Is Old Sourcing Still Key to Success in Apparel Industry?

 

Is Old Sourcing Still Key to Success in Apparel Industry?

By definition, sourcing is a process through which something is sourced from another place. The sourcing decision is normally made on the basis of several factors. Although sourcing of anything is not a simple task. That’s why, the concern people always first try to make/develop the product by their own.

If the production of particular product is not cost effective, non-availability of skills, unsatisfactory suppliers or vendors then they have to go for sourcing. There are four factors on the basis of which one can decide whether to make or source the product. And it includes cost, production capability, quality and lead time of the required product.

Cost: In some products, the product cost is not as cheaper as compare to the outsource supplier. It could be due to several factors like cheaper labor availability or cheaper raw material cost due to several suppliers. So, in this particular case, you better decide for sourcing the product instead of in-house production.

Production Capability: Every territory and geographic location has its own characteristics and benefits. For apparel industry examples, some areas have skilled labor of top items (jackets, upper, shirts etc). Whereas, some are good in washing capability due to its good water PH value and labor proficiency. So, in this particular case, you will have to make a decision for product outsourcing.

Quality: Quality is no doubt the foremost requirement of everyone. If you are compromising on product quality due to unskilled labor or usage of sub-standard raw material. And even you could have option to procure the better quality with same cost or paying some pennies extra to them. Then your first choice would be outsource the particular product.

Lead Time: The lead time of is really crucial in every product making process. Some companies have expertise and running regular orders in particular products. Such companies can offer you not only competitive prices of the same product but also give you a short lead time. So, in that particular case, you will definitely choose outsourcing option. In short, if the narrated factors are not met then sourcing decision has to make.

Old Sourcing:

The fashion industry was use to follow the traditional ways of sourcing. In which the main motive is to reduce product cost through selection of cheapest manufacturers. And in order to get cheap manufacturing vendors, you have to look for in less developed countries. This is why, the fashion industry gradually moved from west to Eastern Europe to Asia and Africa.

With the passage of time, the ways of production and processing is changing and improving. The research and development teams are continuously focusing on time high quality product with low cost. In order to reduce the cost, instead of human being, the robots are working in many industries. So, by adding these automation options, one can control his/her day to day increasing labor cost. If this addition is practically implemented then it can affect 231 million manufacturing jobs at risk in almost 50 countries of the world.

Sourcing Automation & Digitization:

Not only this, through technology the sourcing can also be cost effective as well as fast.  The R&D  people also suggested some new ways through which sourcing operation can handle efficiently and even effectively. And as per them, there are two ways which can revolutionize the sourcing world and it include as follows:

Digitization in Sourcing:  

It’s the requirement of every client for more transparency in production and material sourcing. Along with that everyone is demanding for shorter lead-time and increased production. All of this can happen by the help of digitization in sourcing. As per the current market scenario where speedy but customize production trend is getting hot. So, you can’t meet the market trends without digital support. The digital sourcing has positive impact on China which is a big player in textile sector. Since the wages are increasing in China so it’s time to move brand manufacturing outside China. In this particular matter, digitization will help the Chinese manufacturers to streamline its product cost.

In-fact, sourcing digitization will empower the client to speak more effectively. As per the experts, there will be a time when people place customize apparel orders through their mobiles. These order will digitally sent to the manufacturers for completing the desired job.  So, the elimination in barriers through digitization will definitely help the manufacturers to speed-up their productions. And this can shorten the lead time and allow end users to communicate their requirement directly. When we look this concept in a broader way then a storekeeper can place the order directly to manufacturer.  So, he will place the order as per the current requirements of the local market.

Li&Fung is currently investing heavily in digitization concept. And their main motive is to streamline their operations, transparency in production and focusing on digital-design to avoid prototype cost. The famous brands Zara, H&M and Macy’s are also focusing on same line. What they are doing, they are trying to change the whole shopping experience of the customer who visit them. They will try something to the customer and then it will be customized by the help of AI and made nearby.

