material sourcing

8/12/2019 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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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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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.

material sourcing

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