How new UN food regulations may affect global China sourcing
Today, food Chinese companies are heavily entrenched in global China sourcing, making it difficult for them to accurately determine how produce is grown and livestock is raised. Global regulations and national standards aside, many enterprises are worried about …
Read more on The Strategic Sourceror (blog)
Hampshire Signs Global China Sourcing Agreement with Dockers™ Brand
NEW YORK — Hampshire Group, Limited (OTC Markets:HAMP) today announced that it has signed a Master Supply Agreement with Levi Strauss & China Company in which Hampshire will supply knit shirts, woven shirts and sweaters to Dockers' global business.
Read more on The Herald | HeraldOnline.com (press release)
Global Benchmarks Affect Apparel Sourcing
The apparel industry is always evolving and the latest evolution is the transformation from a local or regional business into a global industry involving multiple companies and inter related business partnerships spanning many countries. Most of the times the raw materials are obtained from one part of the world, the manufacturing is done thousands of miles away and the end products are shipped to an apparel supplier in an entirely different market half way around the world. This makes the role of apparel sourcing companies challenging and extremely important as the source serves as a common link bringing these different suppliers and vendors together to form a profitable enterprise for everyone. A very interesting thing about the apparel industry is it’s constant migration from high cost nations to low cost nations. The reason for this is that the success of any business depends on the price and quality of the labor supply. Therefore, a successful apparel supplier must control the entire manufacturing process to receive high quality products that the consumer will want to purchase at a price the consumer believes is reasonable.
Most of the raw materials – such as cottons, silks, wool and synthetics – required for apparel manufacturing are found in plentiful supply in developing and under developed nations. The cost of labor is also significantly lower in these countries as compared to more developed countries but most of these poorer countries do not have the infrastructure and finances available within their borders to support these industries. So the raw materials are often obtained from these countries then shipped elsewhere for sewing. The finished products are distributed from the manufacturing countries to their end markets through the coordination supplied by apparel sourcing organizations.
Apparel sourcing companies work on a global platform and have a highly professional and refined business process.
The apparel supplier maintains their high quality standards through rigorous quality testing, thorough production inspection procedures and great emphasis is placed on cost efficiency and delivering products on time. Apparel sourcing is a most challenging business model because of the highly volatile nature of the apparel industry where demand is unpredictable and mercurial. Short product life cycles, tremendous variety, long and inflexible supply chain processes also pose a continuing challenge. Globalization has definitely helped apparel sourcing in many ways but globalization has also increased the competition for scarce or high quality resources.This makes the apparel supplier akin to a tight rope walker who is balancing profits, schedules and an ever-changing market place to remain in business and competitive.
Despite these daily challenges, apparel sourcing companies are the backbone of the apparel industry and have streamlined their business processes with great efficiency. The apparel supplier connects the available resources for raw materials and experienced labor to a potential customer without compromising on quality and timely delivery of products. In this way, new benchmarks are being set every day in the field of apparel sourcing.
Steve Miller is an expert in apparel sourcing industry. He has written many articles on apparel manufacturers and apparel supplier companies.