Clothing Asset Model: Self Built Or Outsourcing?

A high-end women's brand own factory in China is responsible for about 70% of the production tasks, mainly producing products with high quality requirements and brand characteristics.

With its own factory, on the one hand, it can facilitate the synergy of the production plan execution process, and make quick adjustments to the order of sudden change. On the other hand, the brand manufacturer builds a special flexible production line based on some of its own factories, and is responsible for quick response to the demand for chasing in the quarter.

However, at the same time, the operation of its own factories will bring a lot of initial investment and mid term operation and maintenance costs, which will bring pressure on the company's liquidity.

A public abroad

A highly centralized and integrated supplier echelon.

Orders for global revenue of 70% are contributed by 100 suppliers.

The brand has also formed a set of supplier management systems that meet their own needs, and suppliers have grown stronger by working with the brand.

The seemingly beautiful strategy brings some hidden risks: how to ensure

How can we ensure that core suppliers do not outflow? To maintain the long-term stability of this model, the relationship between buyers and sellers has already broken through the simple supply and demand relationship, and has developed into a real partnership.

In the current business environment, "survival of the fittest and mercenary" environment, it is not easy to create such a relationship.

The difference is that a popular clothing brand in China has many styles and demands for quick response. Therefore, suppliers are scattered and nearly half of the suppliers are smaller, giving the brand a brand name.

More selectivity and dominance.

The advantages of small suppliers in planning flexibility can also support the implementation of quick tracking.

To sum up, centralized suppliers are for low cost and stable quality, while dispersed suppliers can bring more speed advantages and avoid the risk of eggs in a few baskets.

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There are three or fifty sewing machines that can be made into factories. They can also make a picture of their breasts, and promise to say, "I am familiar with the products of your family, I will certainly help you rush out for 10 days!" in the face of such a small supplier, should it develop properly, or is it suitable for training?

If you want to know how to balance cost, speed and quality, it will be easy for suppliers to choose.

A popular clothing brand abroad highlights "fast".

It usually takes about half a year from design development to product listing in the industry, and the brand can even complete the whole process from design to up to two to three weeks.

In order to achieve such a "fast", the brand attaches importance to speed in all aspects of the supply chain, and has made great sacrifices in terms of quality and cost.

Cost sacrifice is mainly reflected in air pportation, and quality sacrifice is mainly reflected in quality inspection.

But the brand is still famous all over the world, and consumers can understand that such parity can not buy quality and style of double high.

Although the quality is often criticized, the pursuit of quality instead of quality is the brand's positioning.

Another foreign popular clothing brand takes into account cost and quality, and chooses sacrifice speed.

In terms of cost, through the "small quantity" strategy and simple design requirements, we gain advantage through bargaining in the process of bargaining with suppliers through scale effect. On the other hand, we emphasize the improvement of suppliers' processes, processes and equipment, and reduce the waste of suppliers in the production process.

In terms of quality, first of all, cooperate with external fabric suppliers, constantly upgrade the quality and function of fabrics, control the quality of products from the source, and gradually create the core fabric with core competitiveness and brand identification; secondly, provide detailed and specific parametric data to the suppliers during the design and development phase; then, in the production process, hire professionals from all fields to conduct on-site guidance and management of the supplier's technology and quality; finally, in the quality inspection section, the company has strict quality inspection on its products, and the rate of quality failure control is 0.3%.