UNIT 1 SOURCING FOR APPAREL Sourcing for Apparel

Structure
1.0 Objectives
1.1 Introduction
1.2 Sourcing Strategy
1.3 Types of Sourcing
1.4 Process of Sourcing
1.5 Types of Suppliers
1.6 Factors Affecting Sourcing of Fabric and Trims
1.7 Let Us Sum Up
1.8 Keywords
1.9 References and Suggested Readings
1.10 Check Your Progress – Possible Answers

1.0 OBJECTIVES
Sourcing refers to the procurement practices to find, evaluate, and engage
suppliers to acquire goods and services. Sourcing of raw materials such as
fabrics is one of the critical functions of a garment/apparel merchandiser. It is
the process of determining the most effective vendor of the required material
providing specified quality at the lowest cost. The present Unit discusses
sourcing of materials in detail including types of sourcing, process of
sourcing, factors affecting sourcing, etc. After completing this Unit you will
be able to learn about the following:
• Explain the buying decisions for sourcing
• Identify the relationship of a critical business function to material and
sourcing
• Discuss purchase criteria for sourcing materials
• Explain the formulation of sourcing strategy and its implementation

1.1 INTRODUCTION
Sourcing determines how and where the material will be purchased to
manufacture a garment. In other words, sourcing is simply a process of
identifying and selecting suppliers. It also refers to finding, evaluating, and
engaging the suppliers aimed at purchasing the desired items at a reasonable
cost. Generally, the sourcing process involves preparing a database for
sourcing, selection of suppliers, price negotiation with suppliers, planning
and purchasing.

The world has become an open market for sourcing, buying, and selling any
material required for the apparel industry. The merchandiser must understand
the complexities of domestic and international sourcing. Sourcing is the 9
Sourcing and Buying primary responsibility of the merchandiser that can now be done directly and
indirectly. Direct sourcing would require the merchandiser and sourcing
department to directly deal with the identified suppliers and purchase
material from them. Or else they can also approach a sourcing agent to
facilitate the sourcing process. They procure all the materials from different
suppliers after analyzing their product quality. The merchandising and
sourcing department coordinate sourcing and looks after all the material
delivered at the scheduled time and cost. Good sourcing executivs are
expected to know materials, quality assurance/standards, costing, and import
legislation/restrictions on certain materials (in the case of international
suppliers). They must understand international business policies and legal
procedures for material sourcing. They need to identify a domestic and global
supplier base by studying and glancing the catalogs, magazines, trade
journals, and websites. Sometimes, relevant trade organizations and relative
government bodies give lists of suppliers to ease and hasten the supply
process.
A supplier is considered for selection based on price, quality standards,
capability to complete orders, and timely delivery. Sourcing decisions can
build and smash the image of an apparel industry; therefore right sourcing
decision provides efficiency and flexibility to meet the supply chain needs
within the time frame.

1.2 SOURCING STRATEGY

Garment businesses are currently juggling the sourcing strategy to target their
destination markets. Apparel sourcing is evolving daily with changing trade
structures and tax regulations of several countries. Hence, it is essential to
know how to make strategies for sourcing.
Sourcing is a subsection of procurement that deals with locating an
organization's goods and services in the right market. Strategic sourcing aims
to improve quality and service while reducing the cost of purchased
materials, products, and services. In strategic sourcing, the first step is to
identify the material, product, and service specifications. The merchandiser
analyzes the expenses of raw materials and assesses sourcing organizations
according to their services.

Apparel sourcing is also crossing borders to find suitable destinations for

desired products globally. Apparel brands and retailers prioritize sourcing to
get more exposure for their products and maximize their profits, while
choosing sourcing destinations, they consider the following points. :
• It should be cost-effective
• Raw-material prices should be according to the buyer
• Quality of material must be good
• Location of the suppliers must be approachable
• Trade regulations as per the country under consideration
• Advance technologies should be adopted by the suppliers
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 1.3 TYPES OF SOURCING Sourcing for Apparel

