Outsourcing & Off Shore Strategy - Clothing Line Business

Outsourcing & Off Shore Strategy - Clothing Line Business

Outsourcing & Off Shore Strategy - Clothing Line Business

Introduction

Modern markets inquire for constructing architectures able to respond very rapidly to the variations in amount, blend and value of made goods.

Present scenario in the textile and clothing industries shows a double essence in developed and developing countries: in the former high-tech, automated and informative processes are involved, in the latter, low-tech and labor-intensive operations take place (Danner, Mundel, 1998).

In this context, the reliance on third parties undertakings, carried out in less developed nations, is widespread perform in order to decrease work costs, but often comprises a difficulty for the firms functioning today in the clothing part in developed nations owing to bigger lead times and value variability they introduce. These companies may thus resort, at smallest for some parts of the constructing method, to high productivity resources, organized in internal stores, in alignment to decrease the time to market making themselves partially unaligned from third parties, therefore implementing a partial re-in locating (i.e. the in-house execution of before outsourced procedures) of constructing activities. This is especially important for apparel industry, even in the casual clothing sector, owing to the very strong seasonality effects of changes in fashion (Motwani, 2003).

Analysis of textile part industry

A commonly accepted theory explaining the evolution of global capitalist economy is the New International Division of Labor (NIDL) (Loo, 2002). According to this theory, manufacturers are occassionally moved from one geographical locality to another as industrialists relentlessly search for countries in which lower salaries apply. Textile and clothing industries, given their labor-intensive nature, follow this theory , and it can be seen a global shift of the world's textile and clothing industries towards the less developed economies, including Mainland China, Thailand, Indonesia and the Caribbean states.

According to the classification of the countries exporting clothing, China results the first exporter, with 16.2 percent, but Italy (with 7.1 percent) and US (with 4.4 percent) closely follow, ranking the second and, respectively, the fourth place. Among the 15 premier apparel exporters, eight are high-income economies and they altogether account for over one-third (36.8 per hundred) of the world's clothing exports. In comparison, low-income countries only assist 20.1 percent.

Considering the high work content in apparel commerce, this circumstance may emerge very strange. Another facet has to be taken into account in order to interpret this position: while in the less-developed nations low-tech and labor-intensive commerce can be discovered in the textile and apparel manufacturing, in output context of developed countries introduction of automation and data expertise is increasingly taking place in many output stages. Therefore, in the developed countries, extremely dynamic and innovative textile and clothing firms employing the latest technologies and well-paid professionals have emerged and concentrated in specialized districts (Crocitto, Youssef, 2003).

Proposed methodology

Often industrial firms make in sourcing/outsourcing decisions without fully understanding all related implication or focusing only on the short term cost/price dimension of the ...