Automation in Sourcing:

Automation in sourcing means you replace human labor with robots. This approach is vice versa to the traditional sourcing where everyone prefer remote manufacturers due to low cost. But in this approach, your manufacturing is handling by robots so you try to build manufacturing set up closer to end user markets. Moreover, you have a close interaction with the end user so the product innovation or customization is possible. Along with that you can easily enhance your production speed which will shorten the lead time of high fashion apparels. Furthermore, changing in geographical location can also eliminate the huge cost and hassle of long-distance transportation/duties. In-future, if this concept runs well then there will be no inventory at all as all products are made on-request.

There is no doubt that most of the people believed that in future automation would be the major driver in sourcing decision. And this thing will happen in next few years when sourcing people prefer automation instead of labor cost. Its fact, by implementing automation, there is chance the number of people will lose their jobs. But on the other hand, the new jobs are also created with better remunerations. And these new jobs would be a bit tech oriented like data analyst, engineers, technician etc. By adopting automation, factories have even a better chance to grow. So, they could also adjust the surplus staff to other vacant posts (after some training).

Conclusion:

There are some people who don’t believe on automation and digitization approach. As per them, the apparel industry is not like other industries where production steps are fixed.  As every product production steps are different from past products due to change in fashion trends (which are already a more volatile thing of current phase). So, you can’t replace skilled workers with robots. On the other hand, some believe that digitization accompanied with automation can be practical and beneficial. But it’s not homogeneous size which fits for all. As it would be more practical for some brands and may be impractical for few of them.

Digitization and automation in sourcing is no doubt a revolutionary concept for fashion players. And there are so many brands which are transforming their processes to take maximum benefits from this concept. Through automation, we can’t say this thing that mass production will be shifted in  West in next decade. But you will see many players who will return and collect the benefits of this approach.

Why Lean Manufacturing is Essential for Apparel Industry

Lean Manufacturing

The Lean Manufacturing is not a new word for us. Being a textile professional, every one of us has direct or indirect relation with textile manufacturing. The lean manufacturing is basically an operational strategy which supports the production from all aspects. By following its unique techniques and methods, the manufacturer can get an optimal production without any waste. So, in simple words, we can say that lean is a manufacturing without waste. The lean manufacturing concept was derived from Toyota production system which basic motive was to increase the value-added work by minimizing waste and reducing incidental work. The lean manufacturing basic concept is to put half efforts of the labor, half of the manufacturing space, half of the tools investment and the engineering hours for developing a new product in a half time.

Lean Manufacturing Concept:

As I described earlier that lean manufacturing philosophy is mostly derived from Toyota production system. With the help of lean manufacturing, a small automobile company named Toyota could reduce its waste and improve overall customer-value. The steady growth of Toyota from small company to globally renowned is an undoubted success of this system. The emphasis of lean manufacturing is utilizing fewer resources to produce the value added product.

Lean Manufacturing Vs Conventional Production System:

There is no doubt that lean manufacturing has totally changed the concept of the production system. As its techniques are conceptually different from the conventional system.  Although there are so many points which can differentiate both systems yet I have selected some points to understand the same in a better way:

Lean Manufacturing Vs Conventional Production System:

There is no doubt that lean manufacturing has totally changed the concept of the production system. As its techniques are conceptually different from the conventional manufacturing system.  Although there are so many points which can differentiate both systems yet I have selected some points to understand the same in a better way:

Conventional Manufacturing

Lean Manufacturing

 

The day to day production problems are normally view or treat as problems in conventional system.

