MATERIAL and PRODUCTION SOURCING

SOURCING
Fabrics and other raw materials for your apparel or sewn product contribute about 5070% 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

Sourcing in Apparel industry

Raw material sourcing fabric sourcing Trims sourcing Packaging material sourcing Finished product sourcing

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:

M ills: 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)

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 lease equipment.

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.

The role of sourcing decisions

Factors in make or buy alternative (sourcing decisions):
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)

The role of sourcing decisions

Make to Stock (for basic goods) Sourcing plan= Forecast+ (Desired ending finished goods inventory Starting finished good inventory) Make to Order (for fashion goods) Sourcing plan= Forecast + (Starting order backlogDesired ending order backlog) Backlog refers to all orders received and not yet shipped.

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 develop merchandise for their firms, and they attend fashion shows to review product offerings and fashion trends.

Material buyers
Make higher volume purchase from fewer suppliers. Attend semiannual fabric shows

Material Supplier Performance Evaluation

Professional credibility Production and delivery capabilities Quality Price factors

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

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, and napping

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.

Fabric grading
Fabric grading systems (3 systems for grading woven fabrics) - To assess or grade the quality of fabric.
Ten point grading system 4 point grading system Graniteville grading system.

Textile performance standards

ASTM performance standards

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 (international trade 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)

Financial Options for Production Sourcing

1. Own the manufacturing capacity (direct or joint investment). Example: Retailer and manufacturers 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 package program =FPP) -Contractors develop patterns, sources materials, produces. 4. Purchase or provide materials and have product development and production done by 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. License the production.