Material Sourcing
The raw material of the garment, such as fabric and trims, can be sourced
separately from different suppliers.
1. Fabric Sourcing: The fabric sourcing department mainly manages
fabric sourcing under the merchandising department. It is occupied with
two types of bundles of fabric, i.e., checked fabric bundle and unchecked
fabric bundle.
• Checked Fabric Bundle: The fabric undergoes the inspection of
quality, colour, measurement, fiber specification, etc. This process
minimizes rejection of cut panels due to fabric defects.
• Unchecked Fabric Bundle: This bundle is not checked for a few
reasons. The unchecked fabric can be used in the future for research
and sample development.
Apparel manufacturing companies source fabrics from mills, knitting plants,
and power loom mills. The fabric is manufactured for big orders. Small-scale
industries produce fabric from traders instead of approaching mills.
Everything in the sourcing decision depends upon the buyer's requirements.
The process flow chart is given below for fabric sourcing:
Fabric Sourcing

Sampling Bulk Production

Technical verification, Order received from a

vendor selection merchant

Order placement for sample Technical analysis of fabric

development

If Yes If No Rate quotation for the

suppliers
Sample submission Corrections in sample
to the buyer Supplier selection

Resubmission Purchase order proposal

Sampling yardage
review and confirmation to
and lab testing
be sent to the supplier

Final approval from the buyer Material received an audit

for the quality and quantity

Bulk production
Final bulk production of
garment
Figure 1.1 Process Flow Chart For Fabric Sourcing
11
Sourcing and Buying Fabric sourcing in apparel industry is done for sampling purpose as well as
for mass production. At the initial stage, fabric is purchased for sampling
only. The prepared sample is shown to the buyer and after getting approval;
the merchandiser places orders for fabric for mass production of the garment.
Rate quotations from the suppliers are recied and supplier has been finalized
for placing purchase order for materials. When the company receives the
material at the right time, inspection and auditing occur for the fabric's
quality, quantity, and colour. Finally, the mass production of garments begins
in the industry.
2. Sourcing of Trims: After sourcing the fabric, merchandiser and sourcing
department focus on the procurement of trims. Trims are used in the
sewing section while stitching the garment. A variety of trims like zippers,
buttons, lining, cords, labels, patches, stickers, etc., are used in the
garments. Trims and accessories suppliers also play an integral part in the
apparel industry. Most of the trims are readily available locally. Special
trims may be imported from the suppliers.

Different materials are sourced from various sourcing destinations including

the domestic and international market. Let’s discuss different types of
sourcing destinations.

Types of sourcing:
According to the destination, two types of sourcing are discussed in the
apparel supply chain.

1. In-House Sourcing: It refers to routine procurement and supply of

required materials from within a company or by its subsidiary textile
mill. For example, some apparel production industries have textile mills
that can produce fabric according to their requirements and use it in-
house instead of sourcing it from outside.

2. Outsourcing: Some companies usually outsource the material and

services to tap into their market. It includes contracting with external
organizations to provide supplies and services. Outsourcing can be done
from different sources, such as:

1. Local Manufacturers: Fabric manufactured is readily available, within

the local infrastructure saves a lot of time and cost incurred on the supply
chain. Most of the small apparel industries procure materials from local
manufacturers.

2. Traditional Export Houses: The local fabric can also be exported to

garment manufacturing countries. Sometimes an apparel industry does
source material from conventional exporters. They maintain high quality
standards for the material. Therefore, the sourcing department can select
them according to the material availability.

3. International Sourcing: Fabric parameters that meet the demands of the

buyer which cannot be procured by domestic market need to be obtained
from international markets. Furthermore, special or innovative fabric
materials can also be procured from an international manufacturer or
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 supplier. For an example, this could be cut resistant and fire resistant Sourcing for Apparel
fabrics like Nomex and Kevlar which is used for sports, uniforms etc.
All the required parameters and images are attached through the mail and
can send suppliers anywhere globally. Sometimes physical fabric
swatches are also sent to the supplier if needed. If all the parameters
match the buyer's requirement, both parties go for the price negotiation.
After the settlement, both parties agree on price and quality, and then the
merchandiser place the orders for the material. For outsourcing,
merchandisers should contact a reliable and well-reputed supplier. While
focusing on the supplier's product quality and price, it is important to
check their reputation as well.