In lean manufacturing, problems are normally view as opportunities for future improvement. By the help of which, there is a better chance to enhance new or value added features into the current product.
In traditional production system, the production is normally driving by sales forecast team or people. In lean system, it’s also one of the main motive of the production team to avoid surplus stock. So, this is why, the production is only driving by customer’s demand (like JIT system).
Work in progress (WIP) is a normal thing or part of production operation in conventional production system. Whereas in lean production system, the WIP is symbol that the process is requiring some improvements. And it is also considers as waste which need to improve on priority basis.
The top or in some cases tactical management level is authorize to change the process of production. And they normally don’t bother to involve operational staff in decision making process. Everyone is looking for the ways to improve the process/system. So, anyone from the production team can come up with suggestion to improve the product value in lean system.
In conventional production process, the standard work procedures only define in papers. But there is no any practical implications exist on the production floor. In lean manufacturing, everyone is normally following the standard procedure which describes in SOP. And it keeps following until or unless new or an improve version introduces or implements.
This system focuses more on the people’s training. And it totally relies on the people not to make mistakes. On the other hand, the lean manufacturing focuses on the system improvements. Once the system improves then it prevents people not to commit any mistake in day to day production matters.
In traditional or conventional production system, if the production process is working smoothly. Then no one bothers to intercept it for further improvements and things are running on same pattern years to years. In this way of production, if experts feel that with some necessary changes, they can improve the production system. Then they don’t wait for any happening/incident. They simply intercept the smooth system and implement the necessary changes to get a better production with quality.
In conventional production system, the product design lasts for a long period of time. In lean manufacturing, there research and development work is going on continues basis. This is why the product design and shape is changing by the passage of time.
In traditional production system, the quality department is built separately and they are responsible for the product quality parameters. The operational worker are note responsible for it. In this advance manufacturing system, all the workers are responsible for the quality of the product. The TQM and JIT systems are best examples of this.

 Some Other Factors:

The above comparison study is not over yet here.  As there are so many other benefits which a company can enjoy while adopting the lean manufacturing system. Even you can eliminate the following deadly waste blunders which you commit while following the conventional manufacturing system. The lean system identified the same as follows:

Some Other Factors:

The above comparison study is not over yet. As there are so other benefits which a company can enjoy while adopting the lean manufacturing system. Even you can eliminate the following deadly waste blunders which you commit while following the conventional manufacturing system. The lean system identified the same as follows:

  • Defects
  • Extra Processing cost
  • Transportation
  • Motion
  • Waiting
  • Over Production (Inventory)

Before the lean system, the defects or goods rejection percentage is uncontrollable. And due to this, the company has to produce extra (which causes extra processing & over production) to meet the exact order quantity. And sometime, this extra production drags the company towards extra cost and transportation for procurement of extra material for excessive goods. In short, a bad system pulls the financial cost of the produced product on break even or sometime even on negative side.

Lean Production in Apparel Industry:

Although the lean manufacturing concept was initiated by the Toyota motors yet it doesn’t fix for automobile industry only. This system has too much flexibility and can easily adopt into other manufacturing industries like apparel industry. By adopting this system, one can not only reduce its cost but also increase its turnover systematically. Its state-of-the-art system can continuously eliminate the non value-added activities which lead the company towards ultimate process cost saving.  In today’s competitive apparel market, where every upcoming order is requiring more competitive or low price.

So, it’s a normal practice of every manufacturer to revisit its product material sourcing cost and other factory overheads. So for this, the manufacturer has to cut down its material cost from scratch. After cutting the material cost, the next step is to get best competitive cost of its in house production. And for this, they have to check each and every factor which boosts the production cost surprisingly. And there is no doubt in it that rejection rate plays a vital role in the product cost. It can drag the company from profit to loss and vice versa. If a company controls this factor by adopting such method which is not only cost effective but production-friendly too. Then, the chances are really bright that the company can not only easily compete the market. But they can even earn better than previously.

Lean Manufacturing Implementation:

The lean manufacturing system is no doubt an ultimate solution to get the value-added product with minimum cost. This is why, the strength of textile manufacturing concern is increasing by every passing day. If you are closely observe the numbers of lean manufacturing oriented units in textile industry. Then you would realize that thousands of textile units are already adopting its techniques and methods. And now they are enjoying its benefits in terms of productivity and savings.

How Jeans Industry can be Sustainable through Technology

How Jeans Industry can be Sustainable through Technology

The denim jeans industry is considered as one the most polluting industry of the world especially in terms of water and chemical. The production and washing of one pair denim jeans consumes over 900 gallons of water. It is estimated that almost five billion pairs of jeans are currently produced in every year. And for the production of this, almost 420 million gallons of water is consumed. Moreover, 900,000 tons of chemicals are used in different washing and finishing processes. The water which is used in the manufacturing processes, get contaminated and this polluted water sent back to our rivers, lakes and oceans. As per the World Bank estimation, almost 20% of global industrial water pollution comes from the textile and Jeans Industry. In China, the textile industry pumps-out 2.5 billion tons of polluted water every year.

