In our previous blog on “Why its time for you to consider Garment Outsourcing?”, https://www.positex.in/blog/why-its-time-for-you-to-consider-garment-outsourcing/ , we had talked about the rising importance and challenges associated with Garment Outsourcing.
Across the various models of Garment sourcing, it has been seen that the garment factories have their Core Competency in garment manufacturing and serve as the Tier 1 for the brands. Being specialists in their category, they have a good understanding of the fabrics as well, but as the business complexity is rising, and expectations from the Brands are growing, a class of Fabric and other Raw material suppliers is booming who understand the needs of the industry. Earlier the entire responsibility for executing the garment order after getting the tech pack used to be on the garment factory, in which even if a single element would fail, the entire order went into jeopardy. So the Brands Sourcing Teams are now working as the backbone in coordinating and controlling the entire supply chain, so that each vendor can focus on their own work, and improve the overall performance.
In producing a garment, the Fabric constitutes to be the most important input in terms of cost, quality and lead time. It is one of the biggest factors in executing the garment order as required.
With the growth of the Organised Apparel Industry, the structure of the Industry has become wherein there are a few National/Regional Brands, supported by many Garment factories(T-1), and a few specialised Fabric suppliers(T-2).
This contrast is seen considering the few number of Fabric Mills, compared to the many Garment factories in the industry. So by having a control on the few Fabric Suppliers, the brands Sourcing Team is able to ensure that all the garment factories working for them, get assured fabric supplies. One of the biggest strengths that the big Global brands have, is the tight control that their Sourcing Team has on the entire supply chain, achieving Cost reductions and eliminating chances for delayed deliveries, quality rejections at the same time.
The below 8 reasons help to understand why the Garment industry is increasingly working on Fabric Nomination model :
- Price negotiation of fabric – As brands look at the entire cost breakup of a garment, and fabric is the major cost component, brands are directly negotiating the bulk rates with the fabric suppliers, to get the best deals.
- Setting guidelines and expectations – Alignment of T1 and T2 on the quality , delivery time , inspection, testing parameters, compliance, etc. as per the Brands expectations ensures smooth functioning at each stage.
- Strong Sourcing Team – Brands are better equipped with people and systems, than their garment vendors to control the supply chain. They are able to track the performance of all the vendors, and finally achieve the best results.
- Design inputs – By providing access of the best Fabric suppliers to the design teams, the brands get direct access to the latest trends and developments. Also it helps reduce the Design to Development time. Most brands arrange Mill weeks, to showcase the latest developments by their Fabric vendors(T-2) to the design and product teams every season.
- Control on the fabric supplies – One of the biggest reasons for garment delivery delay is, delay in fabric supply. So by having a better control on the Fabric vendors, the chances of getting garment on time is highest. The Sourcing team, has complete knowledge of the fabric supply, so can plan its productions and deliveries, without being misled by the garment factory.
- Swifter Approvals – Direct reporting of fabric supplier to the brand for any Quality, Lab-Dip, Development, Delivery, Testing related approvals, reduces the delay caused at every step. So there are no last minute surprises, and once fabric FOB sample is approved by the brand, the garment factory can confidently proceed with its production.
- Reduced Garment Lead Time – By working closely with the nominated Fabric suppliers, the brand can control working with many of its garment vendors at the same time. Normally the Fabric lead time is 45-75 days, and creates a bottleneck for productions. Sometimes Brands also take time in closing the garment costings with factories, so many brands place their fabric orders based on projections/ order confirmations to the fabric vendors, so that the garment factory can get the fabric sooner.
- Consistent Quality – For Brands having bulk quantities, and working with multiple vendors for same styles, it is seen that if vendors source their fabrics from different sources, there is variation in quality and colour at the store level. So by nominating the entire lot of fabric from a single Fabric supplier, all the garment factories get the same quality of fabric, ensuring consistent quality across the production.
Certainly the process of Fabric nomination requires more involvement and follow up by the Brands sourcing team, but today the choice is between Convenience Vs. Confidence in the Supply Chain. To be able to deliver Quality and Quantity on Time, Every Time to the market, the brands are moving towards increasing their control on the supply chains, in which Fabric nomination shall play a key role.
We at Positex have been striving to get you the best in Fabrics & Fashion, since our inception in 2005, as Pashupati Overseas LLP. Specialising in the field of Fabrics for Sportswear, Jackets and Outdoor wear we have been working with most Garment Brands and their Garment Manufacturers in the Indian market.
With our commitment to deliver “Quality and Quantity, On-Time, Everytime”, we have been the preferred supplier in the industry. As a nominated fabric supplier for brands like Adidas, Aditya Birla Group, Arvind Brands, Numero Uno, Jack & Jones, etc., we are responsible towards the Brand as well as its Garment vendors, in achieving their goals.
Serving you with an experienced & committed team, we are prepared to cater to your requirements, through our main office at New Delhi, and associate offices at Bengaluru, Mumbai & Ludhiana. For sourcing and inspections we have a Liaison office in China as well.