4. Off-shoring: It is a sort of exchange. Raw material i.e., yarns or fiber is

exported first, and then re-imported as a fabric to fulfill the demand.

Often, locally manufactured fabric is utilized to meet the company's demand.

If, the manufacturing cost is too high or adequate infrastructure is
unavailable, then off-shoring or global manufacturing is opted. The export
order processing is the responsibility of the production merchandiser. The
merchandiser is well aware of the buyer's requirements regarding fabric and
the lead time of the whole process. Therefore, sourcing decisions are critical
to the success of every garment manufacturing industry.

1.4 PROCESS OF SOURCING

While identifying the supplier for the material, the merchandiser and
marketing department has to collaborate with the buyer. They are the ones
who initially raised the need for the purchase and are transacting with the
selected supplier. There are some steps for sourcing as discussed below:
1. Analyze the need for sourcing: To understand and analyze the need for
sourcing, merchandisers ask their team and customers as many questions
as possible to identify their requirements. As a purchaser, the
merchandiser has to recognize the buyer’s needs and translate their
specifications to the supplier for providing material. The process of
developing specification for the requirement includes the following four
steps;
1 Assess customer needs
2 Assess what the market has to offer
3 Write down required and available material specifications
4 Define winning criteria

2. Conduct market research: The merchandising team conducts market

research and gathers information about the availability of the material in
the market. They collect all the data and information about materials
across the countries. Then compare them to identify the most cost
effective and profitable source.

3. Evaluate the supplier's market: The merchandiser's team evaluates

suppliers before finalizing. They consider their financial statements,
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Sourcing and Buying credit reports, and references while selecting suppliers. After identifying
the suppliers, the buyer has to call for quotations from suppliers and
formally approach them via digital plateform “Request for Information"
on their websites or the portals in which they are listed. It is the formal
process of data collection about the supplier to analyze the capacities of
the suppliers.

4. Negotiation with suppliers: Negotiation is essential to creating

maximum value on a minimal budget. At the negotiation stage, the buyer
analyzes the offers and selects the most promising suppliers to negotiate
with. The merchandiser team sits with them to discuss the strategy and
negotiate for the best deal. They discuss pricing structure, the scope of
work, time of delivery, and terms & conditions.
5. Contract discussion: Finally, the merchandiser prepares a formal
contract with the supplier. The agreement mentions all finalized details
about the pricing structure, the scope of work, delivery time, payment
system, recovery of losses, and conditions for calling off the deal.

At last, the merchandising and marketing department assigns Bill-of-Material

(BOM) to the cost management team and purchasing department for further
processing. The concerned person will start managing in-house pricing for
costing. While doing in-house pricing, the material cost is added with the 2%
tax, 14% exercise duty, and 10% transportation charges with a 5% margin.
This breakup is given to the merchandiser by the purchasing department for
costing purposes. The merchandisers make a cost sheet and the buyer
confirms the order for manufacturing; then the merchandiser determines the
exact quantity of raw material and trims required to complete the order.
Merchandiser gives all requirements to the purchasing department as a sheet
format, which is known as purchase requisition. This sheet is followed in the
industry for all the orders irrespective of the buyer. Once the purchasing
department receives this format, than purchase order is sent to the concern
department.

1.5 TYPE OF SUPPLIERS

Sometimes the suppliers are recommended by the manufacturing company or
the buyers. Sometimes manufacturers have to identify the suppliers. There
are two types of supplier categories, namely, nominated supplier and non-
nominated supplier.
1. Nominated Suppliers: Nominated suppliers are typical in the garment
industry. The buyers enter the nomination of a supplier to control the
supply chain quality. The buyer nominated suppliers delivers good
quality raw materials without any defects. The main aim of the selected
supplier is quality assurance of the material and saving time for
procurement because the suppliers already have experience in this area.
2. Non-Nominated Supplier: Sometimes buyers only provide the
specification of raw materials and garment manufacturers do the material
sourcing. Garment manufacturers identify their suppliers for the raw
14 material. Non-nominated suppliers have to sustain their business; hence
 they try to provide the best material at the best price to garment Sourcing for Apparel
manufacturers. There is scope for garment manufacturers to explore
innovative products and competitive pricing with their suppliers.