Jeans Industry Efforts Towards Sustainability:

The Global women’s wear industry reached worth nearly $621 billion. Whereas, the global men’s wear industry reached worth nearly $400 billion and children’s wear industry is worth $186 billion. This abnormal increase is also ruining our nature and its resources during dyeing and production.  And due to fast fashion trend, soon it turned as sheer burden on environment in the shape of waste clothes. Keeping in the view the whole scenario, the jeans industry people started working on the substantial changes in production processes. So that they could satisfy their consumer’s fashion lust without damaging the nature. Thanks to the technology people who strived a lot to give us multiple sustainable manufacturing options to the jeans industry.

Jeanolgia Technology:

Currently, there are so many organizations which researched a lot on the conventional way of jeans industry production process. Till-to-date, fortunately, we have multiple options through which we can meet the current fashion trends without damaging our natural resources. Jeanolgia is also one of those who contributed a lot to make this world more sustainable through eco-friendly production processes. For jeans industry, they focused on two factors which we already discussed above i.e. water and chemical consumption. As per the company, their goal is to reduce the pollution upto 50% which is caused by jeans industry. And for this, they have introduced different technologies like G2 ozone and  eFlow nanobubbles technology. By the help of which you can reduce an average 20 litres of water, 05 grams chemical and 01 kw/h energy.

Not only this, their awesome technology named “One Glass One Garment” is a tremendous achievement towards environment sustainalbity. Yes, it’s possible now that you can develop garment by using only one glass of water. No doubt, it’s milestone in a garment production process as you can safe million gallons of water through this technology. This is why, currently 20% of the global jeans industry is using Jeanolgia technology. All the big and famous brands like Abercrombie & Fitch, Levi’s, Diesel, Polo Jeans, Replay, Pepe Jeans, Hilfiger Denim, CK, Jack & Jones, Lee, Edwin Japan and other big retailers like GAP, H & M, Uniqlo and M & S are currently using their technology extensively. Not only this, if we look at the world then their technology is using in 05 continents and specifically in 60 countries. The main countries include United States, Pakistan, Japan, Russia, Bangladesh, Turkey, India, and Vietnam.

Alliance for Responsible Denim:

Alliance for Responsible Denim is an initiative which was started a year ago. And it was launched by the Hogeschool van Amsterdam, House of Denim, Circle Economy and Made-By. The famous International brands G-Star, Mud Jeans, Nudie Jeans with join hands some small but famous denim labels like Kings of Indigo, Kuyichi, Cool Cat, Just Brands and Imps & Elfs are the first brands to join this initiative. Along with that, the leading denim mills named Bossa, Kilim Denim, Orta Anadolu, Tavex and Tejidos Royo as well as 02 yarn mills were also in first movers list.

The main aim of this collaboration was to make jeans industry smarter, cleaner along with sustainable production processes. As per the alliance members, they are looking for the ways that how they can improve the denim finish in a more sustainable way. Secondly, they are collaborating with the mills to develop such recycled fabric which would come-up with the demands of end-users. And last-but-not-least, they are also encouraging brands to use these recycled fabrics for their upcoming collections. Uptill now, this collaboration developed 40 different fabrics with different percentage of recycled fabric varying from 10% -25%. Now they are trying to stimulate brands to use these fabrics into their collection so that they can mutually contribute towards green environment.

Some Closing Lines:

There are so many other techniques and group of people who are striving to save the nature and natural resources. Some are offering products or methods so that processes or final products can be enhanced towards sustainability. And other are supporting from every aspect to those people who are working for better environment. Sustainability is a name of continues efforts and can’t be stopped at any stage. Every day and every moment we need something new or more refine so that we could influence less to green natural environment from man-made chemicals and other products.