Sourcing Presented By: Karla Susnjar and Ashley Lieurance
Sourcing • Sourcing is finding, evaluating and engaging suppliers of goods and services • There is a lot of thought that goes into sourcing, especially internationally • In order to be successful in sourcing you must plan what you will do with your product and where you will go with it • Two types of production • cut, make, trim • full package
History • Trading was its earliest form • For much of time the apparel industry was simply full package, everyone who made garments finished an entire piece before moving on to the next • During the Industrial Revolution the way people did business was changing and outsourcing became a thing • Many companies were finding out they could send production of clothing, shoes, and other goods to other countries, usually due to lower labor costs
Economic Status • The top five outsourcing countries are India, Indonesia, Estonia, Singapore, and Bulgaria • All these countries are still developing • These are the top five outsourcing countries because they have lower labor costs, less government regulations on the environment, and certain trade barriers
Textile and Apparel Industry • Cut , make, trim and full package is used by both manufacturers and retailers • In cut, make, trim manufacturers develop a style and gather materials under their control and outsource the labor- intensive jobs to other countries • Manufacturers in textiles and apparels use cut make trim because outsourcing operating a workshop in a different country does not have the limits for production capacity as it would in America • Outsourcing saves you money because of low labor costs, but it can come with poor communication, poor quality, and delays • Smaller firms in Europe and the Far East are offering full-package to gain trust and peace of mind • Gap and Nordstrom are trying to source using the full-package method to better develop their in-house name brands • Many firms out of Mexico, Asia, and Europe provide full-package services
Companies • The top five companies in the world that outsource are • Accenture- Dublin, Ireland $21.55 billion revenue in 2010- over 200 offices in 53 countries • IBM- Armonk, New York- smart with supply chain and save 3-5 billion each year • WirpoTechnologies,- Bangalore, India- one of the top technology vendors in the world • Affiliated Computer Services- Texas- saves 2 million a year • Sodexo- France- $14.7 billion Euros in 2009-manage 700 faciities • Solutions4, a division of BrookwoodCompanies strives to do the whole process from the textile expertise to the consumer divisions in a full package assembly • American Apparel are doing it all in house • The company is also able to control environmental sustainability and promote economic growth. • American Apparel supports free and fair trade, and almost half of the company's 250 stores are outside the USA, allowing the company to export hundreds of millions of dollars of US-made apparel annually
Related to Course • We discussed merchandising principles that apply to the textile and apparel industry around the world • Economics, politics, environment, culture, and social issues • This relates to cut make trim and full package sourcing because that is the foundation of the practices
Potential Employment • Jobs include • manufacturing • call centers • writing • graphic design • information technology support • security
Works Cited • "American Apparel | Fashionable Basics. Sweatshop Free. Made in USA." American Apparel | Fashionable Basics. Sweatshop Free. Made in USA.N.p., 2012. Web. 04 Dec. 2013. • Bowles, Estaban, and Sanjay Srikanth. "Stop the Roller Coaster in Apparel Sourcing."ATKearney. N.p., Oct. 2011. Web. 4 Dec. 2013. • Cornell University. "Cutting Edge: Sourcing Materials." Cutting Edge: Sourcing Materials. N.p., n.d. Web. 02 Dec. 2013. • (Cut) "CUT MAKE TRIM." CUT MAKE TRIM. N.p., n.d. Web. 04 Dec. 2013. <http://cutmaketrim.wordpress.com/2012/04/15/cut-make-trim-what-does-it-mean/>. • "Full Package Programs and Product Sourcing - Solutions4 - Brookwood Companies Incorporated." Full Package Programs and Product Sourcing - Solutions4 - Brookwood Companies Incorporated. N.p., n.d. Web. 03 Dec. 2013. • (Outsourcing) "History of Outsourcing." LoveToKnow. N.p., n.d. Web. 05 Dec. 2013. <http://jobs.lovetoknow.com/History_of_Outsourcing>. • (Jobs) "Most Popular Outsourced Jobs." Investopedia. N.p., n.d. Web. 02 Dec. 2013. <http://www.investopedia.com/financial-edge/0712/most-popular-outsourced-jobs.aspx>. • (Countries) "Top Outsourcing Countries." Top Outsourcing Countries. N.p., n.d. Web. 4 Dec. 2013. <http://www.sourcingline.com/top-outsourcing-countries>. • (Ten) "Top Ten ." Top Ten. N.p., n.d. Web. 05 Dec. 2013. <http://www.supplychaindigital.com/top_ten/top-10-business/the-top-10-outsourcing-companies-in-the-world>. • (Connect) "WeConnectFashion, a Fashion Industry Network, Brand Directory, Research, Market Information, Trends and Guide for Fashion Business." WeConnectFashion, a Fashion Industry Network, Brand Directory, Research, Market Information, Trends and Guide for Fashion Business.N.p., n.d. Web. 01 Dec. 2013. <http://weconnectfashion.com/fido/getarticle.fcn?&type=Guides&SearchString=Production+Issues&id=737870PP0000028&start=1&tr=10>. • (CMT) "What Does CMT (Cut, Make & Trim) Mean? | QualityInspection.org – QC & Sourcing Advice in China." QualityInspectionorg QC Sourcing Advice in China RSS. N.p., n.d. Web. 01 Dec. 2013. <http://www.qualityinspection.org/cmt-cut-make-trim/>.