Types of Market Suppliers

The market has three types of suppliers (manufacturers, wholesalers, and
retailers). Depending on the quantum of the order, the apparel merchandiser
approaches any of the following suppliers.
A. Manufacturer: In case of big orders and to meet the garments buyer's
order criterion, merchandisers approach manufacturing mills to
manufacture fabric with detailed specific requirement to source the order
directly from the manufacturer.
B. Wholesaler: The wholesaler usually has a tie with fabric and trim
manufacturers. They usually keep a stock of minimum quantity of
material for their consumers. The minimum amount of stock is 500
meters and above. They accept the order for only this quantity or above.
If this meets the garments merchandiser's order requirement, the
merchandiser can source the order from the wholesaler.
C. Retailer: The retailer plays an important role as the supplier of trims and
fabrics. The retailer generally does not have a benchmark of minimums
to accept the order. The apparel merchandiser can buy 1 meter to 100
meters or even more as per the design or color. The requirements of the
merchandiser can be low for various reasons, such as-
• The buyer's requirement for the order quantity is small; the garment
merchandiser may accept such a small order to please the buyer,
who continuously feeds them with orders throughout the year.
• A small order quantity may be due to the requirement being only for
a part of the garment, like a yoke, collar, etc.

Check Your Progress I

Note: Use the space provided for your answer

1) What are the supplier selection criteria used by merchandisers?

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2) Explain different types of suppliers.

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Sourcing and Buying
1.6 FACTORS AFFECTING SOURCING OF
FABRIC AND TRIMS
Factors affecting material sourcing are discussed as below:
1. Lead time: Material sourcing is a very time-consuming process that
includes many approvals for the quality of material, such as lab-dip
approvals, trim and artwork approval, and fabric packaging approval.
Fabric sourcing takes a lead time of 30-60 days, according to the
requirement of the fabric type. If buyers require a specific type of dyed
fabric type, it may take more lead time to process the fabric. The
merchandiser needs to fix the supplier based on the fabric type, specified
colour code, and delivery time keeping in mind the buffer time required
to complete the export order. If the fabric is outsourced globally, then the
time required for transportation is added to the lead time. Same
consideration goes for the sourcing of trims.
2. Logistics: One of the main factors which affect fabric sourcing
drastically is logistics. Owing to technological advancements, there are
several national and international acclaimed logistic companies that offer
pickup and delivery services at a large scale. Several aspects that need
consideration while finalizing the order transportation and delivery
partner includes the time required for transportation, secure infrastructure
required for material loading, unloading & storage, and the overall cost.
The time required to transport the material is crucial to accurately
achieve lead time of procurement. The absence of adequate infrastructure
may significantly lead to delays or cause unwanted losses during
material procurement. The cost of transportation affects final price of the
end product; hence merchandisers should consider reasonable logistics
partner while placing the order with a supplier.
3. Quality parameters: The demand for high-quality at a low cost drives
more companies to outsource manufacturing overseas. The ability to
produce quality fabric and trim, consistently depends on several factors.
Two main factors are the advance technology and skill of the workforce
to make a wide range of fabrics and trims. Another critical factor is the
accuracy of written communications and instructions from the garment
manufacturer/apparel merchandiser. If a company has these three things
fixed, they will never be short of orders.
4. Sourcing costs: The sourcing decisions are taken based on the cost of
manufacturing. Nowadays, garment exporters make strategic bonding
with vendors. The buyers also make bonding with vendors and
recommend them for sourcing, this is called nominated vendors. The
sourcing cost depends upon the following factors such as:
• Manufacturing cost: The sourcing cost is directly related to the
manufacturing cost of the material. The manufacturing cost of
materials increases due to significant variation in the cost of raw
material for e.g. periodical change in the prices of petroleum
products commonly employed in manufacturing synthetic fabrics
16
 and trims, maintenance of infrastructure/machinery, finishing Sourcing for Apparel
auxiliaries and skill of workers.

