Sourcing Information

Sourcing can be considered as a way of obtaining a competitive advantage.

In order to expand on the knowledge needed to carry out the sourcing function itself, relationship marketing is applied, and an open attitude to intercultural integration may be necessary in a geographically diverse supply chain. The sourcing of garments and fabric is essential when considering the manufacturing process. The types of textile available vary from supplier and as does the quality. In a bid to boost the textile industry in Britain it is important that retailers choose suppliers available locally rather than internationally. With the use of the internet, companies have found it easier to obtain the right suppliers from around the world. This is detrimental to British Suppliers in the UK, and I hope that businesses decide to make purchases closer to home. During the purchasing process, a retailer should take into account unit purchasing costs on semi-finished and finished garments.

 Apparel firms operating in retail trade can adopt two distinct sourcing strategies in order to proceed to purchasing their requirements: 

(1) Purchase of already made garments from manufacturers who integrate research and development of collections (sourcing by the pure retailer) 

(2) Purchase of semi-finished products (fabric and yarn) and manufacturing services (woven garment-making or knitwear ) integrate with the firm’s capabilities (sourcing by the industrial retailer) 

The Lean Supply Chain and The Agile Supply Chain 

The lean supply chain originates from the supplier’s ability to offer the lowest unit price. The lean supply is therefore successful when price is the main customer driver. The agile supply chain, on the other hand, typically refers to products with higher fashion content (fashion goods). The product life cycle in the agile supply chain is much shorter that that expected with the lean supply chain. The agile supply chain is successful when product availability represents the major customer drive. The reason that the lean supply chain is more popular, is because there is a possibility of limiting the quantity of unsold stock, while achieving relatively elevated profit margins per unit sold.