Since the time the focus of Brands has shifted on Marketing and Brand building, rather than on Inhouse Manufacturing, the industry started to work on the Outsourcing model. To create a balance between the 3 important aspects of Cost, Quality and Lead Time, the decision of outsourcing has become more strategic.
With Garment factories having their Core competence in productions, they are able to control the Costs of making. Secondly with their focus on a particular category of garment they are able to provide Better Quality and workmanship having the required infrastructure and latest equipment for the category. And finally through their efficiencies they can offer shorter Lead time as well.
Brands having Global operations like Inditex(Zara, Bershka,etc.), H&M, Nike, Adidas, Primark, etc., do not have any manufacturing facilities, which has helped them to grow their brand presence and operations more rapidly. But at the same time, to have better control on the Cost, Quality and Lead time, the role and responsibility of their Sourcing Teams has grown tremendously. The Sourcing team has become the backbone of the entire supply chain, to coordinate and control the flow of all raw materials including Fabrics, Accessories, Packing material, etc., and then the Production at the factory shop floor level upto final Quality Check and shipment is done.
This trend has caught up well in the Indian market as well, where we can see companies following a mix of the following sourcing models : Completely Inhouse, Partial Inhouse(product or operations wise), Completely Controlled Outsourcing, Partnerships, and Buyer-Supplier sourcing. We can see examples like Reliance Trends, Pantaloons, Spykar, Adidas India, Benetton, etc. which do not have any manufacturing operations, against Madura Garments, Numero Uno, Crimsoune Club, etc. which use the Partial Inhouse model to manufacture their strategic products inhouse and rest outsourced. Today there are very few names to think of which have 100% manufacturing inhouse, which shows the rising importance of production outsourcing.
But as the model of outsourcing is fairly new to the industry, gaining momentum only in the last 4-5 years, the Supply chain and vendors are still understanding the nuances of the trade, and preparing themselves for it. In India, as still most of the garment industry is semi organised-unorganised, Brands are finding it challenging to get the Right Quality at the Right Time, even though they are getting better Cost through outsourcing.
Due to this the Completely Controlled Outsourcing and Partnership models are more preferred by the Brands, compared to the Buyer-Seller relationship, wherein the Brand is completely blinded of what is happening in the garment factory, till the time of the final shipment. Learning from the International brands, the Sourcing teams are working on Nomination models, wherein all the suppliers in the value chain are specialists in their fields, and they all report directly to the brand for quality, cost, testing, developments, delivery time approvals.
The Brands sourcing team controls the Garment Factories(referred to as Tier-1), and the Raw Material suppliers(referred to as Tier-2), to ensure that the garment factory gets the raw materials in time for its productions. By aligning the entire supply chain to the philosophy and requirements of the brand, the brand is able to provide the best offering to its customers.
The Brands have the flexibility to work with the best suppliers in the industry, and build relationships with vendors who are working as partners. Commitments on Quality and Time have become very important, to ensure that the brands do not loose any shelf space in the intensely competitive market. With the rising volumes in the Indian apparel retail industry, brands are exploring opportunities to source ready made garments from countries like China, Vietnam, Bangladesh, Sri Lanka as well, in cases they are not getting their requirements fulfilled within the country.
The entire practice is basically to get the right product at the right price on the right time and ensure business revenue to everyone, by focussing on the Core Competencies. This will create healthy and lasting synergies in the industry, and help to propel its growth in the coming years.
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, 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.