• Cost of logistics/transportation: The distance of destination of

sourcing and delivery location add more to logistics and
transportation costs. The greater the distance, the higher would be
the cost.

• Incoterm negotiation (for international sourcing): Incoterms are a

set of global rules which define the responsibilities of sellers and
buyers in the export transaction. When sourcing has been done
globally incoterms negotiations take place, adding more cost in legal
formalities.
The sourcing cost is also optimized while fabric and garment
manufacturing units are under one roof or closer to each other.
Sometimes, suppliers air freight the materials due to delays in
manufacturing which leads to higher freight expenditures.
5. Minimum Order Quantity (MOQ): It is the essential factor that affects
sourcing. Every supplier requires MOQ for the production of fabric and
trims; otherwise, the cost of production increases which affects the cost
of the final product. If a garment exporter places the order of raw
material below MOQ, then generally cost will be more. Hence,
throughout the supply chain, MOQ is maintained to achieve a reasonable
cost of production.

6. Ordering specifications: Garment exporters must give specifications to

the supplier for the accurate raw material. The ordering specifications are
provided below:

Raw material Ordering specification

Fabric • Fabric design (desk loom)
• Fabric swatch (if provided by buyer)
• Lab-dip/colour standard
• GSM (Gauge in case of knitted)
• Yarn count
• Cuttable fabric width
• EPI/PPI (End Per Inch/ Picks Per Inch)
• Fabric finish
• Requirements of dyes and finishing chemicals
• Unit of measurement i.e. meter/ yard for woven
and KG for knitted
• Order quantity
• Shrinkage tolerance
• Fastness properties
Buttons • Raw material i.e. wood, nylon, etc.
• Colour (sample provided by buyer)
• Unit of measurement i.e. inches, cm, mm etc.
• Quality parameters
17
Sourcing and Buying • Button strength
• Colour fastness
• Order Quantity

Zippers • Raw material i.e. metal, nylon

• Colour
• Length
• Type of puller
• Zipper finish
• Fastness properties
• Zipper strength requirements
Thread • Colour i.e. thread run
• Thread specifications i.e. 2 ply, 3 ply
• Fibre type i.e. filament yarn, or staple yarn
• Thread ticket no. (thread count)
• No. of cones
• A meter of thread content on cone i.e. 1000,
5000 meters.
• Finish
• Thread construction
• Fastness properties
• Strength
• Heat sensitivity
Label • Type of label i.e. printed, jacquard
• Design specification of label
• Size specification of label
• Colour combination
• Font type
• Font size
• Line spacing
• Care instructions type
• Fastness properties
• Dimensions of the label
Polybag • Polybag Thickness
• Raw material specification e. polyethylene.
Polypropylene etc.
• Colour
• Dimensions
• Specification of print on polybag
• Type of closure
• Type of dents

18
Cartons • No of plies i.e. 3,7 Sourcing for Apparel

• Raw material
• Dimensions
• GSM of the paper
• Print specification of cartons
• Type of carton
• Dimension tolerance
• Bursting strength
Interlining • Fibre content
• Construction specification i.e. woven/non-
woven
• GSM
• Colour
• Fastness properties
• Fusible /non-fusible
• Shrinkage

General lead time requirement for domestic and overseas sourcing: This
lead time depends upon the quantity and the ideal condition of material to be
sourced. In any emergency, the supplier can also supply the fabric in less
duration.

Check Your Progress II

Fill in the Blanks

1) The developing specification has four steps _______________,
______________, ________________, and ______________________.

2) The time taken to complete the order is known as __________________

3) The supplier nominated by the suppliers is known as ______________

4) BOM stands for _____________

5) MOQ stands for ______________________.

1.7 LET US SUM UP

In this Unit, you have studied the broad parameters of sourcing materials.
Sourcing is one of critical activities of apparel industry that directly impacts
the cost and operations. Sourcing is the process that requires planning to
identify the suppliers to get good quality products and services. Strategic
sourcing aims to improve quality and service while reducing the cost of
materials. The world has become open for sourcing good quality material. As
a buyer, the merchandiser identifies the sourcing destination and translates
consumers’ specifications to them to provide material. According to the
sourcing destination, the apparel supply chain includes two types: in-house
sourcing and outsourcing. Some apparel industries produce the material in-
house and some outsource material from local and global manufacturers.

