Buying a product or a service is not procurement, that is purchasing. “Procurement” is more multifaceted! “Procurement” will assess needs, define requirements, comb the market and onboard vendors against set criteria. “Procurement” solicits for proposals in formal fashion and allows for a fair competitive ethical environment. “Procurement” contracts based on value for money and maintains full accountability and transparency. To deliver goods and services in the right quality from the right source, at the right price to the right destination at the right time in the quantity and in the right way is not purchasing. All that requires a broad range of strategies, which in one word means “procurement”!
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The complexity of apparel Sourcing
Apparel sourcing is not as simple as it may seem due to a variety of factors and complexities involved in the global supply chain. Here are some reasons why apparel sourcing is a complex process:
- Global Supply Chain: The apparel industry typically involves a global supply chain with various stages, including raw material production, fabric manufacturing, garment production, and distribution.
- Supplier Diversity: Apparel brands often work with multiple suppliers for different components of their products. Coordinating and managing relationships with various suppliers, each with its own capabilities and lead times, can add complexity to the sourcing process.
- Quality Control: Ensuring consistent quality across different batches and suppliers is a crucial aspect of apparel sourcing. Quality control measures need to be in place to monitor production processes, materials, and finished products.
- Regulatory Compliance: The apparel industry is subject to various international regulations and standards related to labor practices, environmental impact, and product safety. Brands need to ensure that their suppliers comply with these regulations, which can vary from one region to another.
- Lead Times and Production Cycles: The fashion industry operates on tight timelines, with frequent changes in styles and trends. Managing lead times and production cycles is crucial to ensure that products are delivered to market on time.
- Cost Management: Balancing cost considerations while maintaining quality is a constant challenge. Fluctuations in raw material prices, labor costs, and other factors can impact the overall cost of production.
- Ethical and Sustainable Sourcing: There is an increasing demand for ethical and sustainable sourcing in the apparel industry. Brands need to assess and verify the practices of their suppliers to meet consumer expectations and comply with ethical and sustainability standards.
- Communication and Collaboration Challenges: Effective communication and collaboration are essential in a global supply chain. Differences in time zones, languages, and cultural practices can create challenges in coordinating activities among different stakeholders.
- Geopolitical Risks: Political instability, trade disputes, and other geopolitical factors can impact the reliability and cost of sourcing from certain regions. Brands need to navigate these risks to maintain a stable supply chain.
- Market Volatility: The apparel industry is susceptible to changes in consumer preferences and economic conditions. Quick adjustments may be needed to respond to market trends, and this requires agility in the sourcing process.
In summary, the complexity of apparel sourcing arises from the global nature of the industry, the need for quality control, compliance with regulations, the fast-paced and dynamic nature of fashion, and the multitude of factors that can affect the supply chain. Successful apparel sourcing requires strategic planning, effective communication, and continuous monitoring of various factors throughout the supply chain.