industry
Findings production and marketing
Findings: all the materials other than
fabrics,fibers, and yarns.
Interlinings, trim, zippers, buttons, thread.
Findings firms not only make but develop and
sell equipment for attaching products.
Snap and zipper firms may sell or leaseequipment.
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The role of sourcing decisions
Make or buy decisions may arise as:
The result of the development of new
products,
Desire to reduce costs,
Need for specialized equipment, skills
Unsatisfactory supplier performance, Increase or decrease in demand.
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The role of sourcing decisions
Factors in make or buy alternative (sourcingdecisions):
Costs (Price quote, bid)
Production capacity Required capacity is the total need for output of
materials, finished goods.
Demonstrated capacity is the volume of out put that a
plant, work center, or machine is capable of producing. Quality
Timing (quick response)
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The role of sourcing decisions
Make to Stock (for basic goods)
Sourcing plan= Forecast+ (Desired ending finishedgoods inventoryStarting finished good
inventory)Make to Order (for fashion goods)
Sourcing plan= Forecast + (Starting order backlog-Desired ending order backlog)
Backlogrefers to all orders received and not yetshipped.
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Materials sourcing processes Materials sourcing seeks and negotiates the acquisition
of materials. Materials supply determines the availability of fabrics
and findings for production of finished goods.
Sourcing specialists (buyers)
Retail buyers Select finished goods from product lines in apparel
markets and manufacturers showrooms
Work with manufacturers and contractors to developmerchandise for their firms, and they attend fashion showsto review product offerings and fashion trends.
Material buyers Make higher volume purchase from fewer suppliers.
Attend semiannual fabric shows
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Material Supplier Performance
Evaluation
Professional credibility
Production and delivery capabilities
Quality Price factors
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Selecting fabrics
Product identification
Lead times
Order minimums Fabric put-up
Material testing by the apparel manufacturer
Prices, price adjustments and costs Professional credibility of suppliers
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Predicting Aesthetics &
Performance
Hand and drapeability
Application of color Dyes/ pigments.
Structural or applied fabric design Structural fabric design are crated through
manipulation of yarns, fabrication, color, or texture.
Applied fabric design is created by printing,embroidery, quilting, other forms of fabric decoration.
Fabrication - Woven/ Knits
Finishes- Calendaring, polishing, embossing, andnapping
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Evaluating fabric quality
Receiving and inspecting materials Ensure correct shipments, on time, width and length, quality standards, damage.
Use a fabric inspection system
Fabric problems Patent defects
Visible variation
Shading (color variation), Fabric flaws (knots, holes, streaks,
stains, and slubs), bow and skew, inconsistent width, etc.
Latent defects Cannot be detected by viewing the fabric.
Examples: Shrinkage or stretching, Snap back, Colorfastness.
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Production Sourcing
Social responsibility
Related to human rights, child labor, working condition
The Sourcer (=a firm) has a written code of conduct.
The contractor (=a vendor) compliance (internationaltrade regulation) with the code of conduct.
A buying agent (=rep. of sourcing company in country)or subcontractor is involved.
Example of outside auditing system : WRAP(=Worldwide Responsible Apparel Production)
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Financial Options for Production Sourcing1. Own the manufacturing capacity (direct or joint investment). Example: Retailer andmanufacturers are vertically integrated.
2. Purchase the materials and have production done by contractors(Cut-make-trim = CMT) -Contractors cut and sew garments.
3.Have the contractor source materials and produce finished goods (Full packageprogram =FPP) -Contractors develop patterns, sources materials, produces.
4. Purchase or provide materials and have product development and production doneby contractors (half package program = HPP) - Sourcing firm provides the fabric.
5. Generate part of production and contract the rest: Called
shared production - Parts are assembled in the Caribbean Basin by the contractor.
U.S. labor rate tariff paid is very low, therefore the total cost of garment is reduced.
6.Purchase the finished goods from a manufacturer (wholesale):
Called Outsourcing.
7.Licensethe production.