19
Sourcing and Buying The sourcing process begins with analyzing the sourcing need to contact with
the suppliers. This process includes analysis of the requirements of material,
market research for the availability of material, evaluating suppliers and
finally preparing a formal contract with the suppliers. Identifying and
evaluating the supplier is very important in the sourcing process. The main
purpose to evaluate the supplier is to reduce purchase risk and maximize the
overall value of the purchase. While evaluating the suppliers, merchandisers
considers various factors such as lead time, quality and cost of material, etc.
There are different factors that also affect material sourcing such as lead time,
logistics, quality of material, sourcing cost, MOQ, and order specification.
Leading apparel industries modify their sourcing process to improve
standards throughout the value chain and to fulfill the demands of consumers
within the time.

1.8 KEYWORDS
The apparel industry has its language for sourcing and manufacturing. These
terminologies also help to navigate fabric sourcing like a pro.

Sample Yardage: Sample yardage is the fabric we order when designing and
developing samples. Most fabric suppliers demand a five-yard minimum
order for sample yardage.

Bulk Yardage: Bulk yardage is the fabric ordered after designing,

developing, and approving garments. Bulk yardage refers to the more
significant quantity of fabric yardage bought to manufacture products.

Purchase Order (PO): Purchase order is the legal document that buyer send
to the supplier to authorize the purchase. It indicates type, quantity, quality
and agreed price for product and services.

Sourcing: It is a process of obtaining goods and services from a

manufacturer either from domestic or global market.

Value Chain: A value chain is a set of activities to deliver a valuable product

or service.

1.9 REFERENCES AND SUGGESTED

READINGS
1. Berg, A., & Hedrich, S. (2014). What is next in apparel sourcing?
Retrieved from
http://www.mckinsey.com/media/McKinsey/Industries/Retail/Our%20In
sights/Whats%20next%20in%20apparel%20sourcing/Whats_next_in_ap
parel_sourcing.ashx
2. Berg, A., Berlermann, B., & Hedrich, S. (2013). The global sourcing
map: Balancing cost, compliance, and capacity. Retrieved from
http://www.mckinsey.com/-
/media/mckinsey/dotcom/client_service/retail/articles/the_global_
sourcing_map_balancing_cost_compliance_and_capacity.ashx

20 3. Berg, A., Hedrich, S., Kempf, S., & Tochtermann, T. (2011).

 Bangladesh's ready-made garment landscape: The challenges of growth. Sourcing for Apparel
Retrieved from
https://www.mckinsey.de/files/2011_McKinsey_Bangladesh.pdf

4. Beron, R. (2014), Opportunities and challenges in Asia's apparel and

textile Sector. Apparel Magazine. Retrieved from
http://apparel.edgl.com/news/Opportunities-and-Challenges-in-Asia-s-
Apparel-and-Textile-Sector91123

5. Better Work. (n.d.). Case study: Fire and building safety in the ready-
made garment sector of Bangladesh. Retrieved from
http://www.betterwork.org/global/?p=4321
6. Birnbaum, D. (2005). “Sourcing: A must for clothing in suppliers,”.
International Trade Forum, 3, 5.

7. Brown, P., and Zukerman, A. (2012). Developing leaner product

development and sourcing operations. Apparel Magazine. Retrieved
from http://apparel.edgl.com/news/Developing-Leaner-Product-
Development-and-Sourcing-Operations83887

8. CBI Market Information Database. (2013). Key performance indicators:

Vietnam. Retrieved from http://www.cbi.eu/sites/default/files/files/
VIETNAM.pdf

9. CBI Market Information Database. (2014). Supply chain trends in the

apparel sector. Retrieved from http://www.cbi.eu/search/?cbi_search=
trends+ in+the+apparel+sector&submit=search
10. Choi T.M and Cai, Y.J. (2020). “Impacts of lead time reduction on fabric
sourcing in garment production with yield and environmental
considerations,” Annals of Operations Research, 290, 521–542.

