Sourcing Practices In The Apparel Industry

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Sourcing Practices in the Apparel Industry

Sourcing practices in the global apparel industry are changing because of the removal of quotas, new trade agreements, and a drive by apparel importers to lower costs. This study addresses the implications of these changes for garment manufacturers in Commonwealth developing countries. The principal research activities behind the book consisted of face-to-face interviews in North America with top sourcing executives of apparel importing companies and senior executives of apparel manufacturing companies and other stakeholders in six Commonwealth developing countries. The findings indicate that almost without exception apparel manufacturers are struggling to lower costs and to increase productivity so as to remain competitive. Government and industry are thus faced with critical decisions on how best to support the apparel industry in their respective countries. The principal outputs of the study are enterprise level guidelines to remain competitive in the face of evolving sourcing policies, technology, and practices, complemented by related frameworks at government and institutional levels.
Sustainable Fashion Supply Chain Management

This handbook is a compilation of comprehensive reference sources that provide state-of-the-art findings on both theoretical and applied research on sustainable fashion supply chain management. It contains three parts, organized under the headings of “Reviews and Discussions,” “Analytical Research,” and “Empirical Research,” featuring peer-reviewed papers contributed by researchers from Asia, Europe, and the US. This book is the first to focus on sustainable supply chain management in the fashion industry and is therefore a pioneering text on this topic. In the fashion industry, disposable fashion under the fast fashion concept has become a trend. In this trend, fashion supply chains must be highly responsive to market changes and able to produce fashion products in very small quantities to satisfy changing consumer needs. As a result, new styles will appear in the market within a very short time and fashion brands such as Zara can reduce the whole process cycle from conceptual design to a final ready-to-sell “well-produced and packaged” product on the retail sales floor within a few weeks. From the supply chain’s perspective, the fast fashion concept helps to match supply and demand and lowers inventory. Moreover, since many fast fashion companies, e.g., Zara, H&M, and Topshop, adopt a local sourcing approach and obtain supply from local manufacturers (to cut lead time), the corresponding carbon footprint is much reduced. Thus, this local sourcing scheme under fast fashion would enhance the level of environmental friendliness compared with the more traditional offshore sourcing. Furthermore, since the fashion supply chain is notorious for generating high volumes of pollutants, involving hazardous materials in the production processes, and producing products by companies with low social responsibility, new management principles and theories, especially those that take into account consumer behaviours and preferences, need to be developed to address many of these issues in order to achieve the goal of sustainable fashion supply chain management. The topics covered include Reverse Logistics of US Carpet Recycling; Green Brand Strategies in the Fashion Industry; Impacts of Social Media on Consumers’ Disposals of Apparel; Fashion Supply Chain Network Competition with Eco-labelling; Reverse Logistics as a Sustainable Supply Chain Practice for the Fashion Industry; Apparel Manufacturers’ Path to World-class Corporate Social Responsibility; Sustainable Supply Chain Management in the Slow-Fashion Industry; Mass Market Second-hand Clothing Retail Operations in Hong Kong; Constraints and Drivers of Growth in the Ethical Fashion Sector: The case of France; and Effects of Used Garment Collection Programmes in Fast Fashion Brands.
A Comparison of Sourcing Strategies in the Apparel Industry. Case Study of the H&M Group and Inditex

Bachelor Thesis from the year 2015 in the subject Business economics - Miscellaneous, grade: 9, University of Groningen (Business Economics), course: Bsc International Business, language: English, abstract: In this thesis a comparison is made between the H&M Group and Inditex to measure the differences in overall performance of outsourcing and in-house production in the apparel industry. Outsourcing is often discussed in the literature as the perfect solution to cost reductions however the literature lacks results on the actual performance; this article measures the performance obtained through outsourcing and in-house production. H&M is studied because it has a fully outsourced production, where Inditex mostly produces its products in-house. Performance is measured by the follow variables: costs, agility, asset utilization and product quality. Costs and asset utilization were measured using an independent samples t-test; comparing costs of goods sold salary expenses and overall expenses as a percentage of the revenue, asset utilization is measured by comparing the return on assets ratio. Agility is studied by an in-depth analysis and product quality based on a survey on consumer perception. The results show that H&M has significantly reduced its costs by outsourcing, while Inditex with higher costs is able to keep a very short lead-time. H&M has been successful in increasing return on assets and product quality is perceived equal for both companies. This article contributes to the field of research by showing that outsourcing does lead to cost reduction, however in-house production leads to better performance in agility.