11. Ganesan S., George, M., Jap, S., Palmatier, R.W., Weitz, W. (2009).
Supply chain management and retailer performance: emerging trends,
issues, and implications for research and practice, Journal of Retailing,
85, 84-94.
12. Garment Merchandising by R. Rathinamoorthy and R. Surjit
13. Gereffi, G., and Memedovic, O. (2003). The global apparel value chain:
What prospects for upgrading by developing countries?. Retrieved from
https://www.unido.org/uploads/tx_templavoila/Global_apparel_value_ch
ain.pdf
14. Hong-yan, L. (2010). “Garment Merchandising and Design and
Development [J],” J. Anhui Vocat. Coll. Electron. Inf. Technol., 1
15. https://garmentsmerchandising.com/sourcing-for-garments-
merchandiser-and-its-importance/

16. https://www.fibre2fashion.com/industry-article/8447/9-steps-to-
formulate-right-sourcing-strategy-for-the-textile-and-apparel-industry

17. https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%2
21
Sourcing and Buying 0Insights/Whats%20next%20in%20apparel%20sourcing/Whats_next_in
_apparel_sourcing.pdf
18. Petreca, B., Atkinson, D., Bianchi-Berthouze, N., Furniss, and Barley, S.
(2014). “The future of textiles sourcing: exploring the potential for
digital tools,”.

19. Rivoli, P. (2014). The Travels of a T-shirt in the Global Economy.

Hoboken, NJ: John Wiley and Sons.

20. Rollins, R.P., Porter, K., and Little, D. (2013). Modeling the changing
apparel supply chain. International Journal of Clothing Science and
Technology, 15, 140-156. doi: 10.1108/09556220310470141
21. Rosenau, J. A and Wilson, D. L. (2014). Garment merchandising: The
line starts here. A& Black.

22. Salmon, K. (2013). Reshuffling the global apparel sourcing deck.

Retrieved from http://www.kurtsalmon.com/ uploads/global
%20Sourcing%20Reference%202013%201202%20VF.pdf

23. Shelton, R.K., and Wachter, K. (2005). Effects of global sourcing on

textiles and apparel. Journal of Fashion Marketing and Management, 9,
318-329. doi: 10.1108/13612020510610444

24. Van Tot, B.V. (2014). Textile and apparel industry report. Retrieved
from http://fpts.com.vn/FileStore2/ File/2014/07/01/Textile%20and%20
Apparel%20Industry%20Report%20(latest).pdf
25. Vijayan A., and Jadhav, A. (2015). Fabric sourcing and selection.
Garment Manufacturing Technology, Elsevier, 109–128.

1.10 CHECK YOUR PROGRESS – POSSIBLE

ANSWERS
Check Your Progress I
1. Sourcing strategies are used for sourcing fabric; locally manufactured
fabric is preferred to meet the company's demand. If the manufacturing
cost is too high or adequate infrastructure is unavailable, then off-shoring
or global manufacturing is the prevalent practice for fabric procurement.
Garment export houses need to decide the tactics of sourcing very
carefully. The merchandiser and the fabric sourcing department play a
crucial role in deciding tactics. The export order processing is the
responsibility of the production merchandiser. The merchandiser needs
to be aware of the buyer's requirements regarding fabric and the lead
time of the whole process.

2. There are three types of sourcing done in the apparel supply chain:
1. In-House Sourcing: refers to conducting an activity or operation within
a company and meeting its routine procurement and supply function. For
example, some apparel production industries have their textile mills. So
the material is used in-house instead of relying on outsourcing.
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2. Outsourcing: some companies usually outsource the material and Sourcing for Apparel
services to tap into their market and cut costs.

3. Global Sourcing: is a widespread practice in the apparel industry. The

material is outsourced from the international market.

Check Your Progress II

1. Assess customer needs; assess what the market offers, develop
specifications, and define winning criteria.
2. Lead time
3. Nominated supplier
4. Bill of Material
5. Minimum Order